Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
In 2015, the Chinese brewers have earned 189.7 billion yuan and plan to receive 37% more in 2020
Beer industry is represented by 470 breweries, which have produced 47157.2 million litres of beer in 2015. This is 5.06% less than last year. According to the China Wine News, sales revenue of the brewing industry was 189,709 billion yuan, up1.52% compared to 2014.
The production and sales of beer brought 14.39 billion of total profit to brewers, which is 6.3% more than in the previous period. In 2015, 139 of all enterprises have suffered losses. A positive development in the industry was the decrease of 14.47% of the total loss for the brewers to 2.359 billion yuan.
According to forecasts of The Wine Society, in 2020 it is planned to increase beer production by 14.51% to 54000 million litres, sales revenue by 37.05%, and profit by 42.7%.
14 Apr. 2016