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....
China. The decline in the brewing industry had a direct impact on the income of brewers
After showing a growth of 28.54% in 2011 and 14.37% in 2013, the sales revenue reduced the rate of growth and last year fell by 1.82% compared to 2014.
It is noteworthy that until 2013 the growth rate of sales revenue took the lead over the growth rate of total profit, and then the situation had changed. Despite a general trend towards a reduction of the rates of income change, the growth of total profit exceeds the growth in sales revenue.
The year of 2015 has brought not only a negative index of the growth rates in sales revenue of -1.82%, but one of the lowest positive growth rates of total profit over the last 6 years is 1.79%.
20 Apr. 2016