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. Alcoholic cocktails are gaining the market share, taking it from beer
The younger generation has always been the main consumers of beer. Thanks to the policy of family planning, which was introduced in China in the 1970-ies, the number of this consumer group from the 80-ies to 90-ies has decreased by 14%. As a result, there are only 188 million of potential beer consumers left in China, instead of 218 million.
In addition to the numeral reduction of the group, the change of tastes of today's youth is an important factor. The generation of the 90s prefers beer low-alcohol drinks to beer, especially the cocktails, the most popular of which is RIO. Thus, in 2014 the pre-cocktail industry growth rate was 200%. 80% of the market of low-alcohol products accounted for RIO cocktail, ice and other outstanding products.
According to our estimates, in 2013 the share of "non-core" beverages (which includes low-alcohol cocktails) in the general structure of alcohol was 2.95%. In 2015 it has grown to 4.2%.
The representative of the company Black Cattle Food Co., Ltd. noted that at the beginning of January 2015, the volume of cocktail market was about 50 billion yuan, with a growth rate of 30-50% in a few years, this category of beverages can easily enter the top three industries by volume of the market.
Cocktails surely win back position in the market not only beer and liquor, but other alcoholic beverages. The advertising on TV and bright, modern packaging of the drinks contribute to such a rapid growth. Moreover, now many girls can enjoy a pleasant taste low-alcoholic cocktail instead of beer with bitterness.
The consumption of cocktails and other alcoholic beverages has become a characteristic feature of Chinese youth of the 21st century. Today the cocktails, especially RIO, have become a fashionable trend that is only gaining momentum.
29 Apr. 2016