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. April 2016 saw price cut for beer and wine after “holiday” price rise
According to Price monitoring center of National Development Commission People’s Republic of China, in April 2016, the average prices for beer in bottle of 630 ml decreased by 0.68% against March and returned to the figures of the year beginning.
Note that in January 2016, the prices for beer increased by 2.32% and went on growing till March.
The beer prices rise before Chinese New Year and their decline after the holidays is a primary practice for Chinese market. However, the price hike early in 2016 was by 2.07 p.p. higher than at the beginning of 2014, and the price decrease this April exceeded the index of April 2014 by 0.43 p.p.
It is characteristic for the beer market in China that beer in the bottle of 350 ml gets cheaper on the threshold and during celebrations. Thus, the producers of more expensive beer are trying to promote sales of their product.
This year in February and March, prices for beer packed in 350 ml bottle were getting 0.49% lower every month and stabilized at the mark of 4.04 yuan for a bottle in April. At the year beginning the price was 4.08 yuan. For comparison, a bottle of 630 ml cost 4.41 yuan.
12 May. 2016