Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
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.
Asia’s Beverage Market to Experience Unprecedented Growth, Claiming Two-Thirds of Global Incremental Consumption by 2021, says Canadean
By 2021 Asia is predicted to contribute two-thirds of global incremental beverage consumption, with China alone responsible for one-third of the additional volume, according to Canadean’s most recent Global Beverage Forecasts report.
Latin America is expected to achieve the second highest incremental volume growth behind Asia, with Brazil the key contributor to the regional increase. The growing importance of the emerging Middle East and North Africa (MENA) markets is strongly highlighted by a forecast incremental volume increase, which is anticipated to be three times that of North America, propelled by burgeoning population growth and demand for soft drinks. The increasing contribution of Africa to the global commercial beverage market can also be evidenced in a predicted volume increment by 2021 that is expected to be double that of East Europe’s.
Of the top ten highest volume markets in 2021, Canadean anticipates that only three developed markets (the US, Japan and Germany) will feature in the ranking. In 2000, the US and West Europe together accounted for nearly one-third of global commercial beverage consumption, but by 2021 their combined share will have shrunk to 18%.
In terms of the top ten incremental volume providers by 2021, China and India will dominate, followed by Brazil. With the exceptions of the US, Saudi Arabia and Mexico in sixth, eighth and ninth positions respectively, all other markets in this group (Indonesia, Pakistan, Thailand and Vietnam) are Asian. Soft drinks, particularly packaged water and bulk/home and office delivery (HOD) water, will be the primary driver of incremental volume growth across all these markets, underscoring not only the growing global health trend, but also the opportunities offered by the lack of good quality tap water in many emerging markets.
Antonella Reda, Product Development Manager at Canadean, states that: “While many major producers are already focusing on harnessing the volume potential in emerging markets, as developed markets slow, expansion is not without its challenges. Producers will need to continue to invest in infrastructure and distribution efficiencies in order to retain profitability, particularly in poorer and slowing economies, and markets beset by political upheaval and/or legislative challenges. Continued investment in development of innovative drinks and value-added propositions that respond to changing consumer lifestyles and demographic changes at both a global and local level, remain vital to drive both volume and value growth.”
23 May. 2016