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. Elephas Investment Management about consumption, competition, and tendencies on the beer market
According to the rough estimation this year the beer consumption is still at the low level. The situation is aggravated by the rainy season on the East of the country having started earlier than normally.
The competition in the industry is growing fiercer as its character is changing. While previously companies were winning customers with their prices, currently the emphasis is on the quality. The modern consumer has become much less sensitive to the price than 10 years ago.
Yanjing Beer, in tune with the market trends is expanding output volumes of beer in cans. Compared to the last-year dwindling of sales in the industry, the sales of canned beer are increasing. This year, the company will extend the can production capacity in several regions of Guangxi, Hebei, Henan.
Brewery’s labor expenses have climbed this year, though the number of workers remained the same. On the one hand the company strives to improve the working conditions and the wages level. On the other hand they also focus on technical innovations and robotizing work processes.
26 May. 2016