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. New 500 ml volume Snow Beer instead of 580 ml
20 years ago, old Snow Beer was bottled in 640 ml pack. With the course of time, the bottle was reducing till it could contain only 580 ml of beer. In 2016, the pack has shrunk even further, having reached the volume 500 ml.
The reduction of the beer bottle was connected not to historical peculiarities but to the market necessity. According to China Resources Snow Beer factory representative, market researches showed that 500 ml beer bottles are preferable for the mass consumer. In order to meet the drinking habits of the consumers and satisfy the market demand the company launched the new pack.
Thus, beer lovers can only get nostalgic about the original “big stick” bottle.
We should note that the 14% volume decrease can stay unnoticed for beer consumers, but give Snow Beer scope for price competition.
30 May. 2016