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. Difficulties of Chinese craft brewers
The number increase of small brewers is promoted by China’s leadership on the market of minibreweries manufacturing rather affordable equipment of different quality, capacity, and complement.
Yet, amid the beer market downturn, craft brewers will have to face a new challenge from the industry giants. The point is, the brewing companies like AB InBev and Tsingtao, searching a way to compensate the losses from the sales decline of the tradition bottle beer, decided to fit into the craft niche, ousting the already existing players.
While in the USA according to the definition of the American Brewers’ Association, on being overtaken by a big brewing company, a small brewery loses its craft status, there is no such rule in Chine. Besides, the big players’ desire to enter the craft niche results in pseudo-craft beer.
In order to promote their crafty brands, big companies hire bloggers, sponsor various events of craft brewers and festivals, they are even willing to buy extra shelf space with craft beer.
In this brewery sector, much depends on consumers. Many Chinese think that only import beer can be qualitative. By no means all of them know what craft beer is and find nothing negative in possible monopolization of the industry by big national breweries.
However, can a beer produced in industrial volumes be considered craft? In order to protect their own and consumers’ rights, brewers create their unions such as China Craft Beer Association that help to raise the population’s awareness on the real craft beer.
9 Jun. 2016