Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Move to Shanghai sets new standards
Move to Shanghai sets new standards
Approx. 9 percent more exhibitors
Over 8 percent more space booked by foreign exhibitors
Again increase of visitor quality
The move to Shanghai has propelled CHINA BREW CHINA BEVERAGE to a new level. The most important sector event for the beverage and liquid food industry in the Asian region took place between October 11 and 14, 2016. For the first time it was held in the Shanghai New International Exhibition Centre (SNIEC). Over 53,183 participants came to find out about the latest technologies and solutions for the Asian market from more than 800 exhibitors on 81,000 square meters of exhibition space. CBB 2016 posted a new record in terms of the number of exhibitors from abroad and the amount of space they booked. A total of 265 companies from outside China—among them KHS, Krones, Pentair und Sidel—showcased their offerings to CBB visitors on around 23,000 square meters of space.
Richard Clemens, Managing Director of the German Food Processing and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen) affiliated in the VDMA (Germany´s engineering federation), feels the success of the event proves that the move was the right decision: “The move from Beijing to Shanghai was a milestone for CHINA BREW CHINA BEVERAGE. CBB is now in the right place for the Asian market and, now that it has the right venue in Shanghai, it has been able to further improve on an already high level.”
Dr. Reinhard Pfeiffer, Deputy CEO of Messe München, was also satisfied with this year´s fair: "The good results of CBB demonstrate that we did the right thing for this show in moving to Shanghai. The location of Shanghai enables us a better integration with the beverages industry in the southeast Asian region. And this also increased in the quality of the visitors! This success will certainly also have a positive effect on drinktec. For 2017 we expect even more Chinese exhibitors and visitors to attend the world´s leading trade fair for the beverage and liquid food industry, held in Munich.”
Further rise in the quality of participants
In the international section, over 265 exhibitors from outside China showcased their latest solutions and technologies for the beverage and liquid food industry on around 23,000 square meters of exhibition space. These figures firmly underpin CBB´s reputation as the leading technology platform in the Asian region. Alongside classical solutions for the needs of the beer industry, there was more technology and more solutions on show for the production of soft drinks, fruit juices and water. “CBB is without doubt the leading trade fair for the entire beverages industry in Asia,” said Markus Kosak, Exhibition Director of CBB. “Measuring and analysis equipment was increasingly exhibited, because quality control and quality standards are also key themes for the Asian market,” Kosak continued. CBB is the only trade fair in Asia that covers the entire process chain for all areas of the beverage and liquid food industry, and presents new-generation machinery. 53,183 participants were able to see all of this for themselves.
The exhibitors praised in particular professional level of the visitors at their stands. Volker Kronseder, Board Chairman of Krones AG, confirmed: “The move to the modern expo center in Shanghai has done CBB good. It was extremely busy in the halls. The quality of the visitors coming to our booth was higher and better than in recent years. This shows that the show has developed further.” Professor Dr. Ing. Matthias Niemeyer, Managing Director of KHS, was also very positive about the show: “We are very happy with the switch to Shanghai. The site is better equipped, more modern and as a result it makes for a more professional presentation. CBB is developing very well. In particular we were delighted with the quality of the trade visitors at both our booths this year.”
In line with expectations, the majority of the 53,183 visitors (2014: 52,063) came from China. The number of the international has grown further in 2016. The number of visitors and especially their qualifications underline the importance of CBB as the leading trade fair for the beverage and liquid food industry in Asia.
Accompanying the trade fair, the participants in CBB 2016 were able to take part on all three days in the “German Beer Experience” forum, where they could discuss beer, the art of brewing and the Purity Law. The main themes here included “Beer variations and product trends” and “The development of the brewing industry in Germany, as compared to Belgium”. Of course, following the lectures the visitors also had a chance to try out the different beers.
The organizer of CBB is the China National United Equipment Group Co., Ltd. (Heli). Messe München, the organizer of drinktec, the leading world fair, and its Chinese subsidiary Messe München Shanghai have been co-organizers of CBB since 2011; they are responsible for the international exhibitors.
The next CHINA BREW CHINA BEVERAGE takes place from October 23 to 26, 2018 at the Shanghai New International Exhibition Centre (SNIEC).
Further information on CHINA BREW CHINA BEVERAGE:
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About CHINA BREW CHINA BEVERAGE
CHINA BREW CHINA BEVERAGE (CBB), the "International Brew & Beverage Processing Technology and Equipment Exhibition for China", has taken place every two years in Beijing. It is the most important event for the sector in China and across Asia. The organizer of CHINA BREW CHINA BEVERAGE is the Beijing Zhongqing Heli Machinery Equipment Co. Since August 2011 Messe München International has been a coorganizer of CBB. In this role it, together with its subsidiary MMI Shanghai, is the contact and contracting partner for all the international, non-Chinese exhibitors at CBB. The last CBB in 2016 attracted more than 800 exhibitors. In total 53,183 participants attended this four-day event. The next CBB takes place from October 23 to 26, 2018 at the Shanghai New International Exhibition Centre in Shanghai.
21 Oct. 2016