Li Fucheng, CEO of Beijing Yanjing Beer Group Corporation, commented on the situation on the beer market in China at the economic conference.
He noted that currently the oligopolistic competition in Chinese beer industry has become more evident.
It is expected that in 2015 more than 80% of sales will belong to 5 beer giants: China Resources Snow, Tsingtao beer, Anheuser-Busch InBev, Yanjing Beer and Carlsberg. The consolidation of the brewing industry in China will largely be due to these beer giants.
The market data indicate that consumption of beer in China will be reoriented to a high-quality product. According to the research in the next five years the consumption of high-quality beer will gradually increase and the price of Chinese beer will increase by 17%. The premium segment will have 20% of the market.
According to Li Fucheng, the entering of the market into a phase of oligopolistic competition indicates the maturity of the beer industry in the country. Whilst at the national level the market is more or less stable, competition in the regions is becoming more complicated and intense.