Table of Contents
Executive Summary
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- The market
- Volume growth at the non-retail and retail ends will diverge
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- Figure 1: Retail sales volume and forecast of beer, China, 2015-25
- Figure 2: Non-retail sales volume and forecast of beer, China, 2015-25
- A close-to RMB200 billion market can be anticipated in the next five years
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- Figure 3: Retail value sales and forecast of beer, China, 2015-25
- Impact of COVID-19 on beer consumption
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- Figure 4: Short, medium and long-term impact of COVID-19 on the beer market, December 2020
- Companies and brands
- Heavyweights dominate the beer market in value terms
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- Figure 5: Leading brands’ shares of the retail value market, China, 2018-20
- Hard seltzer is expected to become a household product
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- Figure 6: Shares of flavours of new beer launches, top ten flavours, China, 2014-20
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- Figure 7: Share of new launches in hard seltzer, Global, 2017-20
- Brands ramp up presence at the foodservice channel by opening self-branded bistros
- Beer brands turn to herbal ingredients to put on a natural image
- The consumer
- Beer purchase habits remain fixed and static
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- Figure 8: Usage of beer and other alcoholic drinks, September 2020
- Limited beer knowledge
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- Figure 9: Knowledge towards beer, September 2020
- C-stores on the rise for beer purchases while alcohol chain stores attract adept beer drinkers
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- Figure 10: Purchase channel, September 2020
- Brands need to capitalize on the mindset of “drinking to cheer up”
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- Figure 11: Consumption purpose, September 2020
- Premiumisation is associated with quality ingredients
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- Figure 12: Premium attributes, September 2020
- Develop more flavourful beer to satisfy consumers
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- Figure 13: Attitudes towards beer, September 2020
- What we think
Issues and Insights
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- Blur the line between beer and casual daily beverage to join a bigger market
- The facts
- The implications
- Diversify marketing strategies with a focus on companionship
- The facts
- The implications
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- Figure 14: Examples of self-branded beer from Run the Jewels
- Create communities of adept beer drinkers and encourage premium purchases
- The facts
- The implications
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- Figure 15: Examples of beer drinking sharing workshops
The Market – What You Need to Know
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- Premiumisation is a key pillar bolstering growth
- Health-aware consumers resort to low-ABV beer
- COVID-19 shifted on-trade beer drinking back home
Market Size and Forecast
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- Slight rebound in retail volume in 2020 is unlikely to endure
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- Figure 16: Retail sales volume and forecast of beer, China, 2015-25
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- Figure 17: Non-retail sales volume and forecast of beer, China, 2015-25
- Value sales will approach RMB200 billion in the next five years
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- Figure 18: Retail value sales and forecast of beer, China, 2015-25
Market Factors
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- Escalating health concern will fuel the growth of flavourful, low-ABV beer
- COVID-19 halted out-of-home beer consumption occasions
- COVID-19 has accelerated in-home drinking for relaxation
- Duty impositions on Australian barley entail uncertainty
Market Segmentation
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- Standard beer continues to be the dominant product
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- Figure 19: Share of beer value sales, by segment, China, 2015-20
- Figure 20: Retail value sales and forecast of standard beer, China, 2015-25
- Niche beer drinks are projected to impact more consumers
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- Figure 21: Retail value sales and forecast of strong beer, China, 2015-25
- Figure 22: Retail value sales and forecast of low and no alcohol beer, China, 2015-25
Key Players – What You Need to Know
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- Heavyweights manage to secure their dominance
- Dominant players further expand their business boundaries
- Low-calorie hard seltzer’s development in full gear
Market Share
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- Leading brands estimated to account for 96.5% of retail value in 2020
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- Figure 23: Leading brands’ shares of the retail value market, China, 2018-2020
Competitive Strategies
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- Craft beer’s advantages in taste and quality can be maximized with the help of big names
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- Figure 24: AB InBev’s craft beer brand Boxing Cat
- Collaboration between small breweries sparks consumer interest
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- Figure 25: 8*8 craft beer brewery plan
- Brands march into foodservice venues and diversify revenue channels
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- Figure 26: Tsingtao 1903 bistro & AB InBev Red 186 bistro
- Highlight beer’s function as a mood-soothing solution
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- Figure 27: Saison de Lis Belgian Style Ale Brewed with Chamomile Flowers, USA, 2019
- Figure 28: Green Tea, Jasmine and Bergamot Flavoured Alcohol Free Beverage, Poland, 2019
Who’s Innovating?
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- New launches of hard seltzer on a dramatic rise
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- Figure 29: Shares of flavours of new beer launches, China, top ten flavours, 2014-20
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- Figure 30: Shares of new launches in hard seltzer, Global, 2017-20
- Figure 31: Social Club hard seltzer, USA, 2020
- Figure 32: Corona Hard Seltzer, USA, 2020
- Figure 33: Vizzy, USA, 2020
- Fervent cross-over product innovation within the F&D realm
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- Figure 34: HEYTEA & Le Le Cha’s respective collaborations with Corona & Tsingtao Brewery
- Figure 35: Black Hard Cold Brew Coffee, USA, 2020
- Expand consumers base and intensify brand recognition beyond the F&D realm
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- Figure 36: Heineken’s sponsorship of the US Open and Shanghai Masters
- Figure 37: Harbin Brewery * LPL & Tsingtao Brewery * Karl Lagerfeld
The Consumer – What You Need to Know
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- Consumers’ beer selection tends to be quite narrow
- “Drinking to cheer up” hints at potential change in marketing
- Consumers associate premiumisation with quality ingredients
Usage of Beer and Other Alcoholic Drinks
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- Regular beer continues to dominate consumers’ beer purchase
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- Figure 38: Usage of beer and other alcoholic drinks, September 2020
- High price might be the top concern for craft beer purchases
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- Figure 39: Usage of craft beer, by monthly personal income, September 2020
- Figure 40: Usage of craft beer, by age groups, September 2020
- Interested consumers bode well for niche alcoholic drinks
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- Figure 41: Usage of hard seltzer, by gender, September 2020
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- Figure 42: Usage of cider, by gender, September 2020
Knowledge towards Beer
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- Consumers are not sure of the distinction between ale and lager
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- Figure 43: Knowledge towards beer, September 2020
- Figure 44: Knowledge towards beer, September 2020
- Adept drinkers consume more, especially craft beer
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- Figure 45: Overall consumers’ usage of regular and craft beer, September 2020
- Figure 46: Adept drinkers’ usage of regular and craft beer, September 2020
Purchase Channel
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- Consumers resort to retail channels for beer purchases amid COVID-19
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- Figure 47: Purchase channel, September 2020
- On-trade channels rebound well in spite of the COVID-19 outbreak
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- Figure 48: On-trade purchase channels, September 2020
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- Figure 49: Purchase channel of entertainment venues, by age groups, September 2020
- Enhance cooperation with online channels to increase user traffic
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- Figure 50: Purchase channel of food delivery platforms and WeChat Weidians, by region, September 2020
- Potential for trade-up among adept beer drinkers
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- Figure 51: Purchase channel of overall consumers & adept consumers, September 2020
Consumption Purpose
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- Branding and marketing strategies need to address emotional wellbeing
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- Figure 52: Consumption purpose, September 2020
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- Figure 53: AB InBev’s advertisement
- Figure 54: Consumers who regard beer drinking as one of their habits, by age, September 2020
- Beer seen as a celebratory drink for young consumers
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- Figure 55: Consumption purpose of “to celebrate special occasions”, by age, September 2020
Premium Attributes
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- Quality ingredients are most likely to trigger premiumisation
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- Figure 56: Premium attributes, September 2020
- Admiration for international brands dialled down
- Females are willing to pay more for low-calorie beer with a mild taste
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- Figure 57: Premium attributes of low calories and low bitterness, by gender, September 2020
Attitudes towards Beer
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- On-trade venues point consumer traffic towards retail end
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- Figure 58: Attitudes towards beer, September 2020
- Domestic consumers are curious about a new beer tastes
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- Figure 59: Attitudes towards beer, by company type, September 2020
- Online promotions may turn out to be more effective
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- Figure 60: Purchase channel of overall consumers & price sensitive consumers, September 2020
Appendix – Market Size and Forecast
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- Figure 61: Retail volume sales and forecast of beer, China, 2015-25
- Figure 62: Non-retail volume sales and forecast of beer, China, 2015-25
- Figure 63: Retail value sales and forecast of beer, China, 2015-25
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Appendix – Market Segmentation
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- Figure 64: Retail value sales and forecast of standard beer, China, 2015-25
- Figure 65: Retail value sales and forecast of strong beer, China, 2015-25
- Figure 66: Retail value sales and forecast of low and no alcohol beer, China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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