Table of Contents
Executive Summary
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- The market
- Retail volume will decline in the next five years
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- Figure 1: Best- and worst-case forecast for beer, by retail volume, China, 2013-23
- Premiumisation trend may sustain retail value growth
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- Figure 2: Best- and worst-case forecast for beer, by retail value, China, 2013-23
- Companies and brands
- Top brands retain leading positions
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- Figure 3: Companies’ shares of the retail value market, China, 2016 and 2017
- AB InBev communicates beer culture through various channels
- Microbreweries personalise craft beer for Chinese consumers
- The consumer
- More than half of consumers are interested in trying craft beer
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- Figure 4: Penetration of regular and craft beer, China, September 2018
- Leading brands retain high brand penetration
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- Figure 5: Selected brands’ penetration, China, September 2018
- Food companion is the main role for beer
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- Figure 6: Beer’s consumption occasions, China, September 2018
- Brand acts as a quality assurance
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- Figure 7: Primary factors consumers value when choosing beer, China, September 2018
- Beer from Germany, US and Japan has the most penetration
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- Figure 8: Origin of beer consumed, China, September 2018
- Craft beer is a symbol of premium beer in consumers’ perspective
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- Figure 9: Perceptions of craft beer, China, September 2018
- What we think
Issues and Insights
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- Local giants can think about collaboration with foreign brands
- The facts
- The implications
- Craft beer has to engage consumers by building the culture
- The facts
- The implications
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- Figure 10: Pictures of Goose Island craft beer and store style on dianping.com
- Use seasonal products or limited editions to drive consumer curiosity
- The facts
- The implications
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- Figure 11: Beer in Japan with claim on limited edition or seasonal – with the seasonal theme
The Market – What You Need to Know
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- Market volume will not grow in tandem with market value
- Build the culture to make consumers appreciate the taste
- Strong beer will be the future opportunity to drive more value
Market Size and Forecast
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- Retail volume will decrease at a slow rate
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- Figure 12: Best- and worst-case forecast for beer, by retail volume, China, 2013-23
- Hopefully the retail market value will continue its growth
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- Figure 13: Best- and worst-case forecast for beer, by retail value, China, 2013-23
Market Drivers
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- Local leading brands are speeding up the premiumisation
- Communication on beer culture and understanding more of tasting beer
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- Figure 14: Tsingtao’s tasting tips for wheat beer, China, 2018
- Relaxed regulations on imported beer bring more choice to the market
Market Segmentation
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- Acceleration in new product launches for strong beer
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- Figure 15: Proportion of new beer product launches, by segment, China, 2013-18 (Nov)
- Figure 16: Best- and worst-case forecast for strong beer, by retail value, China, 2013-23
- Premiumisation and target marketing push standard beer to grow
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- Figure 17: Best- and worst-case forecast for standard beer, by retail value, China, 2013-23
- Slow growth in light beer
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- Figure 18: Best- and worst-case forecast for light beer, by retail value, China, 2013-23
Key Players – What You Need to Know
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- Leading players continue dominating the market
- Mergers and acquisitions will be the future trend in this market
- Innovation in packaging and functional beer for more occasions
Market Share
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- Leaders retain their leading status in the market
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- Figure 19: Companies’ shares of the retail value market, China, 2016 and 2017
- AB InBev penetrates the market through various channels
Competitive Strategies
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- Local brands are updating their premium product profile
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- Figure 20: Tsingtao’s Augerta beer uses premium claims to connect with consumers, China, 2018
- Figure 21: Pure draft beer by Snow has been repackaged to Jiang Xin Ying Zao, China, 2018
- Budweiser disseminates beer culture through immersive theatre play
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- Figure 22: Budweiser’s beer-themed theatre play "Finding Mr. X", China, 2017
- Microbreweries attract consumers by utilising local ingredients
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- Figure 23: Examples of beer brewed with Chinese ingredients, 2018
Who’s Innovating?
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- Open with lid could bring new experience to beer drinking
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- Figure 24: Harbin launched Jing Xue Ice with pulled ring, China, 2018
- Figure 25: Mike Hess Brewing’s open mike cans with pull-off lid
- Beer advent calendars for holiday gifting
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- Figure 26: Examples of beer advent calendars in Austria, Netherlands and the UK, 2018
- Niche flavours through cross-category collaboration on beer brewing
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- Figure 27: Examples of cross-category collaboration beer, US, 2018
- High-protein beer for post-workout gym-goers
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- Figure 28: Examples of beer with high protein
- Opportunity for new retail for beer
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- Figure 29: Ab InBev’s demo of an unmanned beer store, China, 2018
The Consumer – What You Need to Know
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- Beer is still mainly seen as a food companion
- Lower brand loyalty but brand valued as an indicator of quality
- Craft beer can try more to penetrate into tier two and three cities
Penetration of Regular and Craft Beer
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- Stable usage of beer between 2017 and 2018
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- Figure 30: Penetration of beer, China, 2017 and 2018
- Male and female craft beer core users vary by age
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- Figure 31: Penetration of regular and craft beer, by age and gender, China, September 2018
- Craft beer is better accepted in tier one cities, not surprisingly
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- Figure 32: Penetration of craft beer, by city tiers, China, September 2018
- White-collar workers are potential key consumers for craft beer
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- Figure 33: Penetration of craft beer, selected, by employment, China, September 2018
Brand Penetration
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- Leaders are always leaders and even become stronger
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- Figure 34: Selected brands’ penetration, China, September 2018
- Income level is the determining factor of consumers’ brand choice
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- Figure 35: Selected brands’ penetration, by household income level, China, September 2018
- Regional brands execute great influence in their own battlefield
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- Figure 36: Selected brands’ penetration, by region, China, September 2018
- Beer drinkers in their 40s skew towards one type of beer brand
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- Figure 37: Numbers of beer brands consumers have tried, selected, by age, China, September 2018
Drinking Occasions
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- Food companion as the main role for beer
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- Figure 38: Beer’s consumption occasions, China, September 2018
- Entertainment pulls beer consumption more in tier one cities
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- Figure 39: Beer’s consumption occasions, selected, by city tier, China, September 2018
- More occasions to drink for young female consumers
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- Figure 40: Beer’s consumption occasions, repertoire, selected, by age and gender, China, September 2018
Factors Influencing Purchase Decision
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- Brand is the guarantee for quality when purchasing beer
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- Figure 41: Primary factors consumers value when choosing beer, China, September 2018
- Focus on brand as a primary factor declines while age decreases
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- Figure 42: Factors consumers value when choosing beer, selected, by age, China, September 2018
- Attention to ingredients shows interests in different beer styles
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- Figure 43: Secondary factors consumers value when choosing beer, China, September 2018
- 20-39-year-olds differentiate beer style by ingredients used
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- Figure 44: Factors consumers value when choosing beer, ingredients, by age, China, September 2018
- Indication from non-top factors
Preference of Origin
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- German beer is the most popular, followed by the US and Japan
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- Figure 45: Origin of beer consumed, China, September 2018
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- Figure 46: Examples of claims used by German beer brands
- Figure 47: Special brewing method used by Pilsner Urquell from Czech Republic
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- Figure 48: Example of product emphasising its origin and uniqueness, China, 2017
- Foreign beer has high penetration in South and North
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- Figure 49: Usage of beer from selected origins, by region, China, September 2018
Perceptions of Craft Beer
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- Consumers are willing to pay a higher price for craft beer
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- Figure 50: Perceptions of craft beer, China, September 2018
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- Figure 51: Example of differentiation of craft beer and regular beer by Urbrew
- A definition of craft beer can help with long-term market growth
Meet the Mintropolitans
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- Higher interest in Carlsberg and Budweiser
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- Figure 52: Selected brands’ penetration, by consumer segmentation, China, September 2018
- MinTs pay more attention to ingredients used in beer
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- Figure 53: Primary factors consumers value when choosing beer, by consumer segmentation, China, September 2018
- Figure 54: Secondary factors consumers value when choosing beer, by consumer segmentation, China, September 2018
- MinTs are active in trying beer from different brands
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- Figure 55: Numbers of beer brands consumers have tried, selected, by consumer segmentation, China, September 2018
Appendix – Market Size and Forecast
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- Figure 56: Value sales of China’s beer retail market, 2013-23
- Figure 57: Volume sales of China’s beer retail market, 2013-23
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Appendix – Market Segmentation
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- Figure 58: Value sales of China’s beer retail market, by segment, 2013-23
- Figure 59: Volume sales of China’s beer retail market, by segment, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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