Beer - China - December 2014

INTRODUCTION
Methodology
Limitation
Definition
Inclusions
Exclusions
EXECUTIVE SUMMARY
Premiumisation becomes the main theme for future development
Figure 1: Best and worst-case forecast of China retail value sales of beer, by value, 2009-19
Five consumer groups identified
Figure 2: Target groups of beer drinkers, September 2014
Beer enjoys a high level of penetration
Figure 3: Penetration of beer, September 2014
Having a meal with friends and family is the key at-home occasion
Figure 4: At-home drinking occasions, September 2014
Eating out remains the key out-of-home drinking occasion
Figure 5: Occasions for drinking beer out of home, September 2014
Brands plays a key role in the beer industry
Figure 6: Beer purchase decision-making process, September 2014
Ingredient quality plays a key role in defining premium products
Figure 7: Attitudes towards premium beer, September 2014
Female segment shows potential
Figure 8: Attitudes towards product and packaging innovation
ISSUES AND INSIGHTS
How to target female consumers in the beer market?
The facts
The implications
Figure 9: Beer Spritzer from Asahi launched in Japan, Q4 2014
Figure 10: Sugar-free beer with minerals from Asahi Japan, Q4 2014
Figure 11: Beer for Japanese food, Suntory, Q2 2014
How to tap into the growing premium segment
The facts
The implications
How to differentiate a product using revitalised claims of limited edition?
The facts
The implications
Figure 12: Winter limited edition beer from Sapporo launched in Japan, Q4 2014
Figure 13: Beck’s Sapphire, Q1 2013
Is craft beer ready to move into the mainstream market?
The facts
The implications
What it means
TREND APPLICATION
Guiding Choice
The Unfairer Sex
Locavore
Figure 14: Fully domestic beer from Sapporo Breweries in Japan, Q2 2014
MARKET DRIVERS
Wine and spirits’ loss is beer’s gain
Moving from quantity to quality
Urbanisation drives up consumers’ level of sophistication
Figure 15: Urbanisation in China, 2000-13
Figure 16: Urban per capita household consumption in cash, 2005-13
Aging population curbs the quantity-driven growth
Figure 17: Aging population in China, 2002-13
Low alcohol tolerance paves ways for lighter beer
The falling prices of ingredients likely to boost profitability
Figure 18: Average prices of barley, 2009-14
MARKET SIZE AND FORECAST
Key points
Growth in the beer market is slowing
Figure 19: Value and volume retail sales for beer in China, 2009-19
Premiumisation becomes the main theme for future development
Figure 20: Best and worst-case forecast of China retail value sales of beer, by value, 2009-19
Figure 21: Best- and worst-case forecast of China retail sales of beer, by volume, 2009-19
Forecast methodology
MARKET SHARE
Key points
Large vs small and global vs local
Figure 22: Market share of leading brands in the beer retail market, by value, 2011-13
Figure 23: Market share of leading brands in the beer retail market, by volume, 2011-13
WHO’S INNOVATING?
Key points
Hop, malt and rice become more appealing as ingredients to highlight
Figure 24: Ingredients claims made by beer brands in China, 2009-13
Aluminium is becoming increasingly popular
Figure 25: Package material used in new beer products launched in China, 2009-13
Package size shows a polarised development
Figure 26: Package size of new products launched in China, 2009-13
Beer with exotic flavours brings new hope to extend the user base
Figure 27: Flavoured beer launched in China, 2013-14
NBeer pub and its 200 beer selections around globe
BRANDS AND COMPANIES
China Resources Enterprise
Tsingtao Brewery
AB InBev
THE CONSUMER – SEGMENTATION
Key points
Five consumer groups identified
Figure 28: Target groups of beer drinkers, September 2014
Conventionalists
Who they are
What they think
When and where they drink
What they like to drink
What factors they believe are associated with premium image
What types of product innovation interest them
How to reach them (marketing implications)
Figure 29: Marketing campaign from Red Star, Q3 2014
Social Animals
Who they are
What they think
When and where they drink
What they like to drink
What factors they believe are associated with premium image
What types of product innovation interest them
How to reach them (marketing implications)
Sophisticated
Who they are
What they think
When and where they drink
What they like to drink
What factors they believe are associated with premium image
What types of product innovation interest them
How to reach them (marketing implications)
Know-it-all
Who they are
What they think
When and where they drink
What they like to drink at home
What they like to drink out of home
What factors they believe are associated with premium image
What types of product innovation interest them
How to reach them (marketing implications)
Figure 30: Winter limited edition beer from Sapporo Breweries in Japan, Q3 2014
THE CONSUMER – PENETRATION OF BEER
Key points
Beer enjoys a high level of penetration
Figure 31: Penetration of beer, September 2014
Domestic beer remains the dominating force but not without challenges
Young people in lower tier cities are more likely to drink domestic beer
Figure 32: Drinkers of domestic beers, by selected demographics, September 2014
International brands are more popular among high earners in tier one cities
Figure 33: The penetration of international brands in beer market, by selected demographics, September 2014
THE CONSUMER – AT-HOME DRINKING OCCASIONS
Key points
Having a meal with friends and family is the key at-home occasion
Figure 34: At-home drinking occasions, September 2014
Solo drinking occasions show potential for premiumisation
Figure 35: Drinking occasions by household monthly income, September 2014
THE CONSUMER – OUT-OF-HOME DRINKING OCCASIONS
Key points
Eating out remains the key out-of-home drinking occasion
Figure 36: Occasions for drinking beer out of home, September 2014
Pubs and clubs attract the most affluent consumers
Figure 37: Selected out-of-home drinking occasions by personal monthly income, September 2014
Domestic brands still dominating eating out occasions
Figure 38: Selected out-of-home drinking occasions, by type of drinkers, September 2014
Men in their thirties are more likely to represent repertoire behaviour
Figure 39: Repertoire behaviour for consumers who drank beer on more than four out-of-home occasions, September 2014
THE CONSUMER – DECISION-MAKING PROCESS OF BEER DRINKERS
Key points
Brands plays a key role in the beer industry
Figure 40: Beer decision-making process, September 2014
Word of mouth remains a powerful information channel
On-trade channels enjoy high level of willingness to trade up
Figure 41: Selected decision making behaviour, by drinking occasions, September 2014
Mid-level earners are more likely to be under the influence of their peers
Figure 42: Agreement with the statement ‘I prefer to buy beer products recommended by people around me’, by personal monthly income, September 2014
Men from affluent families in their twenties are more likely to decide which beer to buy
Figure 43: Agreement with the statement ‘I am the one who decides which beer to buy’, by selected demographics, September 2014
Promotion is not just for cheap products
Figure 44: The agreement with the statement ‘I prefer to buy the beer product which is on promotion’, September 2014
Domestic beer drinkers love local beers
Figure 45: Agreement with selected statements, by user type, September 2014
Figure 46: Fully domestic beer from Sapporo Breweries in Japan, Q2 2014
Figure 47: Attitudes towards high quality ingredients in premium beer segment, by types of drinkers, September 2014
THE CONSUMER – ATTITUDES TOWARDS PREMIUM BRANDS
Key points
Ingredient quality plays a key role in defining premium products
Figure 48: Attitudes towards premium beer, September 2014
Figure 49: Beer products launched in 2014 with highlights of their original wort concentration level
Figure 50: Premium beer brands using ingredient claims to stand out, Q4 2014
Brands have huge impact in the premium segment
Taste is only listed as the fifth most important attribute
Shanghai’s thirst for imported beer remains high
Figure 51: Attitudes towards the attribute ‘imported directly from overseas’, by city, September 2014
Unique taste works better with exclusive drinkers of international brands of beer
Figure 52: Attitude towards the attribute ‘unique taste’ in premium segment, by drinker type, September 2014
Limited edition is more appealing in lower tier cities
Figure 53: Attitude towards selected attribute associated with premium beer, by city tier, September 2014
Figure 54: Winter limited edition beer from Sapporo launched in Japan, Q4 2014
Figure 55: Beck’s Sapphire, Q1 2013
THE CONSUMER – ATTITUDES TOWARDS PRODUCT AND PACKAGING INNOVATION
Key points
Female segment shows potential
Figure 56: Attitudes towards product and packaging innovation
Suitable products to target the female segment
Figure 57: Beer Spritzer from Asahi launched in Japan, Q4 2014
Effective communication with female drinkers from the flavour aspect
Figure 58: The level of interest in selected information on beer labels, by gender, September 2014
Effective communication with female drinkers from a health aspect
Figure 59: Sugar-free beer with minerals from Asahi Japan, Q4 2014
Effective communication with female consumers from food pairing
Figure 60: Beer for Japanese food, Suntory, Q2 2014
Premium beer shows room to grow with male segment as the driving force
Figure 61: Selected attitudes towards product innovation, by gender, September 2014
Flavoured beer shows potential in the mid-range targeting domestic beer drinkers
Figure 62: Agreement with the statement “I am interested in trying beer with innovative flavours”, by income, September 2014
Young consumers in their twenties shows less interests in low ABV beer
Figure 63: Selected attitudes toward product innovation, by age, September 2014
APPENDIX – PENETRATION OF BEER
Figure 64: Penetration of beer, by demographics, September 2014
Figure 65: Beer decision-making process, by penetration of beer, September 2014
Figure 66: Attitudes towards premium beer, by penetration of beer, September 2014
APPENDIX – BEER DRINKING OCCASIONS
Figure 67: Beer drinking occasions – At home, by demographics, September 2014
Figure 68: Beer drinking occasions – Out of home, by demographics, September 2014
Repertoire analysis: Q15 code 1-5: Drinking occasions at home
Figure 69: Repertoire of beer drinking occasions at home, by demographics, September 2014
Figure 70: Target groups, by repertoire of beer drinking occasions at home, September 2014
Repertoire analysis: Q15 code 6-12: Drinking occasions at out of home
Figure 71: Repertoire of beer drinking occasions at out of home, by demographics, September 2014
Figure 72: Target groups, by repertoire of beer drinking occasions at out of home, September 2014
Repertoire analysis: Q15 code 1-12: Drinking occasions
Figure 73: Target groups, by repertoire of beer drinking occasions, September 2014
APPENDIX – DECISION-MAKING PROCESS
Figure 74: Most popular beer decision-making process – When buying beer for drinking at home, by demographics, September 2014
Figure 75: Next most popular beer decision-making process – When buying beer for drinking at home, by demographics, September 2014
Figure 76: Most popular beer decision-making process – When buying beer for drinking out of home, by demographics, September 2014
Figure 77: Next most popular beer decision-making process – When buying beer for drinking out of home, by demographics, September 2014
APPENDIX – ATTITUDES TOWARDS PREMIUM BEER
Figure 78: Attitudes towards premium beer, September 2014
Figure 79: Most popular attitudes towards premium beer – Rank 1, by demographics, September 2014
Figure 80: Next most popular attitudes towards premium beer – Rank 1, by demographics, September 2014
Figure 81: Other attitudes towards premium beer – Rank 1, by demographics, September 2014
Figure 82: Most popular attitudes towards premium beer – Rank 2, by demographics, September 2014
Figure 83: Next most popular attitudes towards premium beer – Rank 2, by demographics, September 2014
Figure 84: Other attitudes towards premium beer – Rank 2, by demographics, September 2014
Figure 85: Most popular attitudes towards premium beer – Rank 3, by demographics, September 2014
Figure 86: Next most popular attitudes towards premium beer – Rank 3, by demographics, September 2014
Figure 87: Other attitudes towards premium beer – Rank 3, by demographics, September 2014
Figure 88: Most popular attitudes towards premium beer – Rank 4, by demographics, September 2014
Figure 89: Next most popular attitudes towards premium beer – Rank 4, by demographics, September 2014
Figure 90: Other attitudes towards premium beer – Rank 4, by demographics, September 2014
Figure 91: Most popular attitudes towards premium beer – Rank 5, by demographics, September 2014
Figure 92: Next most popular attitudes towards premium beer – Rank 5, by demographics, September 2014
Figure 93: Other attitudes towards premium beer – Rank 5, by demographics, September 2014
APPENDIX – ATTITUDES TOWARDS PRODUCT AND PACKAGING INNOVATION
Figure 94: Attitudes towards product and packaging innovation, September 2014
Figure 95: Most popular attitudes towards product and packaging innovation, by demographics, September 2014
Figure 96: Next most popular attitudes towards product and packaging innovation, by demographics, September 2014
Figure 97: Other attitudes towards product and packaging innovation, by demographics, September 2014
APPENDIX – ATTITUDES TOWARDS LABELLING
Figure 98: Attitudes towards labelling, September 2014
Figure 99: Most popular attitudes towards labelling, by demographics, September 2014
Figure 100: Next most popular attitudes towards labelling, by demographics, September 2014
Figure 101: Other attitudes towards labelling, by demographics, September 2014
APPENDIX – GENERAL ATTITUDES TOWARDS BEER
Figure 102: General attitudes towards beer, September 2014
Figure 103: Agreement with the statement ‘There is no difference in taste between beers from well-known brands’, by demographics, September 2014
Figure 104: Agreement with the statement ‘Drinking craft beer is a way of showing my personality’, by demographics, September 2014
Figure 105: Agreement with the statement ‘The taste of beer is more important than its brand’, by demographics, September 2014
Figure 106: Agreement with the statement ‘Beer products from domestic brands taste better than those from international beer brands’, by demographics, September 2014
Figure 107: Agreement with the statement ‘Imported beer is not good value for money’, by demographics, September 2014
Figure 108: Agreement with the statement ‘Draft beer is healthier than other types of beer’, by demographics, September 2014
Figure 109: Agreement with the statement ‘Quality is more important than quantity when drinking beer’, by demographics, September 2014
Figure 110: Agreement with the statement ‘Drinking beer from international brands can better reflect one’s social status than drinking domestic beer’, by demographics, September 2014
Figure 111: Agreement with the statement ‘I am willing to pay more for imported craft beer’, by demographics, September 2014
Figure 112: Agreement with the statement ‘Good value for money is the first priority when selecting which beer to buy’, by demographics, September 2014
Figure 113: Agreement with the statement ‘Happenings in the beer market do not interest me’, by demographics, September 2014
Figure 114: Agreement with the statement ‘I don’t think I am knowledgeable about beer’, by demographics, September 2014
APPENDIX – FURTHER ANALYSIS
Figure 115: Target Groups, by demographics, September 2014
Figure 116: Beer drinking occasions, by target groups, September 2014
Figure 117: Beer decision-making process, by target groups, September 2014
Figure 118: Attitudes towards premium beer, by target groups, September 2014
Figure 119: Attitudes towards product and packaging innovation, by target groups, September 2014
Figure 120: Attitudes towards labelling, by target groups, September 2014
Figure 121: General attitudes towards beer, by target groups, September 2014