China's Beer Industry Experiences Lowest Drop in 5 Years
Charissa Echavez | | Feb 17, 2016 10:55 AM EST |
(Photo : Getty Images) The beer industry in China experienced its lowest sales drop in five years in 2015. The cool summer and economic slowdown are some of the factors blamed for the decline.
In 2015, the brewery business in China experienced its lowest decline in five years despite the fact that local brands are still dominating in the market, industry experts have revealed.
Last year, beer sales volumes in China declined by five percent to nearly 48 million liters compared with a year earlier. Euromonitor International research manager Joy Huang said that in 2014, sales dropped by just one percent year-on-year.
Like Us on Facebook
Huang explained that the factors behind the decline includes the cool summer as well as the country's economic slowdown and netizens growing consciousness over their health. She further added that it could also be a result of fewer people eating out and more stringent drunk driving rules.
According to Mintel Group Ltd., China's beer market is maturing despite the fact that the total sales volume has declined over the past few years. It also claimed that the market is strengthening, noting that nearly three-fourths of the total volume are taken by the top five beer enterprises. Smaller establishments, on the other hand, comprise between 10 and 15 percent of the market share, while the rest goes to imported products.
Although the sales volume in China's beer industry has declined, the total market value has increased, potentially due to the increased premium brands promotion. However, foreign brands are still dwarfed by local products in the market.
Of the respondents surveyed, only 1 percent claimed to solely drink imported beers. The report reveals that this can be accounted for by the fact that small cities unlike major ones are less exposed to foreign beers, implying international brands should boost their efforts to penetrate them.
Aside from that, imported beers are also more expensive, thus forcing low-wage drinkers to resort to local beers. Also, there is a lack of education about international beer brands, which most likely contributes to the discrepancy.
Given these factors, foreign brands should concentrate on increasing their visibility across China, even in small cities, the report said. It further suggested that brands should modify their products to suit the palates of the Chinese market.
Beside the fact that not all Chinese have the luxury to dispose money on premium and foreign beer brands, 29 percent of the individuals surveyed never thought international brands were up for sale in the country.
Tsingtao and Snow are currently the leading brands in China. The Western brand Budweiser, on the other hand, not only comes fourth in popularity, but also as the most well-established foreign beer brand in the country. Trailing behind is Carlsberg and Heineken.
TagsBeer, china, snow, Tsingtao beer, Budweiser, Carlsberg, Heineken beer
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?