Koncept Analytics Report on Chinese Beer Industry

May 17, 2008 - PRLog -- The beer market in China is not national – it is an aggregation of local markets with each region having specific tastes, preferences and spending pattern. As a result of the localized nature of the beer market, small regional breweries dominate these fragmented markets. These regional local brands have a nationwide market share of less than 2%.

Foreign breweries have time and again tried to penetrate the Chinese beer market with differentiated strategies. The foreign breweries like SABMiller, Inbev and Anheuser-Busch with global presence and financial clout have entered the Chinese market through joint ventures/partnerships with domestic breweries. These global firms, mostly in partnerships with national breweries have opted for inorganic growth by acquiring the small regional players and as a result the fragmented market with the total number of breweries exceeding 800 has now reduced to around 500.

The Chinese beer market is still a fragmented market with the top four breweries in China controlling only 45% of the total market share.  China Resources Snow Breweries is the top brewery in China, with an estimated nationwide market share of 15% in 2006, followed by Tsingtao at 13%, Yanjing at 10% and InBev at 7%.

Although China is the world’s largest consumer of beer in terms of volume, it is still under-penetrated because its per capita consumption is still the lowest when compared to the US and European countries. This offers tremendous growth opportunities for the large breweries operating in China. But only those beer firms are likely to succeed which can strengthen their distribution network and sustain low profitability. In the long term, increased scale could be the driving force behind increased market profitability.

The report broadly includes the following

Figures and Tables

Figure 1.1: Consumption of beer in China (Million Tons): 2005-2007
Figure 1.2: Sales and Profit of Chinese beer industry: 2005 & 2006
Figure 3.1 Per capita consumption of beer: Country Comparison- 2006
Figure 3.2: Global volume of premium beer: 1995-2015
Figure 3.3: Percentage share by Segment – Chinese beer market
Figure 3.4: Chinese population by class
Figure 4.1: Supply chain of Chinese beer industry
Figure 7.1: Market share of leading players in China: 2002-2006
Figure 9.1: Beer production forecast in China: 2004-2010
Table 1.1: Total number of breweries by region
Table 1.2: Sales and Profit of beer industry by region: 2005 & 2006
Table 2.1: Global Breweries – Sales volume from emerging markets
Table 3.1: Segment trends in Chinese beer consumption
Table 8.1: CRE’s strategy by beer brands
Table 8.2: Inbev’s breweries in China

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Koncept Analytics, founded in 2005, works with the clients in developing an understanding of the various industries – segments and sub-segments, companies, competitors and suppliers. Koncept specializes in bringing a clear thinking on various industry verticals including telecommunications, healthcare, technology, real estate, retail, logistics and media. Major coverage areas include North America, Europe, Middle East and Asia.