An overview of the beer market, and trends in China and what Chinese distributors, importers really need in 2023
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- China’s beer market is the world’s largest in terms of production and consumption, expected to reach a revenue of USD 125.6 billion by 2023.
- Despite setbacks from COVID-19, the growth of e-commerce platforms has played a key role in the beer market’s resilience.
- Premium beer varieties are witnessing surging popularity, with notable offerings from China Resources Beer and Tsingtao Brewery.
- The standard for “premium” beer is priced above RMB 8 (USD 1.1), indicating a trend towards quality over quantity.
- Craft beer, once a niche sector, is experiencing rapid growth, accounting for a significant portion of the market.
- Both local and international breweries are recognizing the potential of China’s evolving beer market and responding with innovative products.
Chinese importers of Wine & Spirits are searching to imports premium and luxury beers in China
Branding is important for them.
Reputation , of course
Example : The new product of Qindgao Brewery group combines classic whisky barrel brewing and classic wine cellaring (source Qingdao daily)
The Premium Beer market in China
- The Chinese beer landscape has remarkably positioned itself at the global apex in both production and consumption metrics. Projections from Statista suggest a whopping market revenue of USD 125.6 billion by the culmination of 2023.
- The 2020 global health crisis brought with it significant challenges for the Chinese beer sector, with a noticeable downturn in production by nearly 2 billion liters. However, the evolving digital landscape, marked by a surge in e-commerce and live streaming, played a pivotal role in cushioning the blow.
- An intriguing growth trajectory awaits the e-commerce beer niche, anticipating a revenue generation of USD 6 million in 2023. Further, its CAGR of 9.6% from 2022-2027 earmarks it as a pivotal sales and promotional avenue. Noteworthy mentions include CR Beer and Tsingtao, both of which reported stellar H1 2023 results, predominantly steered by their premium product lines.
- A discernible trend shift is emerging. China, home to the world’s largest beer market, is evolving from a quantity-centric approach to a quality-focused one. This is evidenced by the increase in sales of mid-tier and luxury beer offerings, capturing 35-40% of the market in 2022.
- Despite the market volume retracting by 5% from 2017 to 2022, the value proposition saw a 21% upswing, primarily driven by a premium pricing strategy, as indicated by Euromonitor.
- Cautionary notes on the horizon suggest a potential slowdown, as July’s beer production took a 3.4% dip year-on-year, likely influenced by socio-economic pressures and youth unemployment.
- An evident consumer appetite for luxury brews is making waves in the market. This upscale shift is a response to a myriad of factors – an augmentation in disposable income, heightened health and wellness consciousness, and an overarching demand for premiumization. Local brewery magnates are astutely leveraging this trend, curating premium offerings that align with the consumer palate. Notable standouts include CR Beer’s ‘Qin Shi Huang’ and Tsingtao’s ‘Luxury Legend’, both capturing attention, not just for their exquisite taste profiles, but also their premium pricing.
- A beer segment deserving special attention is the craft beer market. From a humble representation in the early 2010s, it now showcases an expansive growth, with over 13,000 enterprises now vested in this domain. As we anticipate a post-COVID resurgence in on-premise beer consumption, the craft beer segment is primed for further expansion.
Drink Less but drink Better
About GMA’s Distribution Capabilities:
At GMA, we recognize the profound potential and growth trajectory of the beer market in China. Our extensive network and partnerships with distributors and importers make us the go-to solution for international breweries aiming to carve a niche in this lucrative market.
- Unparalleled Network: With over a decade of experience, we’ve built strong relationships with key distributors and importers across the country, ensuring your products get the visibility they deserve.
- Transparent Pricing Structure: We operate on a clear and competitive pricing model that balances upfront fees (4,000$) with commissions. (10%) This ensures alignment with your success and provides the flexibility needed for varying business scales.
- Tailored Distribution Solutions: Every brand is unique, and so is our approach to distribution. Our strategies are curated to resonate with your brand identity and market goals, ensuring optimal positioning and reach within China.
With GMA by your side, tapping into China’s booming beer market becomes a seamless experience. Whether you’re an established brewery or an emerging craft beer brand, our expertise and network lay the groundwork for your success in China. Let’s raise a toast to new horizons!