The Beer market in China: (+Distribution Hacks 😉 )

China is the #1 beer market in the world with an annual consumption of 45.7 billion litres,

Here’s a streamlined and organized bullet list capturing the key trends and data from the beer market 2024 overview: (source thedrinkbusiness)

Growth Trend

• Market Dynamics: The beer market is experiencing robust growth, with major brands vying to introduce products catering to scenario-based consumption.
• Premium Products: There is a notable shift towards premium offerings, likely to enhance profit margins for breweries.
• Economic Impact: Reduced barley prices contribute to a favorable economic impact, supporting local economies.

Pricing Trends

• Cost: The price of imported barley dropped by 30% year-on-year in the first four months to US$273 per ton.
• Future Expectations: Analysts anticipate this downward pricing trend to continue through 2024.
• Overall Benefits: The beer industry is expected to benefit from a mix of upgraded products and lower costs for barley and packaging materials.

Challenges

• Cost Increases: Recent years have seen rising costs for imported barley and packaging materials like aluminum cans and glass bottles, with some costs spiking by as much as 50%.
• Digital new activity are changing the way brands are communicating in China , with Douyin

Market Expansion and Strategy

• New Product Launch: Lucky Buddha beer introduced in the UK, catering to Asian locals with a 4.8% ABV Asian-style lager.
• Strategic Expansion: Carlsberg focuses on expanding in China, targeting both value and volume growth through local and international brands.
• Long-Term Growth: Despite a subdued consumer environment, Carlsberg plans to increase market share and expects an organic operating profit growth of 1% to 5% in 2024.
• Key Growth Driver: Asia continues to be a significant region for volume and value growth for Carlsberg.

This concise format highlights the pivotal trends, challenges, and strategies within the beer market in China, providing clear insights into its evolving landscape.

China Tops Global Beer Production Charts

China has clinched the title of the world’s largest beer producer, according to the latest BarthHaas UK Report. In 2023 alone, China churned out an impressive 360 million hectoliters of beer—that’s 36 billion liters, enough to keep the party going for a long time!

In comparison, the United States brewed 193 million hectoliters, placing it a distant second. While China’s beer production continues to flourish, Europe’s output has waned, dropping by 9 million hectoliters with significant declines in the UK, Germany, and Poland.

Across the Atlantic, the Americas presented a mixed brew: the U.S. experienced a decrease, while South America tapped into growth. As the global beer scene evolves, China’s brewing prowess stands out more than ever.

Trends in the Beer Market in China 2024

1. Craft Beer Growth: There’s a rising trend towards craft and specialty beers among younger and more affluent Chinese consumers.
2. Health Consciousness: Low-calorie and non-alcoholic beers are gaining popularity as health awareness increases.
3. Imported Beers: Imported beers continue to hold a significant appeal due to their perceived quality and status.
4. Local Brewing: Many global brands are setting up local breweries in China to reduce costs and cater more effectively to local tastes.
5. Digital Engagement: Online sales and marketing have become crucial, especially post-COVID-19, with platforms like Tmall and JD.com leading in online beer sales. (like usual Digital is the key in China 😉 )

Direct Communication with Beer Owners and Clients

Talking directly to brewery owners and potential clients in China requires a clear understanding of the market dynamics and consumer preferences. Personal meetings, whether virtual or face-to-face, can help establish trust and facilitate better business relationships. It’s also effective to participate in industry events and expos to connect directly with beer business stakeholders.

In Nanjing the beer Museum

The world of Beer bar in China

Top Hacks to Develop Distribution in China

1. Leverage eReputation:
   • Build and Maintain: Develop a strong online presence with positive reviews and ratings on popular platforms like Dianping or Meituan. Monitor and manage your brand’s reputation actively.
2. Utilize Social Media Wisely:
   • Engagement on Platforms: Use platforms like WeChat and Weibo to engage with potential distributors and consumers. Share engaging content about your beers, brewing process, and brand stories to capture interest.
3. Collaborate with KOLs:
   • Influencer Partnerships: Partner with Key Opinion Leaders (KOLs) who can influence beer drinkers, such as popular food and beverage critics or lifestyle influencers on Douyin or Little Red Book.
4. Gather and Showcase Testimonials:
   • Customer Feedback: Collect and prominently display testimonials from consumers and business partners. Positive experiences shared by others can significantly boost credibility and attract new distribution partners. Taste and brand recognition are the most important purchase considerations for these high-net-worth drinkers. explained Philip Chen
5. Focus on Niche and Premium Products:
   • Specialty Offerings: Offer unique or premium products that stand out in the market, such as organic, craft, or specialty imported beers. Highlighting these aspects can attract distributors interested in catering to niche markets or upscale consumers.

Growing Opportunities for Craft Beer Brands in China Beer Market

Chinese Distributors are searching for Premium Beer Brands

By focusing on these strategies, you can effectively develop your distribution network in China’s evolving beer market, tapping into the growing demand for diverse and quality beer products.

List of Beer distributors in China 2024

1. DXCEL International : Specializes in importing and distributing craft and specialty beers throughout China. They have a robust portfolio that includes both international and domestic brands.
2. ASC Fine Wines : While primarily known for wines, ASC also distributes a selection of premium international beers in major cities across China.
3. Vandegrift Full distribution company that handles the importation and distribution of various alcoholic beverages, including beer, into China.
4. Sinodrink : Focuses on the distribution of imported premium spirit and some craft beers across China.
5. China Resources Snow Breweries (CR Beer) One of China’s largest brewers and beer distributors, known for producing Snow Beer, the best-selling beer brand in the world by volume.
6. Tsingtao Brewery In addition to manufacturing, Tsingtao has an extensive distribution network for its products throughout China and internationally.
7. Reyes Beverage Group Although primarily a U.S.-based distributor, they are involved in distributing various international brands
8. BeerLink Provides importation, marketing, and distribution services for a range of international craft beers in China.
9. Beer.cn exclusive distributor of 12 major Belgian and American craft beer brands in China
10. Dun & B : Spirit distributor, Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers companies in China, including financial statements, sales and marketing …

When looking for a distributor in China, it’s crucial to consider factors such as their geographic coverage, market focus (premium, craft, mass-market), and their supply chain capabilities. Due to the regulatory and logistical complexities of the Chinese market, partnering with established partnercan provide significant advantages in terms of market access and compliance.

WE CAN HELP YOU

Just an email and we will be glad to have a call with you , understand your situation & project