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China National Beer Market Insights 2010

VIEWS: 124 PAGES: 217

Synopsis Canadean’s 2010 China Beer Market Insights report provides a comprehensive view of the industry structure, latest industry developments and trends within this market. Comprising of textual analysis and data tables, the report includes comprehensive analysis of the market including legislation and taxation information and a detailed overview of current and emerging trends. The report looks at the structure of the beer industry, with profiles of the leading players. Comprehensive market segmentation data (by price segment; by alcoholic strength; by local segmentation; and by beer type) is backed up by market valuation and pricing data, including selected consumer beer prices. A detailed analysis of all major domestic and imported brands is provided, including a review of new product activity in 2009. Distribution channels (on- vs off-premise) are analysed and packaging trends including beer consumption by pack material, type, size, and refillable vs non-refillable are also included. Summary Canadean’s 2010 China Beer Market Insights report provides a comprehensive view of the industry structure, latest industry developments and trends within this market. Comprising of textual analysis and data tables, the report includes comprehensive analysis of the market including legislation and taxation information and a detailed overview of current and emerging trends. The report looks at the structure of the beer industry, with profiles of the leading players. Comprehensive market segmentation data (by price segment; by alcoholic strength; by local segmentation; and by beer type) is backed up by market valuation and pricing data, including selected consumer beer prices. A detailed analysis of all major domestic and imported brands is provided, including a review of new product activity in 2009. Distribution channels (on- vs off-premise) are analysed and packaging trends including beer consumption by pack material, type, size, and refillable vs non-refill

More Info
									BEER SERVICE
Canadean Contacts:
Debra Richards, Sales Support Manager: +44 (0)1256 394227
Alison Bodnar, Sales Support Administrator: +44 (0)1256 394287




Copyright
Information contained in Canadean reports is confidential and for use only by clients of Canadean with valid contracts.
All copyright in these publications is reserved. No part of this report may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without prior
permission of the copyright owners.

Liability
Whilst every effort has been made to ensure that information contained in this report is accurate and that opinions
expressed are sound, Canadean Ltd cannot be made liable for any errors, omissions or incorrect information or for any
loss or consequential losses arising as a result of decisions taken based on the contents of this report.

Canadean prints its reports on 100% recycled paper using 80% post consumer waste.
Wisdom Databases and Reports available from the Canadean Beer Service in 2010:




 Asia

       Australia                   Indonesia                     Philippines                Taiwan
       China (+ 4 regions)         Japan                         Singapore                  Thailand
       Hong Kong                   Malaysia                      South Korea                Vietnam
       India

 Americas
       Argentina                   Chile                          Guatemala                  Panama
       Brazil                      Colombia                       Honduras                   USA
       Canada                      Costa Rica                     Mexico                     Venezuela
                 (1)
       Caribbean                   El Salvador                    Nicaragua

 West Europe
       Austria                     Germany                        Italy                      Spain
       Belgium                     Greece                         Netherlands                Sweden
       Denmark                     Ireland (Republic)             Norway                     Switzerland
       Finland                     Ireland (Northern)             Portugal                   United Kingdom
       France

 East Europe
       Bulgaria                    Hungary                        Romania                    Slovenia
       Croatia                     Latvia                         Russia                     Turkey
       Czech Republic              Lithuania                      Serbia                     Ukraine
       Estonia                     Poland                         Slovak Republic

 In addition to above reports, topline data is also available for another 120 countries.
 (1)
       Includes data on: Antigua, Aruba, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands,
       Cuba, Dominica, Dominican Republic, Grenada, Guadelupe, Guyana, Haiti, Jamaica, Martinique, Netherlands
       Antilles, Puerto Rico, St Kitts, St Lucia, St Vincent, Surinam and Trinidad & Tobago.




       Global Beer Trends – Excel Report
       Global Brewer Analyser – Excel Report

For more information on Canadean’s Beer Service, Wisdom or any of Canadean’s other beverage services or consulting,
please contact Canadean: tel +44 (0)1256 394224, email sales@canadean.com or visit www.canadean.com
             Market Insights                             China




CONTENTS

Data Revisions Summary

Executive Summary

Section 1       Market Context

Section 2       Market Background Briefing

Section 3       Market Update

Section 4       Brewer Profiles



Methodology
Beer Attributes Definitions
Product Definitions
Packaging Definitions
Glossary
Map




                                                        Contents
                                             Beer Service/May-10   1
            China         Market Insights




    Contents
2   Beer Service/May-10
          Market Insights                                                                China

Caveat: Canadean has updated the population data and also changed sources; previously, the
population data was based on UN data and Canadean has moved to IHSGlobal Insights (IHSGI). The
full time series has been updated so that per capita trends remain intact.

Population data is put together by IHSGI from a range of sources, including UN, local national
statistical offices, IMF and OECD. For further information please see www.ihsglobalinsight.com.




                                                                        Data Revisions Summary
                                                                            Beer Service/May-10   1
            China            Market Insights




    Data Revisions Summary
2   Beer Service/May-10
               Market Insights                                                                                                        China


                                                 EXECUTIVE SUMMARY
EXECUTIVE SUMMARY .................................................................................................................................. 2




                                                                                                                         Executive Summary
                                                                                                                        Beer Service/May-10        1
              China                                                                  Market Insights

 EXECUTIVE SUMMARY


Strong performance in 2009 despite difficulties

Beer enjoyed faster growth in 2009 compared to 2008. This was mainly due to the recovery of the Chinese
economy driven by the government’s stimulus package and the generally good performance of leading players.
However, not only did the industry have to weather the economic storms, it also had to endure increasing
consumer health concerns, ever stricter drink-driving legislation and the continuing competitive threat from other
beverages. The increasing power of retailers meant that competition was fiercer than ever.

Cross-category development

Fruit-flavoured beer and no alcohol beer was more frequently on the market in 2009. Brewers launched non
alcoholic beer and flavoured beer to try and win consumers from the soft drinks market. Blue Ribbon is the most
active in the no alcohol market. Its no alcohol beer drink is available in lemon and orange flavours.

Premium and speciality beer remains popular

Brewers continued launching premium beer and other value-added speciality beer;
Tsingtao’s Augerta and Snow’s Pure Draft successfully caught consumer attention.
Blue Ribbon launched superpremium brand, Blue Ribbon 1844, which is conditioned
in expensive handmade oak barrels and sold at around RMB300 per bottle, but in the
short-term it will still be a niche market.

In the long-term these new products are expected to satisfy niche markets such as
low alcohol beer, no alcohol beer, cider, stout etc.

PET development continued

Large PET (100cl and 150cl) bottles were launched back in 2005, but 2009 saw the launch of smaller sized PET
bottles. The newly established Sino-Belgium Beer (Suzhou) Ltd began using PET for its brand Marten’s 1758 in
50cl and 66cl. PET entered the Shanghai and Guangzhou market this year. Additionally it used its facilities to
bottle 50cl PET fruit flavoured beer for Suntory and Asahi to OEM its Asahi beer in 66cl PET.

M&A activity leads to increasing market consolidation

Leading players increased to use M&A to expand their market presence. Many key players bought or partnered
with other relatively small companies. Tsingtao bought 100% of Baotuquan Beer, CRSB bought Liaoning
Songlin, which is the biggest production plant in the west of Liaoning. Group based brewers achieved profitable
growth through value chain integration and business process re-engineering. Many brewers put a lot of effort
into setting up procurement centres, manufacturing centres and marketing centres in order to further cut costs.

Brewers fight to improve margins

With the escalating cost of raw materials as well as labour and transportation continuously eating into profits,
many brewers were reluctant to raise retail prices for fear of losing market share, and instead chose to adjust
their product portfolios to focus on premium brands which enjoy better margins.

To further cut costs more domestic malt is also being used instead of expensive imported malt. Rising costs
have also made brewers think of ways to increase their efficiency. Large domestic brewers have re-evaluated
brewing techniques and the re-assessment of ways to successfully conserve energy has been one of the major
goals for brewers in China

In terms of pack size, 60cl, 61cl, 62cl and 63cl are increasingly replacing the original 64cl, but the without
reducing the selling price. Smaller pack sizes are being increasingly used; 50cl, 53.5cl and 58cl grew. This is a
widely adopted strategy for coping with the pressures of rising costs.




       Executive Summary
 2     Beer Service/May-10
             Market Insights                                                                        China

FIFA World Cup offers opportunities

The 2010 FIFA World Cup, offers good opportunities for consumption occasions. It will be a golden opportunity
for marketing beer and many brewers are eyeing up the opportunities that it will afford. The world’s leading
brewer A-BInBev announced that China’s oldest beer brand Harbin beer, will be the official beer in China for the
tournament which is a significant opportunity to promote the brand.




                                                                                          Executive Summary
                                                                                         Beer Service/May-10   3
           China          Market Insights




    Executive Summary
4   Beer Service/May-10
                 Market Insights                                                                                                                China


                                                            SECTION 1
                                                         MARKET CONTEXT
MARKET CONTEXT ........................................................................................................................................ 2
 Market Environment ............................................................................................................................................ 2
 The Consumer Palate ......................................................................................................................................... 3
 All Commercial Beverages .......................
								
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