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Beer - China - December 2016

Published By :

Mintel

Published Date : Dec 2016

Category :

Beer

No. of Pages : N/A

Chinese consumer spending has been hit by the economic slowdown; beer sales in China are also slowing, essentially caused by premiumisation (quality over quantity which has resulted in reduced volume sales) and unfavourable weather (eg a rainy summer and severe flooding influenced levels of beer production). In order to grow, the beer market in China demands diversification, which requires beer manufacturers to develop a wider variety of products, to suit different market segments and consumer tastes.

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
Excluded

EXECUTIVE SUMMARY
The market
Figure 1: Retail sales of beer in China, by value, 2011-21
Figure 2: Retail sales of beer in China, by volume, 2011-21
Key players
Figure 3: Market share in the beer market in China, by value, 2015
Figure 4: Market share in the beer market in China, by volume, 2015
The consumer
Domestic brands dominate
Figure 5: Brand preference of beer, August 2016
Gender is a differentiator for drinking occasions
Figure 6: Drinking occasions, by gender, August 2016
Relaxation is the key drinking trigger for beer
Figure 7: Drinking preference, August 2016 vs. June 2015
Beer with health innovation is most appealing
Figure 8: Product innovation, August 2016 vs June 2015
What we think

ISSUES AND INSIGHTS
Who are the target consumers for beer with health and functional claims?
The facts
The implications
Figure 9: Beer with various health or beauty claims, 2014-16
Figure 10: Female-oriented international beer, 2015-16
How can premium and imported beer attract consumers creatively?
The facts
The implications
How to attract young consumers?
The facts
The implications
Figure 11: Meantime Brewing, UK, 2016

THE MARKET – WHAT YOU NEED TO KNOW
An increasing value market and a decreasing volume market
A booming import market
Premiumisation driver - A quality focus instead of quantity
Standard beer segment is losing share

MARKET SIZE AND FORECAST
A growing value market
Figure 12: Retail sales of beer in China, by value, 2011-21
A declining volume market
Figure 13: Retail sales of beer in China, by volume, 2011-21

MARKET DRIVERS AND BARRIERS
Imported beer boom changed the market structure
Premiumisation – Opportunity for quality but threat for quantity
Craft beer is ascending globally and shifting to China
Seasonality and the shrinking of the core consumer group

MARKET SEGMENTATION
Figure 14: Market share of different segments of beer, by value, 2011-16
Figure 15: Market share of different segments of beer, by volume, 2011-16
Strong and light preference and regional difference
Standard segment is losing share

KEY PLAYERS – WHAT YOU NEED TO KNOW
A concentrated market
Domestic players will need to improve branding via beer culture
Beer market is experiencing diversification in product claims

MARKET SHARE
Leading players dominate the beer market
Figure 16: Market share of leading brands in the beer retail market, by value, 2014-15
Figure 17: Market share of leading brands in the beer retail market, by volume, 2014-15
Tsingtao lost value share
Snow is the leader in market volume
AB InBev is the winner in market share gain

COMPETITIVE STRATEGY
Snow is building a beer culture akin to most international brands
Figure 18: Leinenkugel’s Explorer Pack, US, 2015
Yanjing is targeting more meal and leisure occasions with ‘Beer+’
Harbin cooperates with Elema to push beer consumption with convenient delivery
Corona is trying to target the unique beach holiday occasion

WHO’S INNOVATING?
Figure 19: Trends of claims made in newly launched beer products in China, 2011-16
Premium positioning
Figure 20: Chinese beer brands with premium positioning claims, 2016
Figure 21: International beer brands with premium positioning claims, 2016
Beer with functional claims
Figure 22: Chinese beer with functional claims, 2005-10
Figure 23: International beer with functional claims, 2016
Flavoured beer
Figure 24: Chinese flavoured beer, 2016
Figure 25: International flavoured beer, 2016
Tiger launches campaign to preserve Singapore’s street food culture

THE CONSUMER – WHAT YOU NEED TO KNOW
High tier cities favour imported beer while lower tiers favour domestic
Special offers and value for money attract mid-high earners
Married consumers are more active in diverse occasions
Restaurants are a major beer purchase channel in lower tier cities
Majority used at least three channels to buy beer

BRAND PENETRATION
Domestic brands are in the lead
Figure 26: Brand penetration of beer, August 2016
Consistent consumer preference among beer brands
Figure 27: Penetration of leading brands in the beer market, June 2015 vs August 2016
Tier one prefer imported beer while tier two and three favour domestic
Figure 28: Brand preference of beer, by city tier, August 2016
Young females prefer big brand names
Figure 29: Brand preference of beer, by gender and age, August 2016

PERCEPTIONS ON DOMESTIC BEER
Local taste is the most important factor…
Figure 30: Perceptions on domestic beer, August 2016
and most pronounced are men aged 40-49
Figure 31: Perceptions on domestic beer, by gender and age, August 2016
Mid-to-high earners attracted to domestic beer over special offers and value for money
Figure 32: Perceptions on domestic beer, by monthly household incomes, August 2016

DRINKING OCCASIONS
Socialising and dining out top the occasions chart
Figure 33: Drinking occasions, by marital status, August 2016
Married consumers are more active across all occasions
Figure 34: Drinking occasions, by marital status, August 2016
Gender is a differentiator for drinking occasions
Figure 35: Drinking occasions, by gender, August 2016
Figure 36: Beer products with limited edition claims, 2016

DRINKING PREFERENCE
Relaxation is the key drinking trigger for beer
Figure 37: Drinking preference, August 2016 vs June 2015
Figure 38: International branded beer with seasonal claims, 2016
Old consumers are more engaged in drinking beer for certain preference
Figure 39: Drinking preference, by age, August 2016
Figure 40: Warsteiner HiLight Beer

PURCHASE CHANNELS
Traditional retail channels have high penetration
Figure 41: Purchase channels, August 2016
Restaurants as a key on-trade channel especially in lower tier cities
Figure 42: Purchase channels, restaurants, by city tier, August 2016
Majority use at least three channels to buy beer
Figure 43: Purchase channels, repertoire groups, August 2016

PRODUCT INNOVATION
Beer with health innovation is most appealing
Figure 44: Product innovation, August 2016 vs June 2015
Older women are health-conscious while younger women are beauty-conscious
Figure 45: Beer with health innovation, low-alcohol content or beauty benefits, 2016
High earners are more eager for innovation
Figure 46: Product innovation, by monthly household incomes, August 2016
Figure 47: Beer with various innovative claims, 2016

MEET THE MINTROPOLITANS
Mintropolitans embrace both domestic and imported beer brands
Figure 48: Brand preference of beer, Mintropolitans vs non-Mintropolitans, August 2016
Mintropolitans use multiple channels to buy beer
Figure 49: Purchase channels of beer, repertoire groups, Mintropolitans vs non-Mintropolitans, August 2016
Mintropolitans drink more beer in various occasions
Figure 50: Drinking occasions of beer, Mintropolitans vs non-Mintropolitans, August 2016
Figure 51: Sports related international beer brands, 2016

APPENDIX – MARKET SEGMENTATION
Figure 52: Retail sales of strong beer in China, by value, 2011-21
Figure 53: Retail sales of standard beer in China, by value, 2011-21
Figure 54: Retail sales of light/no/low alcohol beer in China, by value, 2011-21
Figure 55: Value sales for beer in China, 2011-21
Figure 56: Retail sales of strong beer in China, by volume, 2011-21
Figure 57: Retail sales of standard beer in China, by volume, 2011-21
Figure 58: Retail sales of light/no/low alcohol beer in China, by volume, 2011-21
Figure 59: Value sales for beer in China, 2011-21

APPENDIX METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

List of Table

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