Sector Trend Analysis – Beer trends in China

April 2019

Executive summary

The Chinese mass-consumed beer market has matured over the years. During the last few years, the volume of the total beer market has been decreasing, mainly due to the decrease in production and consumption of the Chinese mass-consumed beer segment. However, the value of the total beer market is showing year-on-year growth during the same period, driven by the premiumisation of the market.

With the development of the economy, Chinese consumers' purchasing power keeps rising. Consumers gradually tend to choose beer with high quality instead of low prices. The increasing demand for more premium beer offerings in China is being driven by the country's young, middle income consumer segment, with the tier one cities of Beijing, Shanghai and Tianjin offering the greatest volume of this consumer group, as well as large numbers of bars and restaurants for the distribution of more premium alcohol offerings.

In China, the mainstream beer market enjoys a robust growth rate, which promotes breweries such as China Resources Snow Breweries, Tsingtao Brewery and Yanjing Beer.

E-commerce and innovative solutions for home deliveries in China is increasing convenience for consumers. Digital marketing encourages Chinese alcohol merchants to be present on different social networks.

Chinese consumers trends

Premiumization and craft beer

Alcohol sales in China are growing rapidly with consumers acquiring a taste for international premium products as young Chinese consumers are trading up quality over quantity. Demand for craft beers is significantly increasing with both the rise of local craft breweries and the entrance of a growing number of foreign craft beer brands. There's a shift in preference from mass-produced beers to refined craft beers among Chinese's consumers. Within first-tier citiesFootnote 1, the new wealthy class and the middle-class are abandoning long-standing local pale lager beers and are increasingly demanding high-quality craft beers of specialty flavours, which symbolizes prestige and sophisticated taste. It is no longer difficult to find a large variety of imported beers in first-tier cities in China. Historically, the craft beer market has been primarily driven by foreigners in first-tier cities. Limited and associated with large first-tier cities, such as Beijing, Shanghai, Guangzhou and Shenzhen, craft beer is beginning to spread to lower-tier cities such as Chongqing, Qingdao, Hangzhou and Nanjing. In these cities, craft beer sales are rising, despite being priced much higher than low-end mass market beers. China's craft beer culture is still immature compared to Europe and North America. As craft beer is relatively new, not many people outside of first-tier cities understand the nuances and flavours of craft beer nor the work behind the product.

Millennials and social networks

A new, more globally-minded generation born from 1981 is exercising a strong influence on the market. Chinese millennial consumers are increasingly attracted to premium products and services and are more likely to buy craft beer and imported brands. They are willing to choose more expensive options for higher quality and are demanding unique and individual experience.

Chinese's millennials are highly dependent on their smartphone and are active on social media platforms such as WeChat and WeiboFootnote 2. Being active on social media can make visibility easier and can be a great marketing tool for creating more brand awareness for imported beer. To capture market share and grow sales, manufacturers are targeting these consumers with premium products.

E-commerce

Chinese consumers, especially millennials urbanites in first-tier cities, buy almost everything online, including foreign beer due to the convenience of the developed delivery system in tier-one cities. Beer can be sold online through an online Chinese super market. The most used and trusted e-commerce platforms include Tmall, and JD.com. International players can take advantage of the rapid expansion of e-commerce and to help penetrate China's beer market with more imported products.

Chinese beer market

Chinese consumers are the largest consumers of beer in the world on an aggregate basis (Euromonitor International, 2018). Volume sales of beer in China have slightly declined since 2013, as more Chinese adults strive for healthier lifestyle. However, value sales have increased as consumers drink less, but purchase better quality alcohol.

Historical and forecast top five world markets, retail value sales of beer, US$ millions – fixed 2017 exchange rates
Countries 2013 2017 2018 2022 CAGR* % 2013-17 CAGR* % 2018-22
World 542,291.2 660,576.2 696,198.6 865,814.5 5.1 5.6
United States 96,237.7 103,990.7 106,459.6 118,810.4 2.0 2.8
China 66,341.1 84,728.3 91,086.3 121,571.1 6.3 7.5
Brazil 30,057.6 42,864.0 45,626.4 61,164.8 9.3 7.6
Japan 37,324.5 37,264.3 37,117.8 37,737.8 0.0 0.4
Germany 30,788.9 31,784.7 32,335.6 34,359.3 0.8 1.5

Source: Euromonitor International, 2018

*CAGR: Compound annual growth rate

Chinese consumers are increasingly looking for "mid-price lager", "premium lager", imported beer and dark beer with a stronger taste than their traditional pale ale (for example: Tsingtao or Qingdao, 3.6% alcohol). "Economy lagers" have registered a negative compound annual growth rate (CAGR) through the reviewed period and the trend towards consuming economic lager is expected to continue to decline beyond the forecast period (2018-2022).

Wheat and craft beer are among the beer types with the highest penetration rates among Chinese beer drinkers. IPA, wheat beer and stout have registered impressive growth over the reviewed period and this trend is expected to continue over the forecast period (2018-2022).

Historical and forecast Chinese retail value sales of beer by category, US$ millions – fixed 2017 exchange rates
Category 2013 2017 2018 2022 CAGR* % 2013-17 CAGR* % 2018-22
Beer (total) 66,341.1 84,728.3 91,086.3 121,571.1 6.3 7.5
Dark beer (weissbier/weizen/wheat beer) 477.8 2,944.2 3,896.5 10,051.8 57.6 26.7
Lager 65,364.7 79,584.1 84,521.5 106,490.5 5.0 5.9
Flavoured/mixed lager 149.6 178.7 177.3 174.3 4.5 −0.4
Standard lager 65,215.1 79,405.3 84,344.2 106,316.3 5.0 6.0
Premium lager 10,934.1 23,189.5 25,993.8 39,745.4 20.7 11.2
Domestic premium lager 8,801.6 16,841.8 18,579.6 27,080.6 17.6 9.9
Imported premium lager 2,132.5 6,347.7 7,414.2 12,664.7 31.4 14.3
Mid-priced lager 17,813.3 25,169.2 27,625.7 38,804.2 9.0 8.9
Economy lager 36,467.6 31,046.6 30,724.7 27,766.7 −3.9 −2.5
Non-alcoholic beer 86.4 86.1 83.8 79.1 −0.1 −1.4
Stout 412.1 2,114.0 2,584.6 4,949.7 50.5 17.6

Source: Euromonitor International, 2018

*CAGR: Compound annual growth rate

Off-trade and on-trade reviewFootnote 3

Today, most Chinese producers are making blond beer, which is very light, with little alcohol, such as Tsingtao, Snow or Harbin. This production is slightly exported abroad, but is mainly intended for the domestic market. These beers are usually consumed during meals (off-trade) at home.

Both wheat and craft beer reflect the trend toward premiumisation in beer, and Chinese consumers have shown their appreciation of these products over the reviewed period (2013-2017). Depending of the location, craft beer is often more expensive and only available at the brewery itself, specialized restaurants or beer shops.

According to Euromonitor International, Chinese beer drinkers with high household incomes are more likely to have tried each type of beer and liked them. The likelihood of consumption of wheat and craft beer among beer drinkers with higher household income gives companies a specific audience to target.

Historical and forecast Chinese retail value sales on-trade/off-trade by category, US$ millions ̶ fixed 2017 exchange rates
Category On-trade/off trade 2013 2017 2018 2022 CAGR* % 2013-17 CAGR* % 2018-22
Beer Off-trade 23,401.9 28,094.3 29,927.3 38,329.9 4.7 6.4
On-trade 42,939.2 56,634.0 61,159.0 83,241.2 7.2 8.0
Dark Beer (weissbier/weizen/ wheat beer) Off-trade 92.6 570.6 763.2 2,073.5 57.6 28.4
On-trade 385.2 2,373.6 3,133.2 7,978.3 57.6 26.3
Lager Off-trade 23,200.9 27,065.1 28,608.7 35,195.6 3.9 5.3
On-trade 42,163.8 52,518.9 55,912.7 71,294.9 5.6 6.3
Flavoured/mixed lager Off-trade 68.9 83.6 83.1 82.6 5.0 −0.2
On-trade 80.7 95.1 94.2 91.7 4.2 −0.7
Premium lager Off-trade 3,284.0 7,017.7 7,812.0 11,634.0 20.9 10.5
On-trade 7,650.1 16,171.9 18,181.8 28,111.3 20.6 11.5
Domestic premium lager Off-trade 3,059.9 5,885.5 6,474.7 9,294.8 17.8 9.5
On-trade 5,741.7 10,956.3 12,104.9 17,785.8 17.5 10.1
Imported premium lager Off-trade 224.1 1,132.2 1,337.4 2,339.2 49.9 15.0
On-trade 1,908.4 5,215.6 6,076.8 10,325.6 28.6 14.2
Mid-priced lager Off-trade 5,704.5 7,805.9 8,584.3 12,069.8 8.2 8.9
On-trade 12,108.8 17,363.3 19,041.4 26,734.4 9.4 8.9
Economy lager Off-trade 14,143.5 12,158.0 12,129.3 11,409.2 −3.7 −1.5
On-trade 22,324.2 18,888.6 18,595.4 16,357.5 −4.1 −3.2
Non-alcoholic beer Off-trade 44.6 44.6 43.6 41.8 0.0 −1.0
On-trade 41.8 41.5 40.2 37.4 −0.2 −1.8
Stout Off-trade 63.8 413.9 511.7 1,019.0 59.6 18.8
On-trade 348.3 1,700.1 2,072.9 3,930.7 48.6 17.3

Source: Euromonitor International, 2018

*CAGR: Compound annual growth rate

Companies

In China, the average beer price sold within the off-trade channels continued to increase in 2017 due to rising production costs. Increased labour and logistical costs, as well as falling consumer demand (quality over quantity), led to unit price increases on beer, especially "economy lager beer".

The five largest domestic Chinese brewers are China Resources Beer (Holdings) Co (a subsidiary of state-owned China Resources Holdings Co), Tsingtao Brewery Co, Beijing Yanjing Brewery Co, Harbin Brewery Group and Budweiser Wuhan International Brewing) continued to increase their total volume sales more rapidly than other companies in 2017. Market concentration continues to intensify due to several factors, including their well-established brand reputations, strong capital funding and ongoing efforts in new product development, marketing, and channel expansion. China Resources Beer (Holdings) Co Ltd continues to lead beer production with a 26% total volume share in 2017. Its lead was due mainly to the strong performance of its brand Snow, the flagship brand of the company and the largest single beer brand in volume terms worldwide since 2008. China Resources Beer is planning to sell more premium lagers to fully meet dynamic demand from sophisticated consumers in the incoming years (2018-2022). AB InBev opened a new craft brewing plant in China to meet rising demand for premium beers.

Chinese breweries are regionally fragmented, with local producers dominating smaller markets. In recent years, it has been common for larger beer manufacturers to acquire smaller local manufacturers in order to increase their market shares. For these reasons, and because of strong support for domestic manufacturers, foreign manufacturers may find it hard to invest in the beer manufacturing segment. Therefore, joint ventures (JVs) and acquisitions are the best way to enter the Chinese market (China-briefing, 2017).

First-tier cities represent the largest share of the imported alcohol market in China. However, with economic expansion and changing lifestyles, entering lower tier markets can be a more viable alternative for new entrants. For instance, the Danish brewer Carlsberg successfully implemented this strategy by prioritizing lower tier cities in 2002. To be successful in China, it is necessary for foreign companies to conduct in-depth market research, and understand the objectives and demands of the Chinese consumer, regional differences in consumption, and the internal dynamics of the market structure.

Market share of the largest companies selling beer in China, breakdown in %, 2013-2017
Companies 2013 2014 2015 2016 2017
China Resources Holdings Co Ltd 24.4 25.7 26.1
Tsingtao Brewery Co Ltd 16.9 18.0 17.6 17.3 17.5
Anheuser-Busch InBev NV 13.0 14.3 15.6 16.1 16.1
Beijing Yanjing Brewery Co Ltd 11.2 10.6 10.1 9.8 10.3
Carlsberg A/S 5.3 5.0 5.1 5.0 5.2
Henan Jinxing Brewery Group 2.9 2.5 2.7 2.8 2.6
Guangzhou Zhujiang Brewery Co Ltd 2.2 2.3 2.4 2.5 2.5
Suntory Holdings Ltd 1.5 1.4 1.3 1.2 1.1
Blue Ribbon Intermediate Holdings LLC 0.6 0.7 0.7 0.7
Heineken NV 0.7 0.7 0.5 0.5 0.5
Hangzhou Qiandaohu Brewery Co Ltd 0.3 0.4 0.4 0.4 0.4
Molson Coors Brewing Co 0.1 0.1 0.1 0.1 0.1
San Miguel Corp 0.1 0.1 0.1 0.1 0.1
Kirin Holdings Co Ltd 0.1 0.1 0.2 0.1 0.1
Asahi Group Holdings Ltd 0.1 0.1 0.1 0.1 0.1
Others 19.9 20.1 18.7 17.5 16.5

Source: Euromonitor International, 2018

Sales through different distribution channels vary across different regional markets. For instance, the share of on-premises sales is higher in eastern and southern coastal cities than inland regions. Foreign investors can obtain information on suitable distribution channels by connecting with local agents and channelling their links in China.

E-Commerce represents a cost effective, convenient, and trustworthy platform through which brands can directly connect with millions of users. Online sales of alcohol beverages in China have quadrupled since 2013 and will likely double by 2022 as more consumers look for product information online before buying (Euromonitor International, 2018).

Channel distributions for beer in China, breakdown in %, 2013-2017
Distribution channel 2013 2014 2015 2016 2017
Grocery retailers 99.0 98.0 96.6 95.3 94.4
Hypermarkets 10.0 11.0 11.1 11.3 11.1
Small grocery retailers 46.9 46.4 44.7 42.5 41.8
Convenience stores 0.9 0.9 0.9 0.9 1.0
Independent small grocers 46.0 45.5 43.8 41.5 40.9
Supermarkets 33.5 34.0 34.3 35.1 35.3
Other grocery retailers 8.6 6.6 6.5 6.4 6.0
Non store-based retailing (internet retailing) 1.0 2.0 3.4 4.7 5.6
Source: Euromonitor International, 2018

Foreign beer in China

European beers are perceived as high quality and enjoy an advantageous perception positioning within Chinese consumers. Germany is Europe's leading beer exporter to China in volume and value, but many other European countries have significant market shares of the total imported beer market in China.

In 2014, nearly half of all beers exported to China came from Germany, this trend is now declining to a quarter of all beer exported to China, opening up opportunities for brands from different countries around the world.

In earlier years, a foreign label would have already been received as high quality. However, this has changed due to the rise of the millennial generation in China. This generation's expectations for a product are increasing - quality, value and service have become more important than ever. These higher expectations also apply to foreign brands.

Foreign beer has received increasing competition from local Chinese beer. In addition, the amount of foreign labels entering the market have increased as well, resulting in greater competition overall.

Growing new middle-middle Chinese consumers continue to develop a preference and taste for foreign brands with a desire to trade up through purchases of premium foreign products. Imported beer sells at a relatively high price compared to local beer and offers more profit to distributors and retailers.

While imported brands remain significant to the craft segment in China, increasing numbers of microbreweries are opening across the country.

Top beer exporters to China – Can$, (Harmonized System (HS) code: 2203)
Countries 2013 2014 2015 2016 2017 CAGR* % 2013-17
World 239,707,737 445,245,631 736,967,239 876,962,951 971,732,866 41.9
Germany 141,546,744 214,091,528 257,938,428 318,624,891 272,005,235 17.7
Mexico 10,517,960 11,893,309 36,206,354 59,894,263 142,699,438 91.9
Belgium 17,337,308 32,743,866 48,216,225 70,492,905 90,352,205 51.1
Netherlands 11,354,141 84,340,793 176,206,038 134,939,919 85,478,791 65.6
Portugal 1,157,315 1,416,546 19,669,228 48,426,989 81,996,041 190.1
Spain 5,402,684 15,291,399 49,826,969 74,345,266 66,662,086 87.4
Korea (Republic of) 8,611,263 14,670,593 25,393,565 33,259,255 64,478,310 65.4
France 9,690,544 28,435,020 33,979,342 41,036,499 52,529,644 52.6
United Kingdom 1,443,686 3,383,806 3,905,429 18,807,137 33,751,153 119.9
Russian Federation 2,695,824 3,610,334 9,348,825 13,506,310 16,617,756 57.6
United States 9,148,707 11,039,051 10,733,351 11,620,518 11,879,205 6.7
Italy 602,567 918,118 23,528,939 12,088,257 7,720,582 89.2
Denmark 1,301,392 2,792,232 2,145,712 4,854,424 6,063,477 46.9
Ireland 2,464,051 4,698,397 4,026,772 3,733,882 5,361,639 21.5
Taiwan 3,188,398 4,079,022 4,184,294 2,535,803 4,367,170 8.2
Canada (35th) 37,625 39,548 59,096 145,245 379,988 78.3

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

The ten largest cities are located in the eastern half of the country, situated on or near the coast. Shanghai is the biggest with 22.7 million people, followed by Beijing with 20.4 million. Consumers in first tier cities have the country's highest disposable incomes and tend to seek high quality, premium, and imported products. The provinces of Fujian, Shanghai, Guangdong and Zhedang have important ports and are the major entry points to Chinese markets.

Top ten importers of foreign beer in China by province from world – Can$, (HS code: 2203)
Chinese provinces 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total 239,707,737 445,245,631 736,967,239 876,962,951 971,732,866 41.9
Fujian 16,982,569 80,462,681 245,210,344 324,551,678 412,839,402 122.0
Shanghai 48,840,113 78,038,519 111,095,148 133,680,392 153,711,795 33.2
Guangdong 54,218,105 108,977,261 108,559,401 113,598,530 146,605,940 28.2
Beijing 65,672,975 85,560,721 90,441,113 111,904,314 92,452,883 8.9
Zhejiang 7,680,128 20,668,403 84,257,951 74,050,643 69,425,111 73.4
Tianjin 19,630,027 25,901,643 32,311,675 46,099,881 34,498,859 15.1
Liaoning 7,047,948 11,201,042 16,065,687 21,539,583 17,943,230 26.3
Heilongjiang 2,332,261 3,432,466 9,001,147 12,367,252 15,600,633 60.8
Shandong 1,786,402 4,532,175 9,047,202 16,699,798 11,338,879 58.7
Sichuan 244,828 141,462 368,536 1,903,215 5,245,555 115.1
Jiangsu 2,065,753 4,753,597 3,379,406 3,540,339 3,332,457 12.7
Hebei 24,631 11,390 201,506 2,342,528 2,154,604 205.8
Yunnan 394,041 705,799 765,952 1,704,226 1,252,251 33.5
Henan 1,146,894 1,059,451 1,935,613 2,576,458 891,521 −6.1

Source: Global trade tracker, 2018

*CAGR: Compound annual growth rate

Top ten importers of foreign beer by Chinese port from world – Can$, (HS code: 2203)
Chinese ports by province 2013 2014 2015 2016 2017 CAGR* % 2013-17
China (total) 239,707,737 445,245,631 736,967,239 876,962,951 971,732,866 41.9
Xiamen, Fujian 15,568,176 74,436,374 209,021,552 270,799,311 359,505,077 119.2
Shanghai, Shanghai 65,104,651 107,075,990 127,846,101 138,318,012 149,165,503 23.0
Beijing, Beijing 54,220,287 69,466,837 65,331,247 87,166,889 76,462,758 9.0
Shenzhen, Guangdong 32,004,675 59,783,280 63,143,127 64,764,819 62,749,518 18.3
Ningbo, Zhejiang 4,751,710 13,260,649 59,079,974 54,258,953 49,674,548 79.8
Tianjin, Tianjin 29,590,680 40,117,902 56,781,933 66,029,134 48,767,461 13.3
Fuzhou, Fujian 1,430,551 3,115,276 26,571,567 48,574,899 47,612,300 140.2
Huangpu, Guangdong 9,980,009 25,392,871 28,788,398 25,704,579 41,050,262 42.4
Guangzhou, Guangdong 10,165,594 19,238,328 19,099,762 23,961,192 40,468,097 41.3
Hangzhou, Zhejiang 1,181,587 7,511,293 38,092,331 31,945,979 32,979,690 129.9

Source: Global trade tracker, 2018

*CAGR: Compound annual growth rate

Product launch analysis

In the last five years, 481 new beers were launched China. Out of these, 134 were actually new beers on the shelves of Chinese grocery stores. Featured products are increasingly being relaunched with new formulas and ingredients.

Number of beer launches in China by launch type, from 2013 to 2017
Description of this image follows.
Description of above image
Launch type 2013 2014 2015 2016 2017 Total
New packaging 37 30 26 50 56 199
New variety/range extension 42 20 22 27 36 147
New product 38 22 12 41 21 134
Relaunch 0 0 0 0 1 1
Total sample 117 72 60 118 114 481

Source: Mintel, 2018

Special edition

To capture the attention of consumers, several foreign companies have made or are actively launching products based on Chinese holidays' special events. Over the forecast period, more breweries are anticipated to move their marketing campaigns away from a focus on beer to a broad engagement through games, comics (manga), movies and TV series.

Chinese New Year Budweiser

Chinese New Year Budweiser Source: Mintel, 2018

Country of manufacture China
Launch type New packaging
Price in local currency CNY78.00
Price in US dollars 11.30

Budweiser beer has been repackaged for Chinese New Year 2017. The festive design red carton contains 6 × 355 millilitre (ml) bottles.

2017 Halloween Special Edition Beer
2017 Halloween Special Edition Beer
Company AB Inbev
Brand Budweiser
Country China
Store type Internet/Mail order
Date published December 2017
Launch type New packaging
Price in local currency CNY99.00
Price in US dollars 14.97
Limited Edition Beer in Beach Pack

Limited Edition Beer in Beach Pack Source: Mintel, 2018

Company Cervecería Modelo
Distributor Ab Inbev
Brand Corona Extra
Country China
Store type Mass merchandise/Hypermarket
Date published October 2017
Launch type New packaging
Price in local currency CNY85.00
Price in US dollars 12.92

Packaging

Craft beer can be found in premium supermarkets and supermarkets selling imported goods. Most of these products are in small packaging due to their short shelf-life. In term of packaging, Chinese consumer's attention is attracted by different designs and visual effects. Packaging must be attractive, original and be adapted to local taste. For instance: in 2017 Niulanshan Distillery Co launched a new product under the Bei Er Niu brand. The packaging is printed in Beijing dialect and expresses a cordial and positive attitude, which emotionally connects to the Beijing consumers, especially the younger generation.

Main beer sizes used for new launches, unit pack size (millilitres), 2013-2017
Description of this image follows.
Description of above image
Unit pack size (ml) 2013 2014 2015 2016 2017 Total
500 45 21 19 60 49 194
330 47 29 21 44 32 173
600 10 5 0 1 1 17
355 0 0 5 1 6 12
300 0 3 1 2 2 8
250 0 2 0 0 4 6
320 1 1 0 0 4 6
1000 1 1 0 3 0 5
580 3 0 0 0 1 4
170 0 0 3 0 0 3
Total Sample 117 72 60 118 114 481

Source: Mintel, 2018

Claims

The trend toward premium brands is spreading as beer companies have created new higher-tier brands and imported more upscale varieties, while craft breweries have expanded in China. The increase in premium beer has driven an increase in value sales of beer at retail. Featured products are increasingly released with the label premium or limited edition. Many products already on the market are being repackaged with a new design to embrace the premium concept even if the content has changed slightly or not at all.

Claims listed on pack of beer products in China, 2013-2017Footnote 4
Description of this image follows.
Description of above image
Claim Number of products
Premium 60
Limited edition 19
Ethical – environmentally friendly pa 17
Active on social networks 14
Seasonal 10
Ethical – environmentally friendly product 9
Economy 8
No additives/preservatives 7
Low/no/reduced sugar 3
Event merchandising 3

Source: Mintel, 2018

Product launch examples

Draft Beer
Draft Beer
Company Huarun Snow Beer
Brand Snow Nian Qing
Country China
Country of manufacture China
Store type Internet/Mail order
Date published November 2017
Product source Shopper
Launch type New packaging
Price in local currency CNY120.00
Price in US dollars 18.11

Product Description: Snow Nian Qing Pi Jiu (Draft Beer) has been repackaged in a newly designed format containing 12 x 500ml units. It is made using selected hops, rice and malt to offer a pure taste.

11.5° Beer
11.5 Degree Beer
Company Huarun Snow Beer
Brand Snow Nian Qing
Category Alcoholic beverages
Country China
Country of manufacture China
Import status Not imported
Store type Mass merchandise/Hypermarket
Date published December 2017
Launch type New variety/Range extension
Price in local currency CNY15.10
Price in US dollars 2.28

Product Description: Snow Nian Qing Pi Jiu (11.5° Beer) is made using selected quality malt and processed according to a unique boiling technique to provide a rich taste. This product retails in a 500ml unit featuring the Beijing opera types of facial makeup design.

Black Beer
Black Beer
Company Yanjing Beer
Brand Yanjing
Category Alcoholic beverages
Country China
Country of manufacture China
Import status Not imported
Store type Mass merchandise/Hypermarket
Date published December 2017
Launch type New variety/Range extension
Price in local currency CNY8.50
Price in US dollars 1.28

Product Description: Yanjing Hei Pi is QS certified. This product retails in a 500ml pack.

Original White Beer
Original White Beer
Company Lanbaoshi Beer
Brand Lanbaoshi
Category Alcoholic beverages
Country China
Country of manufacture China
Import status Not imported
Store name Huadong supermarket
Store type Supermarket
Date published December 2017
Launch type New packaging
Price in local currency CNY5.00
Price in US dollars 0.76

Product Description: Lanbaoshi Yuan Jiang Pi Jiu (Original White Beer) has been repackaged. This product is fermented with yeast using wheat, and retails in a newly designed 500ml pack, bearing a QR code.

Pure Draft Beer
Pure Draft Beer
Company Chongqing Brewery
Brand Chongqing Brewery
Category Alcoholic beverages
Country China
Country of manufacture Chile
Import status Imported product
Store name Xinshiji Supermarket
Store type Supermarket
Date published November 2017
Launch type New variety/Range extension
Price in local currency CNY6.30
Price in US dollars 0.95

Product Description: Chongqing Brewery Chun Sheng Pi Jiu (Pure Draft Beer) is QS certified. This product retails in a 500ml pack.

Conclusion

China is a key region for Canadian brewers to consider. Foreign brands are particularly popular among Chinese consumers and craft beers recent introductions to the Chinese market is gaining popularity. When considering such a large market, it is important for companies to make targeted market entry plans. It is recommended that companies work closely with a local partner to determine the exact export and retail requirements for the market. Companies interested in pursuing these markets should consider gaining first hand experience through trade shows and conferences.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

For additional information on Food and Hospitality in China (FHC), 2019, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-Food Canada
ben.berry@canada.ca

Resources

Sector Trend Analysis – Beer in China
Global Analysis Report

Prepared by: François Thériault, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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