2020
0
China Beer Market Report 2020
2021-01-08T03:02:25+00:00
OX990860
4995
129557
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Report
en_GB
“A slight pickup in retail volume is attributed to COVID-19, which has bred in-home beer drinking. However, the market’s long-term growth will be driven by premiumisation and the good news…

China Beer Market Report 2020

$ 4,995 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the China Beer market, including the behaviors, preferences and habits of the consumer.

The COVID-19 outbreak has beefed up consumers’ in-home beer drinking habits, which means retail sales of beer will still achieve moderate growth both in volume and value terms in 2020. In the long term, Mintel thinks that the market is more likely to be driven by value growth than volume. Consumers’ willingness to pay more for quality ingredients is a precious opportunity for brands to trade up their offerings. Another chance lies in the future development of low-calorie hard seltzer, which primarily appeals to young and health-aware consumers.

Read on to discover more details or take a look at all of our China Food and China Drinks market research.

Quickly understand

  • How has the COVID-19 outbreak impacted the beer market?
  • What factors are likely to trigger premiumisation in beer purchases?
  • How do brands manage to penetrate beer to more consumption occasions and enlarge the consumer base?
  • What can brands do to address consumers’ elevating health concern towards beer drinking?
  • How to promote beer products more efficiently in the post-outbreak era?

Covered in this report

Brands and products featured: Tsingtao, 8*8, AB Inbev, Saison De Lis, B-Life, Social Club, Corona, Vizzy, Heytea, La Colombe, Heineken, Harbin Brewery and more.

Expert analysis from a specialist in the field

Written by Wen Yu, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

A slight pickup in retail volume is attributed to COVID-19, which has bred in-home beer drinking. However, the market’s long-term growth will be driven by premiumisation and the good news is that consumers are willing to splurge on beer made from quality malt and hops. In addition to product upgrades, the debut of hard seltzer is also expected to gain traction among young and health-conscious consumers. Moreover, brands need to respond to consumers’ top consumption purpose of alleviating stress, meaning that a shift in marketing focus to highlight companionship is indispensable.
Wen Yu
Food & Drink Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Report scope
          • Excluded
          • Executive Summary

              • The market
                • Volume growth at the non-retail and retail ends will diverge
                  • Figure 1: Retail sales volume and forecast of beer, China, 2015-25
                  • Figure 2: Non-retail sales volume and forecast of beer, China, 2015-25
                • A close-to RMB200 billion market can be anticipated in the next five years
                  • Figure 3: Retail value sales and forecast of beer, China, 2015-25
                • Impact of COVID-19 on beer consumption
                  • Figure 4: Short, medium and long-term impact of COVID-19 on the beer market, December 2020
                • Companies and brands
                  • Heavyweights dominate the beer market in value terms
                    • Figure 5: Leading brands’ shares of the retail value market, China, 2018-20
                  • Hard seltzer is expected to become a household product
                    • Figure 6: Shares of flavours of new beer launches, top ten flavours, China, 2014-20
                    • Figure 7: Share of new launches in hard seltzer, Global, 2017-20
                  • Brands ramp up presence at the foodservice channel by opening self-branded bistros
                    • Beer brands turn to herbal ingredients to put on a natural image
                      • The consumer
                        • Beer purchase habits remain fixed and static
                          • Figure 8: Usage of beer and other alcoholic drinks, September 2020
                        • Limited beer knowledge
                          • Figure 9: Knowledge towards beer, September 2020
                        • C-stores on the rise for beer purchases while alcohol chain stores attract adept beer drinkers
                          • Figure 10: Purchase channel, September 2020
                        • Brands need to capitalize on the mindset of “drinking to cheer up”
                          • Figure 11: Consumption purpose, September 2020
                        • Premiumisation is associated with quality ingredients
                          • Figure 12: Premium attributes, September 2020
                        • Develop more flavourful beer to satisfy consumers
                          • Figure 13: Attitudes towards beer, September 2020
                        • What we think
                        • Issues and Insights

                          • Blur the line between beer and casual daily beverage to join a bigger market
                            • The facts
                              • The implications
                                • Diversify marketing strategies with a focus on companionship
                                  • The facts
                                    • The implications
                                      • Figure 14: Examples of self-branded beer from Run the Jewels
                                    • Create communities of adept beer drinkers and encourage premium purchases
                                      • The facts
                                        • The implications
                                          • Figure 15: Examples of beer drinking sharing workshops
                                      • The Market – What You Need to Know

                                        • Premiumisation is a key pillar bolstering growth
                                          • Health-aware consumers resort to low-ABV beer
                                            • COVID-19 shifted on-trade beer drinking back home
                                            • Market Size and Forecast

                                              • Slight rebound in retail volume in 2020 is unlikely to endure
                                                • Figure 16: Retail sales volume and forecast of beer, China, 2015-25
                                                • Figure 17: Non-retail sales volume and forecast of beer, China, 2015-25
                                              • Value sales will approach RMB200 billion in the next five years
                                                • Figure 18: Retail value sales and forecast of beer, China, 2015-25
                                            • Market Factors

                                              • Escalating health concern will fuel the growth of flavourful, low-ABV beer
                                                • COVID-19 halted out-of-home beer consumption occasions
                                                  • COVID-19 has accelerated in-home drinking for relaxation
                                                    • Duty impositions on Australian barley entail uncertainty
                                                    • Market Segmentation

                                                      • Standard beer continues to be the dominant product
                                                        • Figure 19: Share of beer value sales, by segment, China, 2015-20
                                                        • Figure 20: Retail value sales and forecast of standard beer, China, 2015-25
                                                      • Niche beer drinks are projected to impact more consumers
                                                        • Figure 21: Retail value sales and forecast of strong beer, China, 2015-25
                                                        • Figure 22: Retail value sales and forecast of low and no alcohol beer, China, 2015-25
                                                    • Key Players – What You Need to Know

                                                      • Heavyweights manage to secure their dominance
                                                        • Dominant players further expand their business boundaries
                                                          • Low-calorie hard seltzer’s development in full gear
                                                          • Market Share

                                                            • Leading brands estimated to account for 96.5% of retail value in 2020
                                                              • Figure 23: Leading brands’ shares of the retail value market, China, 2018-2020
                                                          • Competitive Strategies

                                                            • Craft beer’s advantages in taste and quality can be maximized with the help of big names
                                                              • Figure 24: AB InBev’s craft beer brand Boxing Cat
                                                            • Collaboration between small breweries sparks consumer interest
                                                              • Figure 25: 8*8 craft beer brewery plan
                                                            • Brands march into foodservice venues and diversify revenue channels
                                                              • Figure 26: Tsingtao 1903 bistro & AB InBev Red 186 bistro
                                                            • Highlight beer’s function as a mood-soothing solution
                                                              • Figure 27: Saison de Lis Belgian Style Ale Brewed with Chamomile Flowers, USA, 2019
                                                              • Figure 28: Green Tea, Jasmine and Bergamot Flavoured Alcohol Free Beverage, Poland, 2019
                                                          • Who’s Innovating?

                                                            • New launches of hard seltzer on a dramatic rise
                                                              • Figure 29: Shares of flavours of new beer launches, China, top ten flavours, 2014-20
                                                              • Figure 30: Shares of new launches in hard seltzer, Global, 2017-20
                                                              • Figure 31: Social Club hard seltzer, USA, 2020
                                                              • Figure 32: Corona Hard Seltzer, USA, 2020
                                                              • Figure 33: Vizzy, USA, 2020
                                                            • Fervent cross-over product innovation within the F&D realm
                                                              • Figure 34: HEYTEA & Le Le Cha’s respective collaborations with Corona & Tsingtao Brewery
                                                              • Figure 35: Black Hard Cold Brew Coffee, USA, 2020
                                                            • Expand consumers base and intensify brand recognition beyond the F&D realm
                                                              • Figure 36: Heineken’s sponsorship of the US Open and Shanghai Masters
                                                              • Figure 37: Harbin Brewery * LPL & Tsingtao Brewery * Karl Lagerfeld
                                                          • The Consumer – What You Need to Know

                                                            • Consumers’ beer selection tends to be quite narrow
                                                              • “Drinking to cheer up” hints at potential change in marketing
                                                                • Consumers associate premiumisation with quality ingredients
                                                                • Usage of Beer and Other Alcoholic Drinks

                                                                  • Regular beer continues to dominate consumers’ beer purchase
                                                                    • Figure 38: Usage of beer and other alcoholic drinks, September 2020
                                                                  • High price might be the top concern for craft beer purchases
                                                                    • Figure 39: Usage of craft beer, by monthly personal income, September 2020
                                                                    • Figure 40: Usage of craft beer, by age groups, September 2020
                                                                  • Interested consumers bode well for niche alcoholic drinks
                                                                    • Figure 41: Usage of hard seltzer, by gender, September 2020
                                                                    • Figure 42: Usage of cider, by gender, September 2020
                                                                • Knowledge towards Beer

                                                                  • Consumers are not sure of the distinction between ale and lager
                                                                    • Figure 43: Knowledge towards beer, September 2020
                                                                    • Figure 44: Knowledge towards beer, September 2020
                                                                  • Adept drinkers consume more, especially craft beer
                                                                    • Figure 45: Overall consumers’ usage of regular and craft beer, September 2020
                                                                    • Figure 46: Adept drinkers’ usage of regular and craft beer, September 2020
                                                                • Purchase Channel

                                                                  • Consumers resort to retail channels for beer purchases amid COVID-19
                                                                    • Figure 47: Purchase channel, September 2020
                                                                  • On-trade channels rebound well in spite of the COVID-19 outbreak
                                                                    • Figure 48: On-trade purchase channels, September 2020
                                                                    • Figure 49: Purchase channel of entertainment venues, by age groups, September 2020
                                                                  • Enhance cooperation with online channels to increase user traffic
                                                                    • Figure 50: Purchase channel of food delivery platforms and WeChat Weidians, by region, September 2020
                                                                  • Potential for trade-up among adept beer drinkers
                                                                    • Figure 51: Purchase channel of overall consumers & adept consumers, September 2020
                                                                • Consumption Purpose

                                                                  • Branding and marketing strategies need to address emotional wellbeing
                                                                    • Figure 52: Consumption purpose, September 2020
                                                                    • Figure 53: AB InBev’s advertisement
                                                                    • Figure 54: Consumers who regard beer drinking as one of their habits, by age, September 2020
                                                                  • Beer seen as a celebratory drink for young consumers
                                                                    • Figure 55: Consumption purpose of “to celebrate special occasions”, by age, September 2020
                                                                • Premium Attributes

                                                                  • Quality ingredients are most likely to trigger premiumisation
                                                                    • Figure 56: Premium attributes, September 2020
                                                                  • Admiration for international brands dialled down
                                                                    • Females are willing to pay more for low-calorie beer with a mild taste
                                                                      • Figure 57: Premium attributes of low calories and low bitterness, by gender, September 2020
                                                                  • Attitudes towards Beer

                                                                    • On-trade venues point consumer traffic towards retail end
                                                                      • Figure 58: Attitudes towards beer, September 2020
                                                                    • Domestic consumers are curious about a new beer tastes
                                                                      • Figure 59: Attitudes towards beer, by company type, September 2020
                                                                    • Online promotions may turn out to be more effective
                                                                      • Figure 60: Purchase channel of overall consumers & price sensitive consumers, September 2020
                                                                  • Appendix – Market Size and Forecast

                                                                      • Figure 61: Retail volume sales and forecast of beer, China, 2015-25
                                                                      • Figure 62: Non-retail volume sales and forecast of beer, China, 2015-25
                                                                      • Figure 63: Retail value sales and forecast of beer, China, 2015-25
                                                                  • Appendix – Market Segmentation

                                                                      • Figure 64: Retail value sales and forecast of standard beer, China, 2015-25
                                                                      • Figure 65: Retail value sales and forecast of strong beer, China, 2015-25
                                                                      • Figure 66: Retail value sales and forecast of low and no alcohol beer, China, 2015-25
                                                                  • Appendix – Methodology and Abbreviations

                                                                    • Methodology
                                                                      • Abbreviations

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