ABI Industry News Update #5

New Forecast of Global Beer Market Rebound Sees China at the Epicenter of Growth

Global Beer Market to increase 40% by 2022

New research projects global beer market growth from $530Bn to $750Bn between 2017 and 2022 with an average annual growth of 6%.

China Beer Market to grow 84% by 2020

UBS recent research sees consumer spending on beer in the past year rise consistently across China and projects a strong growth of 28%. The firm has also raised target price for QingDao to ¥45.37 from ¥21.41.

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Japanese Beer Brands Uphill Battle in the China Market


Recent sale of Asahi’s share of its holding in Qingdao Beer has gotten people taking a closer look at Japanese brands  plight in China. As Asahi’s CEO Izumiya Naoki explained that over 70% of China’s market are controlled by more 3-4 big manufacturers, as the market growth begins to slow down it is very hard for the brand to grow in the segment.

Caught at an awkward position Japanese brands have priced higher than some of the European import brands, but have yet to even justify their differentiation from some of the most local beers. Asahi is not the only brand that has faced challenge in China, in 2015 Suntory also sold 50% of its holding in Qingdao back to the corporation. Kirin on the other front has been growing the brand for more than 5 years in China but only account for less than 0.16% of the market.

Because of this Asahi is changing strategies. They are looking to move into the more premium category with the biggest profit margins by introducing their European brands into China in 2018, but is still under heavy competition to establish consumer base.

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