Feb. 2 – China is the largest beer market globally in volume terms, as China’s beer market continues on the up in 2016, there is growing space and volume for more foreign premium beer in China, at this moment, China’s beer industry is moving to imported premium brands, the chances present it to the foreign premium beer producers and exporters. China is heading toward the No.1 crown in value terms.
The continuous growth of imported beer in China
The continuous growth of imported beer is reflective of the rising demand by consumers for trading up. With the aspect of rising demand for imported beer by consumers in China, incomes increasing in China are forecast to grow in double-digit terms over 2013 to 2018, there will more younger generation Chinese arrive the legal drinking age in the coming period, and their income will be able them to taste the beer. By factors affecting supply, foreign premium beer in China is trading up, China as a fast emerging beer market with increasing purchasing power, and filled with imported premium beer products. Younger generation Chinese beer drinkers see to sip imported beer brands as part of a modern lifestyle, particularly for the peer group view to try new flavors and brands as a part of their adventurous experiences. What does the supply curve show?
Imported beer sells at a relatively high price compared to local beer in China
Other things equal, price and the quantity supplied are (almost always) positively related. Beer pricing on the mainland China is set to evolve, with unit prices becoming more affordable and consumers start showing preference for superior brands. China accounted for significant percentage of the overall beer volume sales, underlining the major potential for the premium beer segment in China market. If demand increases and supply can’t follow-ups, a shortage occurs, leading to a higher equilibrium price. In China, with ever increasing affordability in urban centers, and among rural consumers, beer sells at a relatively good price. To sell foreign beer with sound price than local beer in China, global brewers can capture the consumers base in China provincial level, as these new consumers’ incomes increase and macroeconomic conditions improve, beer sells at a relatively good price.
What are the opportunities for foreign beer in the Chinese market?
For foreign beer producers and exporters, China means a huge market, and a growing sector for profit, at present, the top European beer exporters to China is Germany, Netherlands, Belgium, and France. There is a domestic and import beer competition in China, foreign beer brands players should take advantage of the rapid expansion at this unique period in China, to enter China’s beer market with more imported products. It won’t be long until China’s top five beer companies get more involved and change the competitive landscape in the country’s beer industry. With current opportunities for foreign beer in the Chinese market, as a result, it offers more profit to foreign beer producers, importers, distributors and retailers as well. To discover more about how national and international brands should respond to the changing dynamics in China’s beer market, the “List of Chinese Major Importers/Distributors for Foreign Beer in China” and “China Beer Market Report 2015-2019” are available upon request, please contact with DCCC, or email to: email@example.com