Feb. 29 – In today’s China beer market, the imported beer is leading. The macroeconomic and demographic are contributed to the flourishing of China’s beer market in a way that is rare in China. The Millennial Generation make up a third of the country’s population and they are switching to imported premium brands, flavored alcoholic beverages and ciders. Importing beer to China is gaining a momentum.
The Leading Beer Exporter to China
For import beer to China, at this moment, the top imported beer leading countries in Europe is Germany, the Netherlands, Belgium, and France; they are known as traditionally stronger beer makers with longer histories as beer producers and occupied strong position in beer market internationally. Target China beer market makes them robust, and profitable. Imported beer in China retails at a somewhat better price compared to China produced local beer; it also creates more chance for making better profit to Chinese beer importers, distributors, and retailers as well. Importing beer to China is a trendy business now.
Explosion of Flavored Alcoholic Beverages
Flavored alcoholic beverages have taken off among younger consumers. Brands producing flavored alcoholic beverages are targeting millennials since they tend to prefer drinks with low alcohol content to spirits. China’s millennial generation are fast emerging group as decision-makers with increasing purchasing power. For main stream of modern generation Chinese, life style is in fast pace changing, there are the underserved Chinese millennial consumers which lead to a gap in demand and supply in China’s beverages market. Particularly traditional tapered product offerings domestically have left an opening in the Chinese alcoholic beverage market which is going to be filled with imported products, foreign beer in China is typically with imported flavors.
Craft Beer still Undiscovered
What is the situation of craft beer in China? This is the main concern of top beer importing counties with eye on China market. In spite of craft beer’s success in North America, the classification is still negligible in China since most Chinese consumers have yet to discover true craft beer. It is believed that craft beer can help to answer Chinese consumers’ desire for premium products, the most import is to make craft beer available for Chinese consumer in China market, the foreign brewers is to increase the availability of craft offerings to the China market, and to invest in educating Chinese beer consumers, to create awareness of the variety in the world of craft beer.
Domestic and Import Beer Competition
The continuous growth of imported beer is reflective of the rising demand by consumers for trading up. In this new era, mergers and acquisitions are expected to take place beyond regional beer brands. International players should take advantage of the rapid expansion of e-commerce and help to penetrate 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. China’s beer industry is entering a new era, and it finds itself needing to satisfy a new set of cravings. Find out more about how national and international brands should respond to the changing dynamics in China’s beer market.