Beer Production in China Drops First Time in Over 20 Years

Published By : 28 Sep 2015 | Published By : QYRESEARCH

Proving the ongoing casualty of transforming drinking habits and preferences, beer production in China has slumped for the first time in 20 years. 

China’s beer market has been making headlines all year through and it has just made another one with Anheuser Busch InBev considers taking over SABMiller. This is being considered to be one of the most significant brewery deals of all times and especially at a time when both these beer companies have established themselves well into the Chinese market. 

The question is if China will prove to be a hurdle in the potential deal, either owing to objections from rival regulators or owing to its tumultuous economy.

Beer, like many other consumer markets in China, has been adversely affected by the rollercoaster ride that is economic growth. The growing sophistication and affluence of the Chinese consumers has also impacted the beer market. China’s beer production in terms of volume last year was pegged at 49 billion liters, which, according to the National Bureau of Statistics in China, dropped by almost 3 per cent in a first incident in 24 years. 

In a recent report, the US Department of Agriculture said that the per capita beer consumption in China stands at 34.2 liters, which is just a little more than the per capita consumption of beer around the world at 33 liters. The report concludes that the domestic mass production beer market is nearing saturation.

Retail analyst at Shanghai based China Market Research James Roy said that the reason that there is a lack of growth in the mass market beers is that it is a cheap drink and with the rise in consumer disposable income, they are willing to try out other alternatives such as craft beers, whisky, or wine. 

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