Research Report on China Beer Industry and Market
Order ID: CDC-R-2002-025
ISBN: 2001 Edition
Publisher: All China Marketing Research Co., Ltd.
Publication Date: 9/2/2001 12:00:00 AM
Format: Paper Copy
The period from 1980 till 1995 witnessed a boom in China beer production with compound annual growth rate over 20% every five years. After 1995, the annual growth rate was 7.3%. With an output of over 20 million tons, China has become the second largest beer output country in the world.
All of the top 10 provinces produced more than 1 million tones in 2000, about 63% of the total beer output in China. All these provinces are located in east of China. Shandong province still ranked the first with an output of 2.97 million tons.
Beer has become the favorite alcoholic beverage in China, accounting for 61% in 1995 to 78% in 2000 of the total output of alcoholic beverages.
The annual purchase of alcoholic beverage per capita in the urban households was 10 kg in 2000, about 3kg higher than those in the rural areas. Compared with the growth rate of 40% in the urban areas, the rural areas only had 4%.
In 2000, the total import of Barley (except those for seed) was 4631 times higher than total export. 49% of the total import came from Australia and another 45% came from France and Canada. The total import of malt was 1.5 times higher than export. About 77% of malt came from Britain. 65% of hops were imported from Germany.
According to an inspection on beer quality conducted by the State Quality and Technology Supervision Bureau in 2000, 86.5% of 52 brands had met the standards of the product quality. Foreign-made and domestically-made beer had superior quality up to the international standards. Packaging was the main reason for causing the burst of beer bottle.
The total number of beer enterprises has reduced sharply due to the merger, acquisition and bankruptcy. However, the number of foreign-funded enterprises increased 40% in 2000.
In 2000, there were six provinces, which had 51% of total sales revenue in China. Among the six provinces, Shandong had 15.7% of the total revenue and ranked the first, followed by Guangdong, Beijing, Zhejiang, Hubei and Fujian.
In 2000, 64% domestic breweries made profit compared with 53% foreign funded enterprises. The domestic profit making enterprises occupied 52% of the national total profit.
About 110 breweries whose sales revenue above RMB0.1 billion yuan accounted for 73% of the total sales.
In China, the beer, which price below RMB 3 yuan, took 73% of total sales value while the price between RMB 3-10 yuan took 25% and that above RMB 10 yuan, took 2.2%.
The consumption of ordinary beer took 79% in urban area, medium grade took 18% and high grade took 3% in terms of volume. Higher and medium grade beer were mainly consumed in hotels, restaurants and beer yards.
The total import value of beer was 92,926,314 USD and the total export was 39,601,291 USD. China beer export dropped by nearly 50% from 1995 to 1996. The figure then fluctuated and rose 54% in 2000. The unit price of export was 0.47 USD per liter which was 36% of the unit import price.
The biggest acquisition and merger in recent years were: (1) Tsingtao Beer Group Co., Ltd. merged a brewery of Carlsberg in ShangHai in August 2000; (2) Tsingtao Beer Group Co., Ltd. invested 22.5 million USD and merged Asia Shuanghesheng Five Star Breweries Co. (3) Yanjing Beer Co. acquired Wuming Breweries Co. and Sankong Breweries Co. in Shandong province.
Table of Contents:
1. Situation of China beer production
1.2.1 Output from 1990 to 2000
1.2.2 Development speed
1.2.3 Geographic distribution of beer output
1.2.4 Proportion of beer output to the total alcohol beverage output
1.4.1 Labor productivity
1.4.2 Sales profit, operational profit, total profit
1.4.3 Total profit, total loss of losing enterprises, and the balance of the two
1.5 Beer raw material supply
2.1 Variety of beer in China
2.2 Beer quality
2.3.1 Package structure
2.3.2 Movement of package structure
3.1 General situation
3.1.1 Trends of number of beer breweries between 1996 and 2000
3.1.2 Proportion of sales made by domestic breweries and foreign funded breweries
3.1.3 Proportion of profit made by domestic breweries and foreign funded breweries
3.1.4 Number of profit making and losing breweries
3.2 19 breweries with each output over 0.2 million tons
3.3 Foreign funded enterprises
3.3.1 Foreign investment
3.3.2 Output of foreign funded enterprises
3.3.3 Output of foreign brand beer produced domestically
3.3.4 Production permit
4. Breweries grouping by sales revenue
4.1 Total sales revenue by region
4.2 Total breweries grouping by sales revenue
4.2.1 Contribution of each enterprise group to the national total sales
4.2.2 Proportion of major brewery group by sales
4.2.3 Profit margin of each group
4.2.4 Sales revenue per employee by group
4.2.5 Proportion of the number of profit making breweries against the total in each group
4.3 Domestic breweries grouping by sales revenue
4.3.1 Contribution of each enterprise group to the total sales of domestic breweries
4.3.2 Proportion of major brewery group by sales
4.3.3 Profit margin of each group
4.3.4 Sales revenue per employee by group
4.3.5 Proportion of the number of profit making breweries against the total in each group
4.4 Foreign funded breweries grouping by sales revenue
4.4.1 Contribution of each enterprise group to the total sales of domestic breweries
4.4.2 Proportion of major brewery grouped by sales
4.4.3 Profit margin of each group
4.4.4 Sales revenue per employee by group
4.4.5 Proportion of the number of profit making breweries against the total in each group
5. Export and import
5.1.1 Export volume
5.1.2 Main export countries
5.2.1 Beer import from 1995 to 2000
5.2.2 Beer import by origin
5.2.3 Import duty
6.1 Market size
6.2 Market potential
6.2.1 Per capita consumption
6.2.3 Estimation of boundary of beer market
6.3 Market segmentation
6.3.1 Market segmentation, origin (import / domestically produced) specific
6.3.2 Market segmentation, price specific
6.3.3 Market segmentation, urban/rural specific
6.3.4 Market segmentation in urban area, retailer specific
6.3.5 Market share of each grade of beer in urban area in terms of sales revenue
6.3.6 Market segmentation, retailer specific
6.4 Competitive position of top brands in large cities
6.4.1 Market share by top 10
6.4.2 Market share by different income
6.4.3 Market share by top 7 in the four regions
6.5 Distribution channel
6.6 Company Commitment in the market
6.6.1 Acquisition and merge
6.6.3 Direct selling
6.6.4 Local production and local marketing
6.6.5 New product development
6.6.6 Low price for local residents
6.6.7 Beer festival
6.6.8 Local protection
6.6.9 Asahi's ambition
7. Forecast and recommendation
Figures 1 Annual output and growth rate of beer production (1990-2000)..................
Figures 2 Annual increment of beer output......................................................
Figures 3 The 10 provinces produced 69.33% of China's beer in 2000.......................
Figures 4 Per capita Annual purchase of alcoholic wine of urban and rural households...
Figures 5 Labor productivity................................................................. .......
Figures 6 Sales profit, operational profit and total profit.......................................
Figures 7 Total profit, total loss of losing enterprises and the balance of the two
Figures 8 Import of barley and malt (1996-2000)
Figures 9 Proportion of different kinds of beer package
Figures 10 Mean price and weighed mean price of import beer in 1999
Figures 11 Mean price of domestically made beer <3 yuan and >3 yuan 1999-2000...
Figures 12 Changes in number of total and foreign funded enterprises
Figures 13 Contribution of domestic and foreign funded breweries to the industry total sales in 2000
Figures 14 Contribution of domestic and foreign funded breweries to the industry total profit in 2000
Figures 15 Number of profit making and losing breweries in 2000
Figures 16 Foreign capital investment from 1995 to 1999
Figures 17 Proportion of beer output by JV to the national total from 1995 to 1998.........
Figures 18 Output of foreign brand beer from 1995 to 1998
Figures 19 The percentage of total sales revenue by region in 2000
Figures 20 Broken down the national total sales by brewery group
Figures 21 Proportion of sales of major brewery groups
Figures 22 Distribution of profit margin by group (total profit/sales in each group)
Figures 23 Distribution of sales value per employee by group
Figures 24 Percentage of profit making breweries in each group (by sales revenue) 2000
Figures 25 Broken down the domestic brewery total sales by brewery group
Figures 26 Proportion of sales of major brewery groups
Figures 27 Distribution of profit margin by group (total profit/sales in each group)
Figures 28 Distribution of sales value per employee by group
Figures 29 Percentage of profit making breweries in each group
Figures 30 Broken down the foreign founded brewery total sales by brewery group
Figures 31 proportion of major brewery grouped by sales
Figures 32 Distribution of profit margin by group (total profit/sales in each group)
Figures 33 Distribution of sales value per employee by group
Figures 34 Percentage of profit making breweries in each group
Figures 35 Trends of beer export volume from 1995 to 2000 (million liter)
Figures 36 Comparison of export volume and export value by country in 2000 .....
Figures 37 Trends of beer import volume from 1995 to 2000 (million liter) ..........
Figures 38 Comparison of beer import volume and value by origin in 2000 (%)
Figures 39 Per capita consumption of 6 countries
Figures 40 Predicted population for the coming 50 years
Figures 41 Proportion of beer sales revenue by import / domestically produced in 1999
Figures 42 Proportion of beer sales value by price
Figures 43 Beer consumption in urban and rural areas
Figures 44 Composition of beer consumed in urban area in terms of volume
Figures 45 Market share of different grade of beer in urban area
Figures 46 Sales distribution of high-grade beer
Figures 47 Sales distribution of medium grade beer
Figures 48 Sales distribution of ordinary grade beer
Figures 49 Sales distribution of tin-beer
Figures 50 Sales distribution of beer in barrel or bulk
Figures 51 Market share of top 10 brand beers rose from 63% in 1997 to 72% in 1999
Figures 52 Brand beers that market shares went up
Figures 53 Brand beers that market shares went down
Figures 54 Market share by income less than RMB 999 yuan
Figures 55 Market share by income between RMB 1000 and 1999 yuan
Figures 56 Market share by income between RMB 2000 and 2999 yuan
Figures 57 Market share by income above RMB 3000 yuan
Figures 58 Market share of brand beer in northeast region (%)
Figures 59 Market share of brand beer in north region (%)
Figures 60 Market share of brand in Southwest regions
Figures 61 Market share of brand in south region
Figures 62 Distribution channel of local made beer...............................................
Figures 63 Distribution channel of imported brand beer
Figures 64 Top 10 advertisers in terms of expenditure in 2000
Figures 65 Top 10 advertisers in terms of ad time
Figures 66 Top 10 advertisers in terms of ad frequency
Table 1 Beer output of 10 provinces and the percentage against the total in 2000
Table 2 Ranking of annual growth rate above 10% of beer output by province in 2000
Table 3 Proportion of beer output to the total alcohol beverage output
Table 4 Per capita annual income of urban and rural households in top 10 provinces in 2000 (grouped by
urban households income)
Table 5 Household consumption per capita by top 10 provinces in 1999
Table 6 Import of barley group by country in 2000
Table 7 Import of malt grouped by country in 2000
Table 8 Mean prices of import beer and domestically made beer
Table 9 Beer export volume (1995-2000)
Table 10 Beer import from 1995 to 2000
Table 11 Shares of domestic and foreign brand beers among top 10
Table 12 10 Major wholesalers in 2000