Monday, October 19, 2015

Beer Market in China Observes Some Major Trends

Today the approach to win over regulators in China has provided brands a major piece of the maturing beer scene. Growing concentration of the market, supported by more collaborations and mergers between prominent vendors had started reviving the Chinese beer business from 2014 and is still growing. InBev-SABMiller’s collaboration indicates that an enterprise’s confidence to grow in the country. Several studies outline that as a result of mutual penetration of several major market players, domestic or small beer manufacturers would soon lose out on their business. Thus, the market would be left with only big beer brands competing in the market.

Big beer brands would continue to explore new areas in China through mergers and acquisition. These attempts are likely to make the beer market highly competitive. Furthermore, by investing in local beer companies, international market players are planning on establishing a strong presence in the industry quickly. They intend to acquire the existing marketing channels of the local beer companies to create more opportunities and occupy a major market share. Research analysts are positive that despite under the impact of anticorruption policy and economic fall the consumption volume in the country are likely to favor the beer market in next four to five years.

The population of China is expected to increase the demand for beer. Increased disposable income and western influence has shifted the interests of the people towards the premium beer. Besides this Hongkongers are seen tapping sour beer into their current craft beer trend. Although sour beers have a small share in the craft beer industry, but their perplexing flavors are attracting more and more cities’ connoisseurs The world’s most favorite alcoholic beverage has been luring investors in a many ways lately. Beer market has been swayed by surprise proposal from brands like Anheuser-Busch InBev’s for competitor SABMiller in an agreement that would create a good $275 billion market; something large and deliver a game changing strategy confirms an analyst from Goldman Sachs. Cut –throat competition in China’s beer industry has flattened product margins and process of uniting the market can aggravate the issue.  

Several studies indicate though there has been a decline in individualization, the number of people buying beer online has increased. This drastic change in customer behavior has compelled many brands to organize effective distribution channels in these segments. Eyeing the ongoing momentum in the Chinese beer market, Big Market Research has added a report titled “Market Research for Beer in China”. As per the market research report the investment opportunities of China’s beer market is growing rapidly. People are preferring mainstream beer over premium as drinkers have developed a strong taste for it confirm the report. Beside examining the industrial chain structure, the study takes a closer look at the key market drivers, obstacles and opportunity. The study makes sure that different aspects of the industry are considered when analyzing the investment feasibility of the new projects. Major beer brands including Xuanhua Zhonglou Beer Co Ltd, Shandong New Immense Brewery, Yanjing Brewery, Henan Jinxing Brewery etc. are also discussed in the report.

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