More beef means more barley
It’s the largest beer market in the world and it seems that when it comes to its importance for manufacturers, there will be no half measures—as latest research from Mintel reveals that China’s beer market grew by 29% in volume terms in the five years to 2011, to reach an all-time high total volume of 50 billion liters for the first time in 2011.
Furthermore, the market also grew 63% in value terms over the same period to reach a total market value of RMB 454 billion in 2011, with average value per liter of beer sold rising by 27% since 2007, indicating that the market has seen significant development towards consumers drinking more higher-value beer products.
More significantly, there was a marked uptick in growth in volume beer sales in 2011, rising year-on-year to 2011 by 12% compared to only 6% volume growth in 2010, pointing to renewed consumer interest in consumption of beer.
Matthew Crabbe, director of China research at Mintel, said:
“China is where the leading multinational brewing groups are hoping to make the most growth these days, compared to relatively flat established markets elsewhere and the continued growth in sheer scale is a key factor in that interest.
With continued rapid rises in average incomes and the general feel-good factor about China’s continued economic growth, consumers are not only drinking more beer, but are also beginning to drink more expensive beers.
Consumer confidence has also translated into more people going out to eat, and this caused catering sales to continue to see an increase in significance to overall beer sales compared with retail sales.”
At a total volume of 50 billion liters of beer consumption, China is considerably ahead of its nearest rival, the US, at 24 billion liters.
Brazil at 14 billion liters, Russia and Germany at 9 billion liters respectively, make up the remaining top five markets for volume consumption worldwide...
Source: Argentine Beef Packers S.A.