China: Total beer consumption in China grew by 33.56% between 2000 and 2006 and reached 30.47 bln litres

The Chinese beer market has become increasingly competitive, with companies spending much more on strong advertising campaigns, according to Research and Markets, January 9. This, combined with consumer having increasing amounts of leisure time, is creating the strong growth in demand with is helping to sustain the strong growth in sales which continue to be a feature of the market. Retail sales value rose from 53.36% of the volume market in 2000, to an estimated 55.63% in 2006. Total consumption of beer grew by 33.56% between 2000 and 2006 to reach a total market volume of 30.47 billion litres.

The Chinese beer market has grown at an astounding pace in recent years, spurred on by the massive levels of foreign investment in the market, along with the rise in the average levels of consumer spending in China, thanks to the economic reform policies of the government.

China has now overtaken the US to become the largest national beer market in the world. Thus China is an important market, which needs to be understood more clearly.

China is a complex market, varying widely from region to region. Indeed, China can be described as a collection of regional markets, with very few companies able to operate on a truly national level. The brewing industry has been one of those quickest to modernise in China, and can be seen as a yardstick upon which other industries in China will model themselves.

Despite its huge market size, there remains great scope for development, and many new opportunities are still available in China. Per capita beer consumption in China continues to be relatively very low, and this can only mean that the market still has much room for development.

10 January, 2007