Beer Market Overview in China

In 2019, the Chinese beer market increased by % to $, rising for the second year in a row after two years of decline. In general, the total consumption indicated a temperate expansion from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, consumption increased by +% against 2017 indices. The growth pace was the most rapid in 2013 with an increase of % against the previous year. Beer consumption peaked in 2019 and is expected to retain growth in years to come.

In value terms, beer production rose modestly to $ in 2019 estimated in export prices. Over the period under review, the total production indicated a moderate increase from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, production increased by +% against 2017 indices. The pace of growth was the most pronounced in 2013 when the production volume increased by % year-to-year. Beer production peaked in 2019 and is likely to see gradual growth in the immediate term.

For the fifth consecutive year, China recorded growth in consumption of beer made from malt (excluding non-alcoholic beer), which increased by % to tonnes in 2019. The total consumption volume increased at an average annual rate of +% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2010 with an increase of % year-to-year. Over the period under review, consumption reached the maximum volume in 2019 and is expected to retain growth in the immediate term.

The size of the beer market in China totaled $ in 2019, picking up by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a notable increase from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, consumption increased by +% against 2017 indices. The most prominent rate of growth was recorded in 2013 when the market value increased by % y-o-y. Over the period under review, the market hit record highs in 2019 and is likely to continue growth in the near future.

Driven by increasing demand for beer in China, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from 2019 to , which is projected to bring the market volume to tonnes by the end of .

Over the period under review, imports of beer in China were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for beer.

China remains a net importer of beer; in physical and value terms, imports consistently exceeded exports from 2007 to 2019. In 2019, there was a significant trade deficit of tonnes, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.