Since the reform and opening up in 1978, China’s beer industry has entered a fast lane of development, with the introduction of advanced technology and equipment from abroad. In 1985, after the national implementation of the “Beer Special Project” policy, a large number of breweries were built in various regions. For example, Yanjing in Beijing, Libo in Shanghai, Huiquan in Fujian, Wusu in Xinjiang, Yellow River in Lanzhou, Shancheng in Chongqing, Blue Sword in Sichuan, Liquan in Guilin, Venus in Henan, Hansi in Shaanxi, etc.
By the end of 1988, there were 813 beer manufacturers nationwide, with a total output of 6.56 million kiloliters. By the end of 1994, beer production had reached 14.15 million kiloliters. Meanwhile, international beer manufacturers such as AB InBev, Carlsberg, and Heineken have successively entered the Chinese market,
Since 1996, China’s beer industry has entered a period of mergers and acquisitions, with domestic and foreign companies continuously acquiring local enterprises to expand their scale. China Resources, Qingdao, and Yanjing have quickly become leading domestic enterprises. And Budweiser InBev, Carlsberg, and SAB have become the three foreign beer giants.
By 2013, China’s beer production peaked and market demand decreased year by year. From 2013 to 2019, beer sales decreased from 50. 282 million to 45. 909 million. Affected by the epidemic, offline consumption scenarios such as restaurants and bars have been greatly impacted, and beer sales have significantly declined. In 2020, beer sales in China were 42. 694 million kiloliters, down 7. 0 % year on year.
Meanwhile, the industry concentration is increasing year by year. Form a competitive pattern of five major enterprises: China Resources Beer, Tsingtao Beer, Budweiser Asia Pacific, Yanjing Beer and Carlsberg. In 2021, the industry’s CR5 reached 92. 9 %. Foreign companies such as Heineken, Suntory, and Asahi Beer have gradually withdrawn from the Chinese market. China Resources Beer, Qingdao Beer, and Yanjing Beer are all state-owned enterprises, while local private brands have limited market share
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Industry Overview
Analysis of Industrial Competition
- Competitive landscape
- Foreign enterprise Analysis
- Sate-owned enterprises Analysis
- Private enterprise analysis
Industrial risk factors
- Overseas risk factors
- Tariff
- Technical limitations
- Industrial chain restrictions
- Investment restrictions
- Xinjiang Related Act (USA), Enterprise Sustainable Development Reporting Directive (EU), International Procurement Instruments (EU), Anti Coercive Measures (EU), Supply Chain Legislation
- Domestic risk factors
- Policy changes and political instability
- Industry standards
- Cybersecurity Law
- Intellectual property right
- Sanctions and anti economic threat measures
- Export restrictions
Negative Business Practices
- Commercial bribery
- Product quality
- Sham publicity
- Infringement of trade secrets
- predatory pricing
- Defamation of competitors’ business reputation
Foreign Enterprise Dynamics
- Risk management
- Business model adjustment
Summary and Suggestions
