Great Opportunities for Chinese Beer Industry

- Since the 1990s, Chinese beer industry begins toto undeveloped areas. The regional imbalance also
develop rapidly. Chinese beer production andprovides opportunities for beer enterprises to
consumption per capita have been increasedoccupy more market shares as well as growth
significantly. From 2003 to 2007, all economicspace for the beer industry. Presently, beer
indicators in Chinese beer industry saw increase:enterprises concentrate in the development of
the beer production was raised by 14.26 millionundeveloped areas.
kiloliters with the growth rate of 56.9%; the sales 
revenue was increased by RMB 45.52 billion withWith the improvement of residential consumption
the growth rate of 88.6%; the tax went up bylevel, the high-end and middle-end beer market,
RMB 4.704 billion with the growth rate of 47.7%;especially the middle-end beer market develops
the profit was raised by RMB 3.583 billion with thequite rapidly. However, over 90% beer of most
growth rate of 137.8%.Chinese beer enterprises is low-end beer. Except
 a few national beer brands such as Tsingtao
From January to November of 2007, the totalBrewery and Yanjing Beer with definite positioning,
industrial output value, product sales revenue andmost of Chinese beer brands stay in the
profit of Chinese beer producers (abovedevelopment stage with indistinct positioning. Thus,
designated size) amounted to RMB 95.444527beer enterprises must build their brands. With the
billion, RMB 91.098629 billion and RMB 5.814904strengthening of brand influence, more enterprises
billion, rising by 17.54% YOY, 16.30% YOY andwill value the development of their brands.
21.01% YOY respectively.?
 In the following years, Chinese beer industry will
From January to August of 2008, the totalstill receive favorable development opportunities.
industrial output value, product sales revenue andThe sustainable and high-speed development of
profit of Chinese beer producers (aboveChinese national economy and the improvement
designated size) came up to RMB 79.466673of the urbanization level will provide gigantic
billion, RMB 78.209671 billion and RMB 4.657958demand space for the industry; those important
billion, growing by 12.90% YOY, 16.00% YOY anddevelopment strategies such as the Development
4.21% YOY separately.of the West Regions, rejuvenation of old industrial
 bases and building a new socialist countryside will
 bring new development opportunities for the beer
There are huge potentials for Chinese beerindustry; the acceleration of the global economy
consumption. Globally, the beer consumption perand regional economy integration process will
capita in developed countries grows slowly whilepromote Chinese beer industry to allocate
the beer demand volume and production growthresources and expand markets in a wider range.
rates in economically fast growing areas such asIn the future, the prospect of Chinese beer
East Europe and China are much higher than theindustry remains optimistic. With the improvement
international level. The growth rate is 3% higherof residential living standard and the strengthening
than that in developed countries. Chinese beerof health awareness, the demands for beer will be
consumption is featured with regional imbalance.raised exceedingly. Chinese governmental policies
The development route of Chinese beer industryincluding the RMB 4 trillion stimulus package will
is basically in accordance with that of the globaldefinitely drive the development of Chinese beer
beer industry, transferring from developed areasindustry.