China: Demand for beer in China is on the rise, report says

The demand for beer in China is on the rise, leading to a forecasted upward consumption trend over the next decade. By 2035, the market is expected to see a slight increase in performance, with a projected Compound Annual Growth Rate (CAGR) of +1.3% in volume and +1.8% in value, IndexBox said in its latest report published on February 26.

Driven by rising demand for beer in China, the market is expected to start an upward consumption trend over the next decade. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +1.3% for the period from 2024 to 2035, which is projected to bring the market volume to 41B litres by the end of 2035.

In value terms, China’s beer market is forecast to increase with an anticipated CAGR of +1.8% for the period from 2024 to 2035, which is projected to bring the market value to $28.8B (in nominal wholesale prices) by the end of 2035.

For the third year in a row, China recorded decline in consumption of beer, which decreased by -0.1% to 35B litres in 2024. Over the period under review, consumption continues to indicate a noticeable decline. The most prominent rate of growth was recorded in 2021 when the consumption volume increased by 4.1% against the previous year. Over the period under review, consumption attained the peak volume at 50B litres in 2013; however, from 2014 to 2024, consumption stood at a somewhat lower figure.

The size of the beer market in China stood at $23.8B in 2024, approximately equating 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). In general, consumption continues to indicate a pronounced contraction. The most prominent rate of growth was recorded in 2021 when the market value increased by 8.8%. Over the period under review, the market attained the peak level at $33.6B in 2014; however, from 2015 to 2024, consumption stood at a somewhat lower figure.

Beer production in China was estimated at 36B litres in 2024, flattening at the previous year's figure. In general, production, however, recorded a noticeable decline. The pace of growth appeared the most rapid in 2021 with an increase of 4.4% against the previous year. Over the period under review, production hit record highs at 50B litres in 2013; however, from 2014 to 2024, production remained at a lower figure.

In value terms, beer production stood at $24B in 2024 estimated in export price. Over the period under review, production, however, recorded a perceptible descent. The pace of growth was the most pronounced in 2021 with an increase of 9.2%. Over the period under review, production reached the peak level at $33.6B in 2014; however, from 2015 to 2024, production remained at a lower figure.

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