Beer Production in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
1522Revenue
$29.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
229k
Businesses
439
Wages
$X.Xbn
Beer Production in China industry analysis
In recent years, bans on driving while under the influence of alcohol and bans on outdoor barbecuing have contributed to the industry's decline. Weaker consumer spending and unfavorable weather conditions, particularly rainstorms in the mid-lower reaches of the Yangtze River and parts of southern China, caused industry revenue to decrease 9.9% in 2016. Since the second half of 2017, the price of raw materials of beer production rose rapidly, compressing industry profit margins. In order to improve profitability, most industry companies increased the selling prices of beer products in early 2018, ranging from 10% to 50%. Industry leaders further reduced production capacity and closed small factories. Output decreased from 2017. In 2019, industry revenue increased due to product structure shifts towards mid- and high-end beer, and a higher selling price. In 2020 industry revenue decreased, mainly due to weakened demand from the Covid-19 pandemic. In 2021, industry revenue recovered and has since continued to accelerate thanks to high-end transformation.Industry profitability has been increasing in 2023, mainly due to rising beer prices and the development of more profitable high-end products. Average industry profit margins are sitting at an estimated at 12.3% in 2023. Revenue for the Beer Production industry in China is expected to increase an annualized 2.6% over the five years through 2023 to total $29.7 billion, including an anticipated growth of 7.5% in 2023.The industry's market share concentration has increased over the past decade and new industry leaders have emerged in recent years. Industry competition mainly occurs among the four national beer brands: Snow, Tsingtao, Yanjing and Budweiser.Surplus beer production capacity and intense competition is forecast to lead to further consolidation across the industry in the coming years. As the industry's product structure continues to develop, Industry revenue will grow at a forecast annualized 5.9% over the five years through 2028, to total $39.7 billion.
Trends and Insights
- More expensive tastes drive continual industry development. Instead of sales volume increases, demand for more premium beer works as the major industry development driver.
- Bottled beer is the largest product segment. Effective manufacturing costs have made bottled beer the largest product segment, and it is popular in high-end markets.
- Shandong is the largest beer production base. Qingdao, where Tsingtao Brewery Company Limited are headquartered, is one of the first regions in China to produce beer, and one of the birthplaces of China's beer industry.
- Industry concentration has increased. Beer consumption habits show a trend of concentration towards mainstream brands. Top enterprises are constantly growing their market shares through production expansion and acquisition.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $29.7bn in 2024.
Trends and Insights
China's beer market has entered a new era of stable growth
- After years of high development, the Beer Production in China began to slow down its grown and even decrease from 2014.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Beer consumption has great growth potential in China
- With a population of over 1.4 billion people, China has the largest market for beer in the world and the industry's growth potential is considerable.
Biggest companies in the Beer Production in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Beer Production in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Bottled beer, Canned beer and Keg and draught beer. Bottled beer is the largest segment of the Beer Production in China.
Trends and Insights
Bottled beer is popular in high-end markets
- Bottled beer refer to beer products packaged in a bottle. Effective manufacturing costs have made bottled beer the largest product segment in the industry, accounting for an estimated 49.6% of revenue in 2023.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Chinese Alcohol Production in China
- Wine Production in China
- Juice Production in China
- Tea Production in China
Complementors
- Cafes, Bars & Other Drinking Establishments in China
International industries
- Global Beer Manufacturing
- Breweries in the US
- Craft Beer Production in the US
- Breweries in Canada
- Beer Manufacturing in Australia
Table of Contents
About this industry
Industry definition
Industry businesses manufacture fresh, carbonated beer products with a relatively low degree of alcohol (2.5% to 7.5%). The beer is packaged in kegs for sale to pubs, bars, restaurants and hotels. Beer can also be packaged in cans and bottles for sale to wholesale and retail alcoholic beverage distributors, and the hospitality sector.
What's included in this industry?
Pure beerBarley maltWheat maltTurbid beerCompanies
Purchase this report to view all major companies in this industry.
Related Terms
GB4927-91GB/T18916.6GB 19821-2005Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
More expensive tastes drive continual industry development. Instead of sales volume increases, demand for more premium beer works as the major industry development driver.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Bottled beer is the largest product segment. Effective manufacturing costs have made bottled beer the largest product segment, and it is popular in high-end markets.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Shandong is the largest beer production base. Qingdao, where Tsingtao Brewery Company Limited are headquartered, is one of the first regions in China to produce beer, and one...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Industry concentration has increased. Beer consumption habits show a trend of concentration towards mainstream brands. Top enterprises are constantly growing their market sha...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
State-owned companies lead the industry. Three of the top five companies are state owned, and they jointly account for approximately 50% of industry revenue.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Beer production is very reliant on capital. Equipment configurations largely determine the production efficiency and employment of companies due to how mechanized production ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising high-end alcohol demand is prompting industry profitability to rise. The proportion of high-end beer has been increasing, generating more profits for beer manufacturer...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Beer Production industry in China in 2024?
The market size of the Beer Production industry in China is $29.7bn in 2024.
How many businesses are there in the Beer Production in China industry in 2024?
There are 439 businesses in the Beer Production industry in China, which has declined at a CAGR of 1.1 % between 2019 and 2024.
Has the Beer Production industry in China grown or declined over the past 5 years?
The market size of the Beer Production industry in China has been growing at a CAGR of 2.6 % between 2019 and 2024.
What is the forecast growth of the Beer Production industry in China over the next 5 years?
Over the next five years, the Beer Production industry in China is expected to grow.
What does the Beer Production in China include?
Pure beer and Barley malt are part of the Beer Production industry.
How competitive is the Beer Production industry in China?
The level of competition is high and steady in the Beer Production industry in China.
