China Beer Market Report 2010.pdf

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 7/23/2010 GAIN Report Number: CH0409 China - Peoples Republic of Post: Beijing ATO China Beer Market Report Categories: Beverages Approved By: Eric Trachtenberg Prepared By: Angie Han Report Highlights: China’s beer industry is the largest in the world by production volume. In 2009, China’s beer production increased by 4.9 percent to 43 billion liters, up five percent from 41 billion liters in previous year. Based on available trade figures, annual per capita beer consumption is estimated at around 36.5kg per year. This is less than half levels found in rich countries. Despite steady market growth, imported beer volumes are still a very small share of the market. At a little over 28 million liters in 2008, they supply less than one percent of consumption. However, there is tremendous opportunity for growth for U.S. exporters who can position their products effectively. General Information: Production According to Chinese statistics and industry sources, local beer production reached 43 billion liters in 2009, up five percent from 41 billion liters in 2008. These five percent increases over the last two years marked a significant slowdown from an average 10 percent growth in the preceding three years. The sluggish production increases in 2008 and 2009 were attributed to the economic slowdown, the Sichuan earthquake and severe winter weather conditions. Although full official data are not available yet for 2009 on production, export and imports, local sources confirm the market has been very strong. This has been particularly good for American craft beer sales, which are expected to double in 2010. Table 1: China’s Beer Production, Imports and Exports Milli