Beer industry revenue in China increases at an average of 12.1%

Over the five years through 2012, revenue for the beer production industry in China has been increasing at an average annualised rate of 12.1% to total $28.8 billion, according to IBISWorld. The industry concentration level has increased in the past decade and new industry leaders have emerged in recent years. Industry competition mainly occurs among the three national beer brands, Snow, Tsingtao and Yanjing. The main beer enterprises have expanded their production scope and acquired other small firms to enlarge market share and promote their brand names throughout China.

Tsingtao Beer has beer production facilities across China and sells its products at the national level. China Resources Snow Breweries has acquired small beer companies and enlarged its scope by attracting foreign capital. Snow Beer now has integrated its markets and manages its sales into four large regions: North China, North East China, East China and South West China. Amongst the top three companies, Yanjing Beer is the only firm with no foreign capital. At present, Yanjing Beer's main market is Beijing.

Following rapid growth in the past few years, IBISWorld Inc. anticipates that the beer production industry in China will enter the mature phase of its life cycle over the next five years. Surplus beer production capacity and intense competition will lead to the further consolidation of the industry. For more information, visit IBISWorld’s Beer Production in China industry report page.