Growth in the China beer market was lower in 2012, although still higher than most Western markets. More brewers are entering the premium beer sector to offset the thinning margins in mainstream and discount beer. 2012 sales growth was mainly hampered by fiercer competition, rising costs in labor, packaging and raw materials. The lower GDP growth rate this year also had a negative influence on beer consumption.
China has the world's highest overall consumption, but leading brewers face an uphill struggle to find strong profits. Given the country's preference for high-strength baijiu, health and safety issues associated with alcohol are a concern. Increased taxes coupled with media and industry promotions for healthier drinking habits have meant more consumers are choosing lower-strength alcohol.
On 15 April 2012 China's adjusted tax on imports came into effect, which means stricter control on goods coming into the Chinese mainland. According to the latest revision, tax equal 50% has been imposed on wines, beer and other sprits and tobacco.
For more information on the China beer market, please click here: China beer market
Follow us on Twitter now @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.