The trend of high-end beer industry in 2021 looms
In April, all beer companies except Yanjing Beer have disclosed their 2020 annual reports. The reporter sorted out the annual transcripts of beer companies and found that many beer companies had lower sales in 2020, with weak or even declining revenue growth, but their net profit showed an increase. Industry insiders believe that the overall situation of the Chinese beer industry is showing a decline in volume and an increase in price. The trend of high-end development is gradually becoming significant, and the industry pattern will continue to be concentrated.
In April, all beer companies except Yanjing Beer have disclosed their 2020 annual reports. The reporter sorted out the annual transcripts of beer companies and found that many beer companies had lower sales in 2020, with weak or even declining revenue growth, but their net profit showed an increase. Industry insiders believe that the overall situation of the Chinese beer industry is showing a decline in volume and an increase in price. The trend of high-end development is gradually becoming significant, and the industry pattern will continue to be concentrated. Volume decline and price increase
Reporters flipped through the 2020 annual reports of several beer companies and found that a decrease in sales and an increase in profits have almost become a common feature among beer companies. Specifically, in 2020, China Resources beer sales decreased by 2.9% year-on-year, while net profit increased by 59.6% year-on-year; Qingdao beer sales decreased by 2.9% year-on-year, and net profit increased by 18.86% year-on-year; The sales volume of the Pearl River Beer dropped 4.65% year on year, and the net profit rose 14.43% year on year.
According to data from the National Bureau of Statistics, the domestic beer production from 2018 to 2020 was 38.1224 million kiloliters, 37.653 million kiloliters, and 34.1111 million kiloliters, with a year-on-year decrease of 13.4%, 1.23%, and 7.04%, respectively. At the same time, the total consumption of beer in the domestic beer market reached 53.94 billion liters in 2013 and continued to decline.
He Yong, Secretary General of the China Brewery Association and Chairman of the Beer Branch, believes that the decline in domestic beer production last year was significantly related to the impact of the epidemic. Compared to other consumer goods industries, the 7.04% drop is not significant and belongs to the normal range. Currently, the size of the Chinese beer market has entered a stable period, and there will be no significant changes in quantity in the future.
Compared to the continuous decline in sales, beer prices have increased. Data shows that the ton price of Chinese beer manufacturers was 2490 yuan/ton in 2011, and by 2019 it had risen to about 3218 yuan/ton, an increase of about 29.24%. Meanwhile, the average retail price of beer products in China has significantly increased since 2015, from 4.07 yuan/bottle that year to 4.77 yuan/bottle in 2020, an increase of approximately 17.2%.
Beer marketing expert Fang Gang stated that the common feature of the beer industry in the past few years has been a decline in quantity, an increase in price, and an increase in profit. This feature has gradually become normalized since 2011. Because the scale of beer production has reached its peak, the growth of product quality and sales profit has become a goal pursued by the industry. In addition, the wave of consumption upgrading has also led to liquor companies constantly seeking profit growth points.
Guojin Securities pointed out in its research report that beer sales are expected to achieve recovery growth in 2021, and under cost pressure, the industry's willingness to raise prices is increasing, and the cost allocation is becoming more rational. In the next 3-5 years, beer demand will still be in a weak recovery stage, and "high-end+improved operational efficiency" will remain the core development trend.
High end is king
In the context of a decline in quantity and an increase in price, many liquor companies are deploying high-end beer. According to Euromonitor data, the domestic mid to high-end beer market is constantly expanding, and the market share of high-end beer has increased from 9.5% in 2010 to 25% in 2016. The reporter found that in the annual reports of various beer companies in 2020, high-end has become a major keyword.
According to the annual report data, in 2020.