Domestic beer fatigue savior - making fresh customization mainstream

Release time:

10 Aug,2016

Domestic beer has shown signs of fatigue in recent years. With the improvement of people's living standards, people have started to be dissatisfied with blended beer and bottled beer, aiming to develop personalized and high-end products in response to new consumer demands. Craft beer has become a rising star in the beer industry due to its freshness and purity, as well as the endless fun of the brewing process. Currently, the lack of industry standards for craft beer hinders its rapid development. Currently, craft beer is just an attempt to upgrade beer products for beer companies, and there is still a long way to go in the future.



Budweiser InBev also announced at the beginning of this year that it will introduce three fine wines: Goose Island IPA, 312 Wheat Air, and Honker Air. In addition, several leading domestic beer companies are also launching their own craft beer products.

Not only that, beer houses with craft brewing as their main focus have sprung up like bamboo shoots after rain. In Beijing alone, there are dozens of breweries such as Kumbat and Panda Craft. Among them, Kumbart successfully obtained financing at the beginning of this year and was favored by many young entrepreneurs, which also indicates that the value of craft beer has been recognized by capital.

Zhu Danpeng, a researcher in the food and beverage industry at the Chinese Brand Research Institute, said that since 2014, the growth momentum of the beer market for more than 20 consecutive years has suddenly come to an end, and on the contrary, it has shown a weak trend. Therefore, beer companies have shifted their attention from running errands to the product itself, aiming to meet the needs of current consumers through personalization and high-end, and craft beer has also adapted to the trend, It has been favored by major manufacturers.

Personalized beer trend

According to a report released by management consulting firm Bain and global market research firm Kantar Worldpanel, last year there was a severe decline in product consumption in China for the blue-collar class. In terms of consumption amount, beer decreased by 3.6%, with the decline in cheap beer consumption significantly higher than that of high-end beer. Another piece of data points out that beer consumption is transitioning from an incremental stage to an increasing quality stage, with differentiated, low concentration, and high-quality beers becoming the trend of consumption upgrading. The main outbreak points of quality upgrading may be in draft beer and canned beer.

According to industry insiders, young consumers are more interested in personalized and high-end categories, and this group determines the future direction of the domestic beer market. Craft beer has gained the favor of young consumers due to its small production capacity and personalized taste.

In addition, in recent years, domestic beer production has reached a bottleneck period, and imported beer has continuously squeezed market share. Amidst domestic and foreign troubles, domestic beer companies have had to plan product upgrades. According to data, the gross profit margin and net profit margin of domestic craft beer can reach 50% and 30% respectively, significantly exceeding the level of the mature industrial beer market, which has also attracted the attention of beer companies and entered this field one after another.

Zhu Danpeng believes that in the past, the product system of Chinese beer presented a trapezoidal structure, with only the base and waist of the tower. However, the emergence of craft beer categories has formed a relatively complete and complete pyramid structure of domestic beer products, which also means that the Chinese beer industry has entered a relatively complete and complete product stage.

Industry standards urgently need improvement

It is understood that the market share of craft beer in China is currently less than 1%, while last year, the market share of craft beer in the United States reached 12.2%. According to industry forecasts, the estimated market capacity of craft beer in China this year is expected to reach 2% -3%, with promising growth potential. It is worth noting that due to the rapid development of craft beer, there is a lack of mature industry standards and regulations in China that correspond to it.