Traditional beer industry has flooded into "troublemakers" and craft beer has gradually become a new favorite


Release time:

10 Aug,2016

Currently, China is already the world's largest beer consumption market, but it is worth mentioning that compared to the mature industrial beer market, why is the relatively niche craft beer popular in the domestic market, attracting the attention of capital, and eager to enter this field? Severe homogenization of industrial beer categories

Craft beer market is gradually becoming a new darling of capital.

   

With the arrival of summer, people drinking beer are indispensable in streets, alleys, restaurants, and bars. However, besides well-known beer brands such as Yanjing, Qingdao, Snowflake, Budweiser, Carlsberg and other large industrial enterprises, another type of beer called "craft beer" (also known as handmade beer) is becoming increasingly popular.

The so-called craft beer means hand brewed beer. It is different from common industrial beer, and its unique raw material formula and independent brewing process are highly sought after by consumers. However, due to its European origin, craft beer was once a patent for imported brands. In the past, Chinese consumers could only buy expensive craft beer in bars and imported supermarkets

Due to the exquisite brewing process, formula, taste, and raw materials of craft beer, its personalized taste is incomparable to industrial beer brands such as Budweiser, Yanjing, Qingdao, and Xuehua that are produced in large quantities. A hundred types of craft beer can produce a hundred different flavors. This diverse and personalized taste is highly recognized and favored by beer consumers who pursue quality and taste. However, some industrial beers in China, although there are many categories, have very serious homogenization, which is no longer in line with the current characteristics of consumers pursuing novelty

With the deepening recognition of craft beer in the market, in recent years, there has been a wave of craft beer craze in China, with large and small craft beer manufacturers and breweries springing up like mushrooms after rain. The increasingly bustling craft beer market has seen many capital opportunities and entered the field.

In the past two years, many people have come to cooperate with us, most of whom are small and micro enterprises. These enterprises come from all over the country, including cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong and Taiwan, as well as from various provinces and cities such as Henan, Xinjiang, Inner Mongolia, Ningxia, etc

The main reason why capital has invested heavily in the craft beer industry is that compared to industrial beer, craft beer has a higher profit margin. Data shows that 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.

Correspondingly, since 2014, the growth momentum of China's beer market for more than 20 consecutive years has abruptly stopped, showing a weak trend. In 2015, beer sales continued to decline. Data shows that in 2015, the production of China's beer industry was 47.1572 million kiloliters, a year-on-year decrease of 5.06%, with a reduction of 2.5141 million kiloliters, the lowest in nearly five years. In the past few years, the number of imported beers has skyrocketed.

In the increasingly saturated market, the beer industry is in a state of low profit. Craft beer significantly exceeds the profitability level of the mature industrial beer market, which is one of the important reasons for attracting the attention of many capital and entering this field

Another important reason for attracting capital investment is the promising market prospects for the future development of the craft beer industry. Whether viewed from the domestic market or the foreign market, the industry feels the good development momentum of the craft beer industry and is generally optimistic about its future market development prospects.