China's Beer Industry Development of 2008

China's Beer Industry Development of 2008

The sales income of China’s beer industry was 91.099 billion yuan, an increase of 16.30 per cent year-on-year, and the total profit was 5.815 billion yuan, an increase of 21.01 per cent year-on-year between January and November in 2007. Due to the rising price of barley in domestic and international market, the gross profit ratio of beer industry declined to 33.43 per cent, down 1.39 per cent year-on-year.

From January to February of 2008, the entire incomes and profits of China’s beer industry were up 16.2 per cent year on year, particularly, the incomes and profits of beer were up 25.0 per cent and 25.7 per cent in Shandong Province, which is relatively faster than the average growth rate, occupied 19.1% and 78.6% of the whole industry income and profits.

China's beer production has maintained a great growth in 2007; the total output was 39.31 million tons, an increase of 11.8 per cent year-on-year. From 1991 to 2007, China's beer production increased by 391 per cent, with an average annual growth rate of 10.7%.

At the current stage, the homogenization of beer products is still in a relatively high level in China; price is the core element for the beer sales. However, the restructure of beer productions is a key factor for beer production competition; high quality beer will be the new tread in the beer market. Meanwhile, small bottle and low-alcohol beer is also the developing trends.

Nearly half of the beer barley is imported from Australia, Canada, France and so on. In 2007, the barley price has risen sharply in international market, and other raw materials prices also have a certain growth, both factors have contributed the rising price of beer. Leading manufactories have the approaches to keep their cost lower, but small manufactories will have a big suffer from the high cost.

Thus, in the next 10 years, a few mega beer manufactories will be created and share the most domestic beer market, some small regional beer manufactories will be out of the market.

1 Analysis of beer industry between 2007 and 2008
2 Analysis of supply between 2007 and 2008
3 Analysis of demands
3.1 The relationship between beer consumption/PC and income/PC
3.2 The increasing income has demanded the high quality beer
3.2.1. The types of beer
3.2.2 Consumption structure will affect the beer industry
4. Analysis of the rising beer prices and raw materials prices
4.1 The rising price of beer
4.2 Analysis of the rising price of raw materials
4.3 The approaches of deal with the increasing raw materials prices of leading beer manufactories
5. The structure of the beer industry
6. Beijing Olympic will contribute the consumption of beer
6.1 The beer sales will increase in a short term
6.2 The increasing of brand value in a long term period
7 Main manufactories
7.1 Qingdao Beer
7.2 Yanjing Beer

Charts
Figure: China beer industry revenue and profit growth ratio and gross profit ratio between 2002 and 2007
Figure: The profits and incomes of china’s beer industry in January and February of 2008
Figure: The capacity of beer production between 1987 and 2007
Figure: The output of the world's leading beer manufactories
Figure: The increasing output of beer in January and February of 2008
Figure: The data of the disposable income of urban residents and rural residents net income growth between 1997 and 2007
Figure: The change of price of Tsingtao Beer and Yanjing Beer
Figure: The cost of beer
Figure: The price of import barley between 2007 and January of 2008
Figure: The price of Australian barley between 2007 and January of 2008
Figure: The data of Australia barley capacity, export and the average price
Figure: The market share of Qingdao Beer, Yanjing Brewery, Xuehua beer and Chongqing Beer between 2003 and 2007
Figure: The sales of the three leading beer manufactories
Figure: The gross profit ratio of Qingdao Beer, Yanjing Beer and the beer industry
Table: Comparison of beer consumption between developed regions and underdeveloped regions (2006)
Table: Classification of beer grade
Table: The prices of various types of beer recently
Table: The capacity of three U.S. leading beer group
Table: Merger of beer industry
Table: The main brands of major cities in China
Table: The main market of Qingdao Beer, Yanjing beer and Chongqing beer
Table: The statistics and forecast of Yanjing Beer between 2006 and 2008