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I can’t afford beer these days.
Recently, China Resources beer launched two bottles of 999 yuan high-end beer “Li” gift box, with a unit price of nearly 500 yuan / bottle. Although the CEO of China Resources beer said, “Li and Maotai are at the same table, it is not against peace at all”. However, because the price is really beyond the public’s understanding, it is also evaluated as “Mao disease” by netizens.
However, it is not only China Resources beer that is suffering from “Mao disease”, but also the pressure of market competition.
Although the beer market is large, the inner roll is also taking place
In 2020, Zhong Fuying, founder of nongnongshanquan, became the richest man in Asia, amazing the energy of China’s beverage market.
However, compared with tobacco and alcohol, the beverage market is not so huge. According to the data of the National Bureau of statistics, in 2020, the total social retail sales of tobacco and alcohol reached 395.4 billion yuan, nearly twice that of beverages (229.4 billion yuan).
“Beer”, which is most suitable for kebabs, hot pot and fried chicken, firmly occupies the top position in the output of all kinds of drinks and wine with the help of a large audience. In 2020, the total output of beer will reach 34.1111 million kiloliters.
Although the market space is large, there are not many exploitable territories under the eyes.
According to the data of prospective industry research institute, the current five major beer brands (Budweiser, China Resources, Tsingtao beer, Carlsberg and Yanjing Beer) account for 92% of the whole market in 2020.
The data of the whole cargo circle also shows that among all the beer products displayed by B2B e-commerce in China, the products of the five major beer brands account for 57.9%.
Due to the mutual squeeze of peer markets and the impact of the epidemic last year, except Carlsberg, the revenue of the other four major beer brands declined.
All this has also exacerbated the competitive pressure in the beer market, and the “inner roll” is taking place.
Under the pressure of competition, beer suffers from “Mao disease”
The product layout of beer is also changing
Although not all new beer products are like “Li”, they hit consumers’ eyes with high prices. However, it is an indisputable fact that beer brands compete to be the first to “high-end” and layout medium and high-end products.
Especially in 2019, after China Resources beer completed the acquisition of Heineken’s business in China and took the opportunity to challenge Budweiser in the high-end market, Tsingtao beer, Yanjing beer and other brands also followed suit and launched a series of wines such as “Centennial journey” and “Lion King Shitao”, with a high price per bottle.
The price structure of the beer market is also quietly changing.
According to the statistics of the whole cargo circle, compared with last year, the product prices of various brands have changed greatly. The most significant trend is that the proportion of high-grade beer is higher and higher.
Among them, beer with an average price of 15 yuan / L in B2B channels accounted for the largest increase, Budweiser (+ 8.1%), China Resources (+ 10.7%), Tsingtao beer (+ 8.6%), Carlsberg (+ 21.1%) and Yanjing Beer (+ 7.9%). The proportion of beer products of 5-10 yuan / L decreased significantly.
two point two Packaging canning
The first impression of beer is “big green bottle”.
However, from the perspective of gross profit, canned products are higher than bottled products, and the drinking scene of canned beer is richer. Therefore, “increasing the canning proportion of products” has become a means for beer enterprises to improve profits and deal with internal volume.
According to the data of the whole cargo circle, at present, canned beer accounts for 54.0% of the whole market, higher than bottled and barreled beer.
However, after analyzing the packaging types of beer products sold through B2B channels, it is found that the proportion of canned products sold by the five major beer brands (except Carlsberg) in 2021 is higher than 50%. But compared with last year, the biggest reason may be the recovery of catering channels. The epidemic had a great impact on restaurants, so there were few bottled products in B2B channels at that time.
Can Wang Yibo and CAI Xukun save the “anxiety” of beer?
If the saturation of its own market is a major challenge for beer brands, the shrinkage of the overall market is a greater crisis.
According to the data released by the National Bureau of statistics, China’s beer production has been gradually declining since 2013. The annual beer production in 2020 was 34.1111 million kiloliters, a decrease again compared with last year.
Where is the increment of beer market?
Young people with strong spending power are regarded as the next incremental market.
In order to seize this highland, many beer brands have chosen a group of “traffic stars” as their spokesmen.
In May 2020, Wang Yibo became the spokesman of Yanjing beer. After the expiration of the contract, Wang Yibo joined hands with China Resources beer to become the spokesperson for daring to venture into the world. Yanjing Beer chose another “top stream” Cai Xukun after saying goodbye to Wang Yibo.
Behind the “traffic star” is the support of post-90s and post-00s fans. Although choosing their endorsement will help to make the brand younger, because most of the fans of “traffic stars” are women, the real ability to carry goods remains to be seen.
Where is the next “breaking point”?
Current drinking channels such as catering and night show have always been regarded as the main terminal occasions for beer sales.
However, according to the data of Tsingtao beer, affected by the epidemic, the proportion of sales volume of current drinking channels is declining in 2020, from 60% to 45%. The proportion of non current drinking channels such as Ka and circulation increased by 15%.
Due to the impact of the epidemic, beer consumption is also changing – except at the dinner table, the proportion of consumers drinking at home or other places is increasing.
In the post epidemic period, how long does it take for the current drinking channel to return to the pre epidemic level? This is a problem in front of every beer enterprise.
At the same time, looking for new consumption scenarios and how to make efforts in non current drinking channels are also topics being explored by major beer brands.
Short video channel: with the popularity of short video app, major beer brands have also begun to try in this regard.
Tiktok tiktok (Tsingtao Brewery), Yanjing Beer (12.9w) and Carlsberg (Carlsberg) have been running for some time in 18.7w, and have a good amount of fans. Huarun snowflake has also opened its official flagship store.
Retail store channel: as one of the infrastructure of residents’ daily life, retail stores are paid more and more attention by beer brands.
According to the data of the whole cargo circle, the single purchase amount of beer by small retail stores (including small supermarkets, grocery stores, etc.) is 309.4 yuan.
From the perspective of purchasing goods, small stores prefer to buy canned beer and small bottled beer compared with canned beer.
To sum up, according to the observation and arrangement of the whole cargo circle, a great change is taking place in the beer industry.
Due to the demand for consumption and the increase of costs, and the impact of COVID-19 in 2020, the whole beer market is showing four trends: 1. high-end products, 2. packaging cans, 3. celebrity endorsements, and 4. channels of diversification.
At the same time, it has to be said that when everyone is perceiving “consumption upgrading”, although Xi tea and Naixue tea are applauded, they continue to lose money, while honey snow ice city continues to make profits with its ultra-high cost performance. For beer, is high-end the best way out?
At present, we continue to pay attention to whether the beer market leader can still maintain the leading position and which brands will realize “overtaking in corners”!
Author: Wei Shujun; Source: Huoquan (ID: hqqapp), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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