ME.A Newsletter August

Transcription

1 2014 August Asia is Big Beer Far East as World s Dominant Beer Producer Asian breweries can be expected to grow further and strengthen their global position as beer production in Asia is driven by dynamically growing consumer demand

2 Consumer Goods Beverage Asia is Big Beer Far East as World's Dominant Beer Producer Out of a global beer production of close to 2bn hectolitres (hl) in 2013 Asia contributed 36%. China is by far the world's biggest beer producer and the market highly concentrated. Asian breweries can be expected to grow further and strengthen their global position as beer production in Asia is driven by dynamically growing consumer demand. The biggest beer market by output is Asia (see table 1). According to the latest Barth Report Asia produced 771 million hl of beer or 36% of world production. Second come the Americas with 29% followed by Europe with 27%. Table 1: Beer output volumes, regions (1'000 hl), 2013 Region Share of world beer production Change % European Union 388' ' % -1.2% Rest of Europe 162' ' % -7.9% Europe total 551' ' % -3.2% North America 332' ' % -1.9 Central America / Caribbean 16'871 17' % 2.0% South America 223' ' % 3.5% Americas 572' ' % 0.3% Asia 692' ' % 2.8% Africa 125' ' % 6.0% Australia / Oceania 21'591 21' % 0.7% World Total 1'961'974 1'972' % August 2014 Page 2 ME.A

3 Chart 1: Beer output volumes by region, % 1.1% 27.0% Europe 36.1% Global beer volume 1'972'972'000 hl Americas Asia Africa Australia/Oceania 29.1% On a country basis China is by far the world's biggest beer producer with almost 26% of global production in 2013 or 507mn hl (see table 2). Second with less than half the output of China comes the US with 11.4% of global output followed by Brazil (6.9%), Germany (4.8%) and Russia (4.5%). Not only is China the biggest amongst the top five global beer producers but also grew output fastest between with 3.2% or million hl. Growing at 7% per cent annually (CAGR ) China has doubled its beer output in little more than a decade and overtook the US as the world's leading beer producer. August 2014 Page 3 ME.A

4 Table 2: World's leading beer producers (1'000 hl), 2013 Country Growth Share of world beer production China 490' ' % 25.7% USA 230' ' % 11.4% Brazil 132' ' % 6.9% Germany 94'618 94' % 4.8% Russia 97'600 88' % 4.5% ROW 916' ' % 46.8% World 1'961'974 1'972' % Chart 2: Beer output volumes by country, % 53.2% of global beer production from top five countries 25.7% 11.4% China USA Brazil Germany Russia 4.5% 4.8% 6.9% ROW A closer look at Asia reveals huge differences between the countries' beer production: China dwarfs other leading beer producers in the region. The country's output in 2013 (507mn hl) was almost nine times that of the second largest producer, Japan (57mn hl) (see table 3). Vietnam (31mn hl) comes third producing about half the volume of Japan, followed by Thailand (23mn hl), South Korea (21mn hl), India (20mn hl) and the Philippines (15mn hl). August 2014 Page 4 ME.A

5 Table 3: Asia's leading beer producers (1'000 hl), 2013 Country Growth Share of world beer production China 490' '500 3% 25.7% Japan 57'675 57'200-1% 2.9% Vietnam 29'800 31'300 5% 1.6% Thailand 23'700 23'100-3% 1.2% South Korea 20'313 20'920 3% 1.1% India 19'500 19'900 2% 1.0% Philippines 15'800 14'600-8% 0.7% Taiwan 5'460 5'163-5% 0.3% Cambodia 4'000 4'400 10% 0.2% Malaysia 2'840 2'990 5% 0.2% Indonesia 2'650 2'800 6% 0.1% Laos 2'196 2'662 21% 0.1% Myanmar 1'100 2' % 0.1% Sri Lanka 1'200 1'250 4% 0.1% Singapore 1'100 1'155 5% 0.1% Hong Kong % 0.0% World 1'961'974 1'972' % Chart 3: Asia's largest beer producing countries, share in Asian production % 8.5% 3.4% 3.1%3.0% 4.6% Top Asian beer producers with 675mn hl or 34.1% of global output China Japan Vietnam Thailand South Korea 75.2% India Philippines August 2014 Page 5 ME.A

6 Finally, considering the league table of the world's 20 biggest brewery groups (see table 4) two industry trends become apparent: 1. Concentration As a consequence of the on-going global beer industry consolidation the world's top five brewery groups (AB InBev, SABMiller, Heineken, Carlsberg, CRB) control more than 50% of global output. This concentration is even more pronounced in the largest beer market by output, in China. Here five brewery groups (CRB, Tsingtao, AB InBev China, Yanjing and Carlsberg) have a combined market share of 68%. 2. Strong Asian players In 2013 half or ten out of the global top 20 brewery groups were based in Asia. Together these groups accounted for 20% of the world's beer production in that year. With the fast paced dynamic growth of Asian beer markets brewery groups in the region will further strengthen their position and claim a larger share of global production. Driving beer production in Asia is strong consumer demand fuelled by a rapidly growing population, a strengthening middle class with higher disposable incomes and changing lifestyles. In summary, Asia is the world's biggest beer market by output and growing dynamically. Leading breweries in the region are amongst the top global players and can be expected to continue grow rapidly as the industry consolidates. China as the biggest beer market where the top five breweries dominate serves as an indication for what to expect in the rest of Asia. On the demand side an expanding middle class across Asia- Pac with increased disposable incomes and changing lifestyles propel beer consumption to new heights. We at ME.A Market Expansion Asia can support you to make sense of market data and, thus, help you gain a deep understanding of underlying drivers and local business conditions. Your successful market expansion in Asia starts here. August 2014 Page 6 ME.A

7 Table 4: World's leading brewery groups (million hl), 2013 Rank Brewery Country Output Share of world beer production 1 AB InBev Belgium % 2 SABMiller United Kingdom % 3 Heineken Netherlands % 4 Carlsberg Denmark % 5 China Res. Snow Breweries (CRB) China % 6 Tsingtao Brewery Group China % 7 Molson-Coors USA/Canada % 8 Yanjing China % 9 Kirin Japan % 10 BGI/Groupe Castel France % 11 Efes Group Turkey % 12 Asahi Japan % 13 Gold Star China % 14 Diageo (Guinness) Ireland % 15 Polar Venezuela % 16 San Miguel Corporation Philippines % 17 Singha Corporation Thailand % 18 Petropolis Brazil % 19 Oriental Brewery South Korea % 20 Saigon Beverage Corp. (SABECO) Vietnam % Total Top 20 1' August 2014 Page 7 ME.A

8 ME.A Market Expansion Asia ME.A is a market expansion services firm offering client advice and support to small and medium sized enterprises on markets and market entries in Asia. We give our customers access to Asian market insights, showing them in-roads into new geographies and help them grow their business in Asia successfully. With our offices in Switzerland and in Malaysia we speak your language and are deeply rooted in Asia able to leverage our expertise to your best advantage. ME.A. Your bridge to growth in Asia. Asia ME.A Market Expansion Asia Sdn Bhd ( D) No. 1-3A Jalan Solaris 2 Solaris Mont Kiara Kuala Lumpur, Malaysia P F Europe ME.A Market Expansion Asia Ltd. Muehlebachstrasse Zurich, Switzerland P F info@me-a.com Follow us LinkedIn: linkedin.me-a.com Xing: xing.me-a.com Facebook: facebook.me-a.com August 2014 Page 8 ME.A

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