Premiumization is the most significant trend influencing the global beer market. However, the trend is mainly supported in developing economies such as APAC by the aspirational middle-class population with high disposable income. This population segment has a penchant for premium quality beers. The rising consumer interest to explore unique and exciting products is further driving the demand for premium and high-quality beers.
The emergence of craft beers and microbreweries in emerging economies such as India and China is another major factor driving the demand for low-alcohol drinks and flavored beers in the region. Although the craft beer market in APAC is at a nascent stage, the willingness of consumers to pay a high price for innovative drinks is supporting the growth of the market. The craft beer market share in APAC accounted for approximately 5% of the total market in the region. Also, the growing number of microbreweries across the area is supporting APAC beer market growth.
The introduction of gluten-free, low calorie, low alcohol, and non-alcoholic beers is expected to drive the growth of the market during the forecast period. Consumers are increasingly shifting toward gluten-free beers, which are made of millet, barley malt, rye, corn, potato, rice, soybean, and sorghum. Hence, the growing innovation in flavors and preparations is likely to drive the APAC beer market. The APAC beer market is expected to grow at a CAGR of over 4% during the period 2018–2024.
APAC BEER MARKET SEGMENTATION
The research report includes detailed market segmentation by
INSIGHTS BY BEER TYPE
The craft beer segment constituted a small percentage of the APAC beer market. However, the growing demand for low-alcohol drinks and flavored beers is expected to drive the segment during the forecast period. Craft beers are typically popular due to their enhanced quality, flavor, and brewing technique. The increasing awareness of various forms and styles of beer is also driving the APAC beer market. Although China has the largest market for craft beer in the APAC region, countries such as India, Thailand, and the Philippines are likely to witness growth during the forecast period.
The mass-produced beer segment accounted for the highest market share of the APAC beer market. Factors such as rapid economic development, growing disposable incomes, and changing consumption patterns have developed new opportunities for alcoholic beverages in the Asian market. Further, Southeast Asian countries have witnessed a significant increase in beer sales due to the growing young population, changing preferences from spirits to beers, rapid urbanization, and increasing marketing activities aimed at the young community.
INSIGHTS BY DISTRIBUTION
On-premise sales of beers are slightly less than off-premises sales in the APAC region. On-trade sales are higher in Vietnam, Singapore, South Korea, and Malaysia as consumers prefer to drink outside in social gatherings and parties. A majority of foodservice outlets in these countries serve beers and other alcoholic drinks. However, in Thailand, India, and China, off-trade sales are high as consumer groups tend to drink beer in social and family gatherings.
The off-premises market focuses on in-store promotions and other activities such as discounts, promotions, and tastings for selective products. The off-premises sale of beers in APAC is expected to reach approx 49 billion liters in 2024. However, the emergence of craft beers is expected to merge a significant challenge for off-premise sales.
INSIGHTS BY CATEGORY
In the APAC beer market, premium beer categories are relatively underdeveloped than global standards. However, they are anticipated to grow faster than the overall market in the region. In China, the premium beer category has been resilient to the recent economic growth as consumers increasingly seek out for products that offer “more” in term of flavor, strength, and variety. The trend of premiumization is expected to increase the growth potential of the market in terms of value and volume. South Korea, Australia, and India are also witnessing the trend of premiumization. In South Korea, steady economic growth and a high level of disposable income are supporting the growth of premium beer categories. In India, the affluent urban and middle-class population is driving the premiumization trend in the market.
The mainstream beer segment, which comprises value or economy beers, has been witnessing sluggish growth in the APAC region. The introduction of craft and flavored beers and the increasing availability of premium beers in the market have led to the shift in consumer preferences. The demand for mass or value beers is expected to grow in India, Vietnam, the Philippines, Thailand, and Singapore, due to their price and affordability. India, the Philippines, Thailand, and Vietnam are expected to witness the highest absolute growth in mainstream beer products during the forecast period.
The demand for premium beer products is expected to come from Australia, Japan, and China. However, India, the Philippines, Thailand, and Vietnam are likely to witness substantial growth in mainstream products during the forecast period.
INSIGHTS BY PACKAGING
Packaging of alcoholic beverages needs to follow not only labeling regulations but also to attract consumers’ attention. Glass bottled packaging is a popular type and accounted for the largest market share. Green and brown colors are commonly used for packaging of beer products as these colors prevent the entry of ultraviolet rays. Further, the process of labeling is also easy. The bottle packaging is considered as environment-friendly as bottles can be recycled and reprocessed.
Metal cans are the fastest-growing segment for beer packaging. Metal cans, especially aluminum ones, are portable, lightweight, and convenient to store beverages and drinks. The China beer industry is shifting toward metal cans as they are considered portability and eco-friendly. Similarly, Thailand, Japan, Taiwan, South Korea, and Vietnam are the key market for aluminum cans in the APAC region.
Kegs, barrels, and pet bottles are other beer packaging types. Constant innovations in beer packaging are driving the other beer packaging in the region. Pet bottled beer packaging is experiencing significant growth in the region as they are easy to carry and highly portable.
INSIGHTS BY GEOGRAPHY
China accounts for the largest beer market in the world. In term of volume, the market is almost twice the size of the US. China dominates the APAC beer market both in quantity and revenue. Although the volume sales of beer in China have declined in the last five years, the market is expected to witness growth during the forecast period due to macroeconomic trends and changing consumer attitudes.
In terms of value and volume, the market in Japan is the fourth largest market globally, and the second-largest in the APAC region. The beer market in Japan is mostly stagnant; the craft beer segment is rapidly growing among Japanese consumers. The introduction of new regulations and policies, which has risen the price of beers, has led consumers to shift toward other alternatives such as spirit-based drinks, ready to drink, and non-alcoholic beers. Another major trend in the Japanese beer market is the growing demand for craft beers in the country. Craft beers are increasingly gaining popularity among millennials, the high-income population, and women in the country.
The Australian beer market is relatively large and stable and is comparatively mature due to the high per capita consumption rate in the country. The beer market in Australia is one of the most profitable markets in the world due to the high per capita consumption and the rise in per capita GDP. India is one of the largest and fastest-growing beer markets in the APAC region. In terms of volume, the beer market in India is the fourth largest in the APAC region, with approximately 5% of the market share in 2018. The growing middle-class population in the country is expected to support the growth of the market during the forecast period.
KEY VENDORS ANALYSIS
The APAC beer market is highly competitive. These vendors are expected to continue dominating the APAC beer market due to their established presence, high reputation, stable capital funding, and high expenditure on promotions and expansion acclivities. The market vendors in the region are competing in terms of product quality, product innovation, and competitive pricing. Thus, consumer choices and preferences differ across regions and keep changing over time in response to geographical, demographic, and social trends, economic circumstances. Due to the highly competitive and volatile environment, future market growth mainly depends on the ability to anticipate, gauge, and adapt to the constantly changing market trends and successfully introduce new or improved products promptly. China Resources Beer Holding Company, Tsingtao Brewery, Anheuser-Busch InBev, Beijing Yanjing, Carlsberg are the leading vendors in the market.
The APAC Beer market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by Type
- Glass Bottles
- Aluminum Cans
- South Korea