{"id":7564,"date":"2024-01-19T12:00:35","date_gmt":"2024-01-19T12:00:35","guid":{"rendered":"https:\/\/brandgenetics.com\/?p=7564"},"modified":"2024-01-19T12:02:01","modified_gmt":"2024-01-19T12:02:01","slug":"cheers-%e5%b9%b2%e6%9d%af-alcohol-is-going-premium-in-china-the-beer-round","status":"publish","type":"post","link":"https:\/\/brandgenetics.com\/pt\/cheers-%e5%b9%b2%e6%9d%af-alcohol-is-going-premium-in-china-the-beer-round\/","title":{"rendered":"Cheers! \u5e72\u676f! Alcohol Premiumisation in China: The Beer Round"},"content":{"rendered":"

Welcome to the Middle Kindom<\/h2>\n

The Chinese name of China is \u4e2d\u56fd\u00a0 (pronounced \u2018zhong guo\u2019) which translates literally to \u2018Middle Kingdom\u2019. This dates back to ~1000BC when the Chinese were in relative isolation from the rest of the world, separated by the Himalayan mountains in the southwest, the Gobi Desert to the north and the Pacific Ocean to the east. As such, Chinese people assumed they were at the centre of the world, and aptly named their country the \u2018Middle Kingdom.\u2019 Our goal in this blog is to provide everyone with bite-sized insights into China\u2019s Culture, Customs, and Consumers.<\/em><\/span><\/p>\n

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Cheers! <\/strong>\u5e72\u676f! Alcohol is going premium in China: The Beer Round<\/strong><\/h2>\n

If you\u2019ve read any of our Middle Kingdom pieces, you\u2019ll know by now that China\u2019s middle class is growing rapidly, and their consumption habits are becoming ever-more discerning (read more on Rational Spending here<\/a>). As the largest beer market in the world<\/a>, it\u2019s no surprise to see increased spending power translate into a desire for unique and premium propositions across beer in China.<\/p>\n

State of Play – Beer<\/strong><\/h3>\n

Domestic \u2018macro\u2019-producers CR Snow and Tsingtao currently hold the most market share with 23.2% and 16.4% respectively with the regional arm of AB InBev, Budweiser APAC (and its 50 brands) following closely behind at 16.2% (2021<\/a>). These producers predominantly brew the light lagers that have long been the preferred flavour profile in China. As the market matures and consumers search for novel drinking experiences, producers have begun turning their attention to more premium beer offerings via immersive experiences and innovative experimentation with ingredients and flavours. Microbreweries have also exploded in popularity across the country, initially in larger metropolitan cities but now even in remote towns in faraway provinces<\/a>.<\/p>\n

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Consumption occasions are shifting\u2026<\/strong><\/h3>\n

Beer has always been considered one of the more casual alcohol offerings in China and is consumed in relaxed social settings. The light flavour profile of most popular beers (e.g. Snow, Qingdao, even Budweiser) is the perfect accompaniment for the oily and spicy food found in China but this has driven the perception that is merely the support act to the main event of delicious food. Similarly, in occasions without food where beer is popular, for example during karaoke, beer acts as a social lubricant rather than being the focus of an occasion.<\/p>\n

Shifts to interest in crafted and premium offerings with a broader flavour profile also mean a shift in the occasions and locations where beer is being consumed. Local brewpubs have opened across China\u2019s larger cities offering a large selection of crafted beers brewed on-site often in unique flavours to beer, but familiar to the Chinese palate e.g. jasmine tea beer, cheese tea beer (!), Sichuan peppercorn and durian fruit. These brewpubs, which have minimal food options, bring beer to the front and centre of the occasion, offering young Chinese consumers a new destination for socialising but also a completely immersive drinking experience that justifies a premium price point.<\/p>\n

An emerging trend for premium beer is the solo at-home occasions. The COVID pandemic accelerated drinking at home behaviour as out-of-home socialising was extremely limited for an extended period. Now, consumers are often turning to alcohol to help them wind down in the evenings. The growth of this occasion has created space for new beer propositions with a focus on flavour and the sip and savour experience to flourish.<\/p>\n

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Premium Beer Brands Winning in China<\/strong><\/h3>\n