Market Trends of Asia-Pacific Beer Industry
China Dominating Beer Production
A wide range of beers is available in the market, each with its own characteristic tastes and flavors. A considerable increase in beer consumption has been observed in India due to its growing youth population with a preference for beer. Changing lifestyles and consumer preferences have considerably boosted the adoption of beer in the Asia-Pacific region. Owing to the increasing demand in the region, companies operating in the region have grown to feed the demand of other countries as well. Notably, China recorded the highest beer production across the Asia-Pacific region, followed by Thailand and Singapore.
Although alcohol has been produced and consumed in China for a very long time, the country's alcohol sector has only recently begun to play a significant role on the global stage, particularly in the case of beer. Market growth for beer in China has been rapid. Craft brewers are starting to target more affluent customers after years of witnessing the oversaturation of the Chinese market by mass-produced light lagers. According to the National Bureau of Statistics of China, beer production in China increased from over 34.11 billion liters in 2020 to about 35.6 billion liters in 2021. The production and availability of a wide range of beers across the region are driving the beer market across the country.
Growing Preference for Low Alcohol by Volume (ABV)
There has been a consistent growth in preference for low-alcohol by-volume beverages, and the sales of no-alcohol and low-alcohol beers have been rising with the growing interest from health-conscious consumers and a wider choice of new ranges with improved taste. Another driving factor is that the low-alcohol beers are now cheaper than their high-alcoholic equivalents, for those of 2.8% ABV and less. The cost reduction would drive the market for low-alcohol such as craft beer. The scenario is much more prominent in developing countries like China, Singapore, Australia, and India.
One of the most consumed alcoholic beverages across the Asia-Pacific region is beer. The consumption of beer, especially non- and low-alcoholic beers, is rising noticeably during the current year. The low alcohol-by-volume beers' sensory properties are quite comparable to those of their alcoholic equivalents, but their psychoactive properties are diminished by the absence of alcohol. In addition, these drinks are a preferable substitute for soft drinks (for adults), especially sweetened carbonated beverages, due to their low-calorie contents. According to National Drug Strategy Household Survey during the current year, 12.8% alternate between alcoholic and non-alcoholic drinks. The health consciousness among consumers has led to the creation of opportunities for low alcohol-by-volume beer, driving the market across the region.
