Beer in Asia Pacific

September 2019

Asia Pacific is the largest beer market region globally, although leading markets of China and Japan are on the decline, induced by ageing demographics and switching to alternative beverages. Increased disposable income and the premiumisation trend see a shift to value growth rather than volume, with craft beer and imported premium lager expected to flourish. Led by a relatively young population, Southeast Asia is projected to be the key growth contributors for beer volume growth moving ahead.

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Key Findings

China influences Asia Pacific beer volume decline

sia Pacific is the largest region for beer by total volume globally, while China is the largest global market. However, Asia Pacific saw a beer volume consumption decline over the review period, attributed to China’s decrease from ageing demographics and a shift to alternative beverages such as spirits. Even gains from fast-growing developing markets such as India, Vietnam and the Philippines were unable to offset this decline.

Premiumisation in beer - greater focus on value than volume

Rising disposable income across Asia Pacific and the premiumisation trend driven by millennials, who are more willing to experiment with new tastes and more premium flavours, is shaping a shift in consumption towards a value focus. Imported premium lager and craft beer benefit most from this, with dark beer growing rapidly in markets such as China, Japan and South Korea due to the common usage of ale in craft beer.

Ageing demographics to pose a challenge to future growth

Ageing demographics is expected to be a key challenge limiting the growth of beer markets in Asia Pacific over the forecast period, with the leading markets of China and Japan among those projected to decline, while other ageing populations such as South Korea, Hong Kong, Thailand and Singapore are expected to see slow growth. Nevertheless, ageing demographics also creates growth opportunities for niche beer categories such as non/low alcohol beer, which is expected to benefit from increased health-consciousness among ageing populations, especially in the Japanese market.

Southeast Asia to be the main growth driver

Despite the overall beer decline in Asia Pacific, Southeast Asia continued strong growth, buoyed by leading markets Vietnam and the Philippines, as well as Cambodia, which has the highest beer per capita consumption in the region. Southeast Asia is projected to be the key growth driver in Asia Pacific over the forecast period as well, boosted by increased disposable income and a relatively young population.

Introduction

Scope
Key findings

Regional Overview

Alternative beverages, Muslim populations account for low per capita
Indochina region leads in per capita consumption
Asia Pacific suffered from China-induced decline over historic period
Japan declines due to ageing demographics
Vietnam and Philippines drive growth in Southeast Asia
Dark beer growth boosted by the craft beer trend
China’s lager decline dampens overall Asia Pacific performance
Lager still dominates despite the rise of niche alternatives
Varying off-trade/on-trade splits across Asia Pacific
Supermarkets and convenience stores gain on independent small grocers
Supermarkets to benefit from urbanisation and premiumisation

Leading Companies and Brands

Consolidated nature of top players masks fragmentation of brands
Chinese players lose share to international and Southeast Asian players
Local and international players employ varying market focus strategies
Budweiser and Red Horse gallop up the rankings

Forecast Projections

Southeast Asia to drive the future growth of beer
Ageing demographics to hit China and Japan hard
Population demographics and soft drivers to influence growth prospects

Country Snapshots

China: market context
China: competitive and retail landscape
Japan: market context
Japan: competitive and retail landscape
Vietnam: market context
Vietnam: competitive and retail landscape
India: market context
India: competitive and retail landscape
Philippines: market context
Philippines: competitive and retail landscape
Thailand: market context
Thailand: competitive and retail landscape
South Korea: market context
South Korea: competitive and retail landscape
Kazakhstan: market context
Kazakhstan: Competitive and retail landscape
Taiwan: market context
Taiwan: competitive and retail landscape
Indonesia: Market context
Indonesia: Competitive and retail landscape
Uzbekistan: market context
Uzbekistan: competitive and retail landscape
Malaysia: market context
Malaysia: competitive and retail landscape
Hong Kong, China: market context
Hong Kong, China: competitive and retail landscape
Singapore: market context
Singapore: competitive and retail landscape
Azerbaijan: market context
Azerbaijan: competitive and retail landscape
Pakistan: market context
Pakistan: Competitive and retail landscape

Appendix: Competitor Analytics

Competitor Analytics tool
Overview
Competitors
Market overlap
Treemap
Overlap matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models
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