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Demand for the beverage is predicted to rise in response to sporting events like the ongoing Euro 2024, the next Copa America, and the Paris Olympics, as well as warmer weather.
In a research released last month, CGS analysts Lei Yang and Sun Feifei noted that the industry is anticipated to grow as a result of better-than-expected sales of premium beer goods in the catering and entertainment channels.
Chinese internet database QiChaCha pointed out that, in an attempt to capitalize on the excitement around the Euro 2024, restaurants and stores are decked out in European Cup memorabilia and are serving sports-themed food.
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An article by Chinese online database QiChaCha stated that "the beer market has shown a clear growth trend, and major beer brands have competed to launch products and services that match scenario-based consumption." The note also revealed that more than 7,000 more beer-related businesses expanded in China in the previous year.
The company said that the "beer economy" is sparked by the European Cup and that there is a discernible shift in China's beer market toward more upscale options.
According to Sun and Lei, the move toward premium beer is anticipated to increase breweries' profit margins, further helped by decreasing barley prices that are bringing down expenses.
They used their own research and statistics from the China Customs Agency to demonstrate that, from January to April, the average price of imported barley decreased by 30% annually to US$273 per ton. They stated, "We anticipate that this trend will continue throughout [2024]."
In 2024, they also anticipate that China's beer business would continue to gain from an improved product mix in addition to decreasing barley and packaging material costs.
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Not just China is experiencing this comeback. After consecutive quarters of reductions, worldwide brewers were expected to sell more beer this year, according to a May Reuters article.
The article also stated that in the first quarter of 2024, Heineken, the second-largest brewer in the world, reported its first quarterly volume gain in more than a year. Following several quarters of decline, rival Carlsberg also reported increasing volumes over the same period.
According to the newspaper, Jacob Aarup-Andersen, chief executive of Carlsberg, stated that brewers will benefit from events like the 2024 European Championship and the Paris Olympics.
Aarup-Andersen stated, "We do expect positive volume growth going forward," and added that the brand will gain especially from growing sales in Asia.
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