Beer Production Volumes Fall in China as Wine Gets More Popular

Published Date : May 19, 2015

According to latest data from the Chinese Bureau of Statistics, beer production volumes have fallen for the first time in 24 years by 2.76% approximately by 4.9 kilo liters that equals to 163 billion standard size beer bottles.

For decades beer production had grown rapidly and production had tripled from 1990 to 2000 and doubled from 2000 to 2010. In 2013 beer production broke the 50 million kiloliter threshold and there was a production of 50.62 million kiloliters of beer. In 2014 beer had a majority of 75.2 in the alcoholics’ drinks market in China, according to the Taiwanese news site “Want China Times”.

According to an official of the China Alcoholics Drinks Association the prime reason for decline in beer production volumes is that more people are selecting wine instead of beer. The local Chinese made wine may not have international popularity, but there is a growing middle class market segment for Chinese brands of wine. Going by statistical data, China was the world’s largest consumer of wine, buying 155.4 million cases of red wine annually, two years ago.

Other reasons for the decline are stated to be the government’s move for officials to be more economical. In 2013 when President Xi Jinping assumed office the big spending on parties and social outings and banquets were reduced and this austerity drive put a dampener on beer production. Xi Jinping is the President of the People’s Republic of China. Entertainment and restaurant venues became subdued due to officials not venturing to eat out or attend karaoke parties. Suspension of gift giving by organizations resulted due to the soberness drive and beer sales further declined. The slight decline in beer production volumes can mean problems for brewers.