China Beer Adjuncts Market Size, Share & COVID-19 Impact Analysis, By Type (Unmalted Grain [Unmalted Corn, Unmalted Rice, and Others], Sugar, Cassava, Potatoes, and Others), By Form (Dry and Liquid), and Country Forecast, 2023-2030

The China beer adjuncts market size was valued at USD 24.00 billion in 2022. The market is projected to grow from USD 25.35 billion in 2023 to USD 41.50 billion by 2030, exhibiting a CAGR of 7.29% during the forecast period. 

During the brewing process, ingredients such as unmalted grains, sugar syrup, cassava starch, and others are used as an adjuncts or supplements with the main ingredients, i.e., malted barley, hops, yeast, and water. These ingredients will provide different flavours, aromas, and tastes while enhancing production volume at a lower cost. The rising beer consumption in the country is positively influencing the usage of the product. Furthermore, in the recent past, the popularity of craft beer has been increasing rapidly across the country, which is elevating the demand for beer adjuncts. An upward shift is observed in the number of craft brewers and microbrewers nationwide, which will influence the adjuncts demand. Rapid urbanization coupled with shifts in shoppers' lifestyles is propelling the nation’s beer industry, which will positively impact this market.

COVID-19 IMPACT

Growth in E-commerce Sales Compensated the Supply Chain Challenges amid COVID-19

The COVID-19 pandemic adversely impacted beer consumption in China. However, with the stable continuation of beer production during the COVID-19 pandemic, this market has exhibited minimal growth during this period. According to the U.S. Department of Agriculture data, the closure of restaurants, bars, and on-store premises reduced the nation’s total beer volume sales in 2020 to 42.7 billion litres from 45 billion litres in the previous year. However, consumers have ordered beer through online retail stores. As a result, the availability of different brands on the online platform has increased. The growth of the e-commerce sector has contributed a considerable share to overcoming supply chain challenges. Hence the beer industry in China has experienced a slow growth during the pandemic.

LATEST TRENDS

Increasing Locally Produced Beer Popularity will Influence the Product Demand

The popularity of locally brewed beer is emerging strongly throughout the nation, with changing consumers' preferences for new flavors and tastes. In recent years, consumers have been willing to try new varieties with novel tastes. In addition, shoppers are shifting toward craft beer products. As a result, the demand for craft beer and local beer products is increasing across tier-one cities and several emerging tier-two cities nationwide. The increasing craft beer and regionally produced beer demand will positively influence the demand for beer adjuncts such as rice, corn, and cassava.

DRIVING FACTORS

Companies Focus on Upscaling Their Production Capacity to Push the Product Demand to the Next Height

China is one of the leading beer producers and consumers in the global market. According to the U.S. Department of Agriculture, around 34.1 billion litres of beer were brewed in 2020 in China. As beer consumption is increasing nationwide, leading beer manufacturers are expanding their production capacity to meet the demand. It will push the demand for beer adjuncts during the forecast period. For instance, in September 2022, Budweiser, a subsidiary of AB InBev, inaugurated a craft beer factory in Fujian, China. The new factory has the capacity to brew 10,000 tons of craft beer per year. The manufacturers' focus on expanding their production capacity will positively influence the beer adjuncts usage.

Increasing Craft Brewers and Microbrewers in the Country is Driving Market Growth

Since the demand for craft beer is increasing gradually, the industry is experiencing rapid growth in the number of craft brewers and microbrewers. According to the Bord Bia, an Irish food board, nearly 20 microbreweries were registered in 2010 in China, it increased to 80 in 2017. In 2020 the estimated number of microbreweries was more than 300 in China. Brewers use rice, corn, and sugar syrup as adjuncts to reduce the production cost and increase the volume. It allows them to achieve more sustainability in beer production. Thus, the increasing number of microbrewers in the nation will drive the market in the upcoming years.

RESTRAINING FACTORS 

Increasing Beer Import in the Country Hamper the Beer Adjuncts Demand in the Regional Market

There is a demand upsurge for imported premium beer products in the market. Since consumers opt for premium quality imported beers, beer import is increasing in China. According to the US Department of Agriculture, China’s beer import value from U.S. increased from USD 8.08 million in 2016  to USD 12.98 million in 2020. The increasing beer import negatively impacts the local beer industry of China and its raw material sectors. It may hamper the demand for beer adjuncts in the upcoming years.

SEGMENTATION

By Type

Easy Availability of Several Unmalted Grains will Drive the Segment Growth

On the basis of type, the market is categorized into unmalted grain, sugar, cassava, potatoes, and others.

The unmalted grain segment is further categorized into unmalted corn, unmalted rice, and others. China is one of the largest rice producers in the world. Due to the larger availability of unmalted rice in the regional market at a lesser price, brewers are using it as an adjunct in their products. Unmalted rice provides a balanced aroma & neutral taste and allows the brewers to produce light, dry beers with pleasant flavors. While having fewer technical challenges than unmalted corn and barley to produce beer, it provides more stability to the beer. As a result, the unmalted rice segment holds a crucial share in the unmalted grains segment.

By Form

High Shelf-Life of Dry Adjuncts will Influence the Demand Growth

On the basis of form, the market is categorized into dry adjuncts and liquid adjuncts.

Owing to their vast acceptability in the industry, dry adjuncts hold a larger market share. The dry form of adjuncts such as flakes, semolina, flour and starch has more shelf-life stability as compared to liquid adjuncts. Furthermore, these adjuncts are cheaper than liquid adjuncts. Thus, these factors are positively impacting the demand for dry adjuncts in the upcoming years.

KEY INDUSTRY PLAYERS

High Focus on New Product Launches and Base Expansion to Achieve Competitive Advantages

The beer industry in China is consolidated by a few companies. Some of the key companies such as Snow Beer (China Resources Holdings), Budweiser (Anheuser-Busch InBev), Tsingtao Beer (Tsingtao Brewery), Harbin Beer (Anheuser-Busch InBev), and Yanjing Beer (Beijing Yanjing Brewery) are accounting majority volume sales. Owing to a strong market footprint, vast clientele base, extensive product offerings, and strong suppliers nationwide, these companies continue to maintain their prominence in the industry. Increasing beer demand nationwide, the companies are launching new products with innovative tastes, which allows them to strengthen their market presence. Furthermore, their focus on base expansion to cater to the growing demand is additionally supporting them in achieving competitive advantages. Thus, companies focus on new product launches and base expansion activities to drive the demand for beer adjuncts such as rice and sugar.

LIST OF KEY COMPANIES PROFILED: 

• China Resources Beer (Holdings) Company Limited (Hongkong)


• Tsingtao Brewery Co., Ltd. (China)


• Anheuser-Busch InBev SA/NV (Belgium)


• Constellation Brands, Inc. (U.S.)


• Beijing Yanjing Beer Group Corporation (China)


• Carlsberg A/S (Denmark)


• Guangzhou Zhujiang Brewery Co., Ltd. (China)


• Taiwan Tobacco and Liquor Co., Ltd. (Taiwan)


• Benxi Longshanquan Beer Co., Ltd. (China)


• San Miguel Brewery Hong Kong Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Budweiser, a subsidiary beer brand of AB InBev SA, signed an agreement with Sichuan's provincial government to invest USD 15 million to launch three locally produced premium beers by 2024.


• February 2023: Brewdog, a UK-based multinational craft brewery, signed a partnership agreement with Budweiser. The joint venture with Budweiser, Brewdog is aimed to start its Punk IPA and other beers in China.


• January 2020: Taiwan Tobacco and Liquor Co., Ltd, a Taiwan brewery, launched a range of limited-edition beer and liquor products to mark the inauguration of President Tsai Ing-wen's second term on May 20.

REPORT COVERAGE

The research report provides qualitative and quantitative insights into the market along with a detailed analysis of the China beer Adjuncts market share, size, market segmentation, and growth rate for all possible segments in the market. The report also provides an elaborative industry analysis of the China market. The report provides various key insights, the overview of related markets, market dynamics, SWOT analysis, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, key market trends, and the competitive landscape.

Report Scope & Segmentation