Gaining Ground in Asia

The economic woes have impacted beer volumes and growth in the global beer market dropped from a respectable 6% in 2007 to less than 2% in 2008. Canadean’s recently published Global Beer Trends Report anticipates a further slowdown in 2009 before demand begins to accelerate in 2010.

Table 1: Global beer trends (2003-2009).

China and Brazil up beer growth
Asia accounts for around a third of all beer sales globally. In 2008, the region managed to record a 5% increase in volumes. China, which accounts for seven in every 10 liters of beer sold in Asia, is the key growth driver and it is helping to sustain the global beer market.

While China saw a slowdown last year, was affected by the financial downturn and was handicapped by snowstorms in January and February, earthquakes in May, and comparatively cooler summer weather, the market still expanded by 6% helped in part by the success of the Beijing Olympics.

Latin America has also facilitated the progress of the global beer market with 2008 sales increasing by a healthy 3%. As with China, Brazil was a major growth stimulant in the region. Being the fourth biggest producer of beer in the world, the country enjoyed a 4% volume growth last year helped by competitive pricing and a vibrant off-premise market.

China, which accounts for seven in every 10 liters of beer sold in Asia, is the key growth driver and is helping to sustain the global beer market.

Middle East records double-digit growth
While the beer market in Asia and Latin America recorded good growth last year, it was the Middle East and North Africa that could claim to be the fastest growing region in the world, registering double digit growth last year.

On the global stage however, for religious and cultural reasons, sales are insignificant and account for less than 1% of overall sales. In per capita terms, as a region, consumers drink two liters each, under 10% of the worldwide average. The world market however cannot rely on this part of the world to drive up sales.

Europe beer consumption remains strong
The situation is less optimistic in Europe and West Europe, which has not seen growth since 2006, has witnessed the economic downturn quicken the rate of decline, while in neighboring East Europe the crisis is set to trigger a negative performance this year.

The strong Russian market saw its first decline in a decade last year with sales set to get worse this year. Despite their problems it should be noted that Europe remains home to eight of the top 10 per capita drinking markets in the world with the Czechs continuing to dominate,
with each drinker consuming more than 160 liters annually.

In the influential North American market, sales growth has fizzled out to almost nothing. North America and Europe make up 45% of global beer volumes and with sales flattening in North America and European volumes falling, the focus is now on Asia and Latin America to deliver volume growth during these turbulent times.

www.canadean.com