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You are here:  Home / Business News / China a close second to US beer drinkers

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China a close second to US beer drinkers

By SHIHOKO GOTO, Senior Business Correspondent
Published: Dec. 29, 2003 at 3:53 PM
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If the amount of beer consumed by a population were a barometer of economic growth, then China is definitely catching up with the United States, and very quickly at that. And if demand for mugs of bubbly hop continues at the current pace, the world's most populated nation could soon become the biggest beer-drinking nation in the world as well.

The Kirin Brewery survey of beer consumption worldwide found that the United States consumed the largest total volume of beer, with a yearly consumption rate of 23.82 million kiloliters, up 1.4 percent from the previous year. However, Kirin also found the gap with second-placed China is shrinking rapidly.

According to the survey, China racked up a total yearly volume of 12.35 million kiloliters of beer consumed, marking a 4.7 percent surge in beer drinking from the previous year.

It should be kept in mind, of course, that China boast a population of over 1.2 billion persons, thus that a cultural shift toward any kind of beverage is liable to make the nation a default large consumer -- at least in terms of total volume.

The Kirin survey also reported that Germany saw its beer consumption dip 0.5 percent from a year ago to 10.03 million kiloliters, while Brazil too saw beer drinking levels fall by 0.5 percent to 8.35 million kiloliters.

Meanwhile, Japan ranked in at sixth place on the global beer-drinking chart, with drinking volume falling 2.6 percent from the previous year, whilst Russia was placed fifth as drinking levels soared 11.6 percent to 7.08 kiloliters.

By region, Europe remained the biggest beer-drinking area, accounting for 33 percent of global beer consumption. But Asia including China and Japan came in at second place, taking up over 26 percent of world market share of beer-drinking, while North America ranked in at third place with 18.3 percent of the overall market. Still, the biggest jump in beer consumption was seen in the Middle East, which soared 5.3 percent from the previous year, even though it still only accounts for 0.6 percent of the overall world beer market.

But despite keeping their top position as beer drinkers, countries in western Europe where beer-making originated in the first place are finding that their population is turning more towards wine and hard liquor more than beer. Ireland, Denmark, Belgium, Luxembourg, France, as well as Germany, all saw the amount of beer guzzled decline over the past few years.

One key factor for the traditionally beer-drinking nations turning towards other alcoholic beverages could be the sheer number of different alternatives in both location and beverages that are on offer in those markets. From wine bars to ready-mixed bottles of spirits such as vodka and tonic water, the variety of places and the sheer number of options available other than beer pubs have crowded out the beer market from years past.

And in the case of Kirin Beer, the company has gone far beyond its namesake over the past decade as it has expanded not simply into wines and spirits, but also soft drinks, mineral waters, and herbal teas. Moreover, the company has begun getting involved in biotechnology in recent years. For example, Kirin announced last week that its laboratory is continuing research into a lactic acid bacteria which it sees can potentially combat hay fever.

Such moves to go beyond simply making beer have been crucial for the company's survival as consumers clamor not just for more diversity in alcoholic beverages, but also seek to have healthier -- or at least less liver-damaging drinks -- as well as foods and medicines.

Likewise, Chinese consumers too are increasingly looking for alcoholic drinks that not only give a buzz, but also provide merriment without doing too much damage to the body. Certainly, the fact that China's tax system has been more punitive towards imported spirits has made domestically brewed beer one of the most readily available as well as one of the cheapest alcoholic drinks on offer.

But cost isn't the only reason for the surge in beer consumption. Research group Euromonitor International also found that an increasing number of Chinese drinkers were becoming more health-conscious, and turning towards drinks with less alcohol content such as beer. As a result, the group reported that many local spirit manufacturers reduced the alcohol content of their products from over 50 percent to between 30 and 50 percent, while some companies actually switched over from making spirits to producing beer and wine instead.

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