Craft beer innovations in China is about to move one step up, with interesting flavors like tea, mushrooms, fruit, and chilli introduced to ignite consumer interests in a rather tepid beer segment.
Flavored craft beer is taking over retail shelves in major Chinese cities like Beijing, replacing what was once dominated by major brands like Budweiser, Tsingtao and Snow beer.
Popularity of craft beer has extended beyond offline to also include online e-commerce listings. According to a report, more than 570,000 of tea-infused craft beer has been sold on Douyin app.
Despite a challenging beer market, niche segments like craft beer still continue to grow. China has 7,267 craft breweries, with 1,009 newly registered in the first 5 months of this year and 1,749 last year, according to data from Qichacha. Investors in this small but rapidly growing segment include brewers, beer enthusiasts, distributors, restaurants, and tea makers, all offering their own unique versions of craft beer products to the market.
The craft beer segment also marks the beginning of a new wave of premiumization in China’s beer industry, where standard beer sales is slagging as consumers seek for new drinking experiences, new flavors and high quality ingredients even in beer products. Unusual beer flavors seem to enjoy huge shopper curiosity especially among the younger generations which might translate to strong demand.
The strong demand for craft beer is also supported by the increasing number of pubs, bars and drinking places seeking to offer diversity in terms of styles and flavors, in a highly competitive market.
