Asian beer market will grow to $202bn by 2020

India and China are driving demand for premium beer as emerging middle classes “adopt Western culture”, according to APAC Market’s latest report.

A recent report by market research company, ApacMarket has revealed that the beer market in the Asia Pacific region is projected to grow to US$202.4bn by 2020, registering a compound annual growth rate (CAGR) of 7.3% from 2014-2020.

A rise in disposable income for the emerging middle classes and “an adoption of Western culture” in China and India had fuelled the demand for premium beer with the premium beer sector forecasted to increase its CAGR of 7.9% – the segment exhibiting the fastest growth.

More female drinkers across the board had also accelerated the consumption of light beer and major international players will look at launching low calorie and low alcohol content beers in order to reach this particular market.

Canned beer dominated in 2014, followed by bottled beer which amounted to 37%.

Elsewhere China accounted for the highest revenue generating region while India was the most profitable market in terms of growth.

Companies such as SABMiller, Asahi Breweries, Carlsberg Group, Kirin Holdings, Heineken and UB Group have their sights firmly set on Asia. In the wake of Vietnam’s brewer, Sabeco selling a 53 per cent government stake in the company to private investors, major players including Asahi Breweries, Heineken and SAB Miller are all rumoured to be interested.

Asahi Group has also entered into a partnership with Asia Brewery, a Philippine-based company, to distribute Asahi’s super dry and premium category beer in the Philippine region.  The company launched Asahi beer to target the region’s premium beer segment growth.

Elsewhere, Thailand’s high household debt has caused it to drop out of the beer consumption arena and recently, the Government has sought to implement a nationwide ban of alcohol sales within 300 metres of universities and technical colleges, in a move to curb excessive drinking.