admin The world’s largest brewer is making a big push for China and other parts of Asia — but it could prove challenging for Anheuser-Busch InBev to topple local beers that have long dominated their home markets.
After listing its Budweiser APAC in Hong Kong last week, AB InBev said it will be looking to expand in Asia, especially in China, South Korea, India and Vietnam.
But in China — where premium beers are popular — AB InBev is in third position with a 16% market share, according to Euromonitor. Across Southeast Asia, the company is not even in the top ten places.
“Local Chinese beer companies have very strong control on the local regional share market so it remains to be seen what Budweiser’s strategy (is) going forward from here,” Bank of Communications International’s chief strategist, Hao Hong.
Analysts say big players have already been buying up smaller beer companies in Asia, and that could be one of the strategies for AB InBev.
However, local beers still dominate in Asia.
China is the world’s largest beer market by sales but firms have found it challenging amid fierce competition between local brewers and global beer giants.
China Resources Beer has more than 25% market share in the Chinese market, according to Reuters. Its vastly popular Snow beer is the top-selling beer in the world by volume.
The company is the largest local brewer by market value, followed by Tsingtao Brewery and Chongqing Brewery, Refinitiv data shows.
While the local Chinese brewers have a strong presence in the regional share market, the beer market in China is still largely fragmented, Hong said.
He added that China’s tipple of choice is still the baijiu, a traditional drink made from fermented grain that holds sway in the country.
“The segment that is really doing well is the baijiu so it remains to be seen how much further growth the company can get from the Chinese market,” he said, referring to Budweiser APAC.
About half of all beer consumed across the globe are sold by AB InBev, Heineken, Carlsberg and China’s Snow.
In addition to Budweiser, AB InBev also owns other popular beers such as Stella Artois, Corona and Hoegaarden.
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