Core Insights - The beer industry in China is experiencing a significant decline, with beer sales dropping year after year, particularly among younger consumers who prefer alternatives like milk tea [1][3]. Industry Performance - In June 2023, beer production decreased by 1.7% year-on-year, and sales during the Dragon Boat Festival holiday fell by 3.2% compared to 2022 [3]. - China Resources Beer saw its stock price hit a 52-week low in May 2023, with a market value loss of nearly 40%, while its basic beer line experienced an 18% drop in sales despite the Heineken series maintaining double-digit growth [3]. - Chongqing Beer reported an 8.3% decline in overall sales but an 11.6% increase in revenue, indicating a shift in product structure [5]. - The total beer production from January to July 2023 fell by 4.9%, marking the largest decline in non-pandemic years [7]. Consumer Behavior - The proportion of beer consumption among the 18-30 age group has dropped below 50%, with non-alcoholic beverages and low-alcohol drinks seeing a 76% increase in orders [9]. - Young consumers are increasingly critical of traditional beer, referring to it as "industrial water beer," with few domestic brands making it onto lists of popular craft beers [9][11]. - The consumption of craft beer has surged by 41% in 2023, with consumers under 35 accounting for 78% of this growth [11]. Health Trends - Research indicates that fitness enthusiasts have reduced their alcohol intake by 29%, with educational content highlighting the caloric equivalence of beer to rice [13]. - Young consumers are seeking healthier alternatives rather than just substitutes for alcohol, with a preference for products priced between 8-15 yuan for craft beers [13]. Industry Adaptation - Major breweries are innovating to adapt to changing consumer preferences, with Qingdao Brewery focusing on non-alcoholic beer and Yanjing Beer allocating 30% of its marketing budget to esports platforms [15]. - China Resources Snow Beer has partnered with Meituan for a rapid delivery service, achieving a record of 120,000 orders in one day during high temperatures [15]. - Qingdao Beer has launched limited edition collaborations with domestic IPs, selling out quickly despite some consumer criticism regarding pricing [17]. Market Forecast - Predictions suggest that by 2025, the market share of traditional industrial beer may shrink to below 60%, down from 82% five years ago [19]. - The number of craft breweries is increasing, with 2,143 new craft-related businesses registered in 2023, a 39% rise from the previous year [19].