World beer: China, the world's largest beer market, looks set to further increase its share of global consumption in 2004. Furthermore, having finally overtaken the USA in 2002, China's consumption of Beer is now pulling clear of its rivals, according to a new report from leading beverage industry analysts Canadean published on November 8.

Despite this dominance, per capita consumption is relatively low and only a fraction of that for many other nations. China's huge population certainly has the capability to provide plenty of impetus for future growth. On a regional level, Asia still dominates and, buoyed by China, is expected to advance by over 3% in 2004 and by an additional 18% by 2009.

Consumption in Eastern Europe has also grown rapidly, increasing by almost 60% since 1998. Russia and Poland have been the main contributors of this incremental volume and both feature in the World's top five growth markets. However, the full implications of Russia's ban on drinking in public places remain to be seen.

The fortunes of neighbouring Western Europe have though been somewhat different. Western Europe is the second largest global Beer market but consumption has now fallen in four of the last five years. Indeed, such has been the demise that the region's global share is now nearly a third lower than that of Asia. The slide has been compounded by a long term decline in the traditional stronghold of Germany. The controversial deposit scheme was the last thing the German market needed and had a catastrophic effect with many major discounters withdrawing Beer from their stores altogether. Were it not for an exceptionally hot summer, the consequences could have been even more serious.

The North American market has been sluggish for a number of years and is expected to recede again in 2004 and beyond. However, imported Beers continue to grow in popularity and are accounting for an ever increasing share of throat. The picture in Latin America is far more optimistic where consumption appears to have recovered from the slight downturn last year. Solid growth is expected to return in 2004 with volumes rising in both Brazil and Mexico.

Looking forward, the positive performances of Asia, East Europe and Latin America should more than compensate for the shortfalls in established markets. The short to medium term forecast is upbeat with global consumption predicted to advance steadily.

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