August 10, 2010

Kirin Institute of Food and Lifestyle Report Vol. 26
Global Beer Production by Country in 2009

2009 Marked the 25^th Consecutive Year that Annual Global Beer Production Showed Year-on-Year Growth; Asia Overtook Europe to Become the Largest Beer-Producing Region in the World

Kirin Institute of Food and Lifestyle—a research arm of Kirin Holdings Company, Ltd. (President and CEO: Senji Miyake)—today published a report on global beer production by region and by country for 2009. This report is based on findings from the company's questionnaires sent to brewers associations in major countries as well as on the latest industry statistics available overseas. Kirin has been tracking global beer production since 1974.

Summary of Report

Global beer production amounted to 181 million kiloliters in 2009, up 0.4% from 2008.

Asia, where the volume of beer production in 2009 increased by 5.5% from its year-earlier level, became for the first time the largest beer-producing region in the world with a 32.4% share of global production; Europe, where beer production in 2009 decreased by 5.1% from the previous year, slipped to second place with a 30.5% production share.

China produced more beer than any other countries in the world in 2009, remaining at the top spot for the eighth year in a row. Among the top 25 beer-producing countries in the world, Vietnam, Argentina and China ranked in the top three countries that achieved the highest growth rate in beer production in 2009—with 24.3%, 9.7%, and 7.0% respectively.

In 2009, global beer production amounted to 181 million kiloliters, an increase of 0.76 million kiloliters, or 0.4%, from 2008. That was the 25^th consecutive annual increase since 1985.

The annual growth rate of 0.4% seen in 2009 was the third-lowest growth rate after those in 1984 and 1983 since Kirin started compiling statistics on global beer production in 1974. The sluggish growth in beer production in 2009 may in part be due to weakened beer consumption in the wake of the global economic downturn.

1. Global Beer Production by Region in 2009 (Table 1)

All regions around the world, with the exception of Europe and North America, saw a year-on-year increase in beer production in 2009.

Beer production decreased by 5.1% in Europe in 2009 from the year before. Of the top 10 countries—the combined production of which accounted for nearly 80% of total production in Europe—nine saw a year-on-year drop in beer production, including Russia (4.8%), Germany (2.8%) and the United Kingdom (9.0%).

China, Vietnam and India recorded strong annual increases in beer production in 2009—7.0%, 24.3% and 12.3%, respectively—and drove the growth in overall beer production in Asia, where the annual growth rate of 5.5% was larger than those of other regions in 2009. Asia increased its production share in the global market by 1.6 percentage points and became the largest beer-producing region in the world, ahead of Europe, which had held that position since 1974.

2. Global Beer Production by Country in 2009 (Table 2)

Russia, the third-largest beer-producing country in the world, was affected by the global financial crisis and its beer production dropped by 4.8% in 2009 from the previous year, reversing the solid growth momentum that the country had been building in recent years.

Among the 25 largest beer-producing countries in the world, higher annual growth in beer production was seen in Vietnam, Argentina and China—24.3%, 9.7% and 7.0%, respectively—than in others in 2009. Vietnam jumped from 21^st place on the top 25 list in 2008 to 15^th place in 2009. On the other hand, beer production slowed down substantially in Romania, Poland and the United Kingdom in 2009—a 12.9% drop in Romania, 9.6% in Poland and 9.0% in the United Kingdom.

Japan, while maintaining the 7^th position on the top 25 list, continued to follow a downward trend in beer production for the fifth consecutive year; the 2.2% year-on-year decline seen in 2009 was due to a combination of the low birthrate and the aging of the population; changing consumer taste for beverages; consumers remaining in a belt-tightening mode; and an unseasonably cool summer.

3. Global Beer Production in 2009 as Compared with 1999 (Table 3)

The volume of global beer production in 2009 was 44.08 million kiloliters, or 32.3%, more than in 1999. Nearly half of that growth was in China, where beer production has increased by 21.63 million kiloliters over the past 10 years—an indication that China has driven the growth in global beer production during the past decade.

Of the top 25 beer-producing countries in the world, Ukraine (No. 11 on the list), Vietnam (No. 15), and Nigeria (No. 25) achieved higher growth in beer production than the other 22 countries over the past 10 years—258.8% in Ukraine, 206.7% in Vietnam, and 190.9% in Nigeria, raising expectations for their future growth.

• Note: Production volume in Japan is a combination of beer, low-malt beer and no-malt beer.
• Source: Questionnaire surveys Kirin Institute of Food and Lifestyle conducted with brewers associations in major countries; The Barth Report Hops 2009/2010 published by the BARTH-HAAS GROUP

Table 1: Global Beer Production by Region in 2009

By-Region Global Beer Production, Year-on-Year Change and Production Share

• *Production volume in Japan is a combination of beer, low-malt beer and no-malt beer.
• **Total may not add up exactly as a result of rounding off.

Global Beer Production by Region (%) in 2009

Comments:

• All regions except Europe and North America saw a year-on-year increase in beer production in 2009.
• Asia, the largest beer-producing region in the world, increased its production share by 1.6 percentage points from 2008, driven primarily by China and Vietnam, which achieved 7.0% and 24.3% year-on-year growth, respectively.
• Beer production in Europe dropped by 5.1% from 2008 due to slowdowns in major beer-producing countries—a 4.8% decline in Russia, 2.8% in Germany and 9.0% in the United Kingdom.

Annual Global Beer Production Volume and Growth Rate

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Table 2: Global Beer Production by Country in 2009

Comments:

• China, the world's largest beer-producing country, increased its beer production by 7.0% from 2008 to more than 40 million kiloliters in 2009, continuing to gain production share in the global market. As increases in personal income and higher living standards, both created by economic growth, have been driving the growth of beer-drinking population in China, beer production is expected to maintain its growth momentum in that country.
• Russia, which had achieved substantial growth in beer production in recent years and has been the third-largest beer producer in the world since 2007, lost its growth momentum in 2009 due to slowdown in beer consumption in the wake of the global financial crisis.
• In Brazil and Vietnam, increases in personal income stimulated beer consumption, which in turn drove beer production in 2009—a 4.4% year-on-year increase in Brazil and 24.3% in Vietnam. The 24.3% growth seen in Vietnam was the highest among the top 25 beer-producing countries in the world in 2009.
• In Japan, beer production dropped by 2.2% in 2009 from 2008 due to a combination of the low birthrate and the aging of the population; changing consumer taste for beverages; consumers remaining in a belt-tightening mode; and an unseasonably cool summer.

Table 3: Global Beer Production by Country in 2009 as Compared with 1999

Comments:

• The volume of global beer production in 2009 was 44.08 million kiloliters, or 32.3%, more than in 1999. Nearly half of that growth came from China, where beer production increased by 21.63 million kiloliters during the past decade.
• From 1999 to 2009, beer production in Ukraine grew 3.6 times, in Vietnam 3.1 times, in Nigeria 2.9 times, in Russia 2.4 times and in China 2 times. Substantial growth in beer production was also seen in Thailand and Romania during the past decade.