August 11, 2011

Kirin Institute of Food and Lifestyle Report Vol. 30
Global Beer Production by Country in 2010

Global Beer Production Sets New Record in 2010, Driven by Growth in Asia and Latin America

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 2010. This report is based on findings from 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 185.62 million kiloliters in 2010, up 2.2% from 2009, marking its 26th consecutive year of growth.

Asia, where the volume of beer production in 2010 increased by 5.4% from its year-earlier level, remained the largest beer-producing region in the world, capturing a 33.3% share of global production. Latin America, where beer production in 2010 increased by 5.1% from the previous year, took a 16.5% production share in the global market. These two regions drove the growth in global beer production in 2010.

Brazil, having achieved an 18.0% annual growth in beer production in 2010, became the third-largest beer-producing country in the world for the first time, overcoming Russia, where beer production fell by 6.2% from the previous year. Among the top 25 beer-producing countries in the world, Vietnam, Nigeria, and the Philippines recorded high annual percentage growth in beer production in 2010 at 15.2%, 10.0%, and 7.5%, respectively.

In 2010, global beer production amounted to 185.62 million kiloliters, an increase of 3.92 million kiloliters, or 2.2%, from 2009, recording the 26th consecutive annual increase since 1985.

The annual growth rate of 2.2% seen in 2010 was higher than the moderate growth of 0.7% recorded in 2008 and the 0.8% in 2009.

1. Global Beer Production by Region in 2010 (Table 1)

All regions around the world, except Europe and North America, saw a year-on-year increase in beer production in 2010, as they had in 2009.

Asia, where beer production increased by 5.4% in 2010 from the previous year, remained the largest beer-producing region in the world as it had in 2009. China, Vietnam, and the Philippines recorded solid annual increases in beer production in 2010—6.3%, 15.2%, and 7.5%, respectively—and drove the growth in overall beer production in Asia.

Latin America was the third-largest beer-producing region in the world in 2010; its annual growth of 5.1% in beer production was driven mainly by Brazil, which achieved an 18.0% year-on-year increase.

While annual beer production increased for the 10th consecutive year in Asia and for the 8th consecutive year in Latin America in 2010, it dropped by 2.4% in Europe and by 1.2% in North America, marking its third consecutive year of decline in these two regions.

In Africa, year-on-year growth in major beer-producing countries—2.8% in South Africa and 10.0% in Nigeria—helped the region achieve a 7.2% annual increase and pass the 10 million- kiloliter mark in beer production in 2010.

2. Global Beer Production by Country in 2010 (Table 2)

Brazil, which enjoyed robust economic growth, achieved an 18.0% annual increase in beer production in 2010, its highest percentage growth in the past 10 years. The country became the third-largest beer-producing country in the world for the first time, overcoming Russia, where beer production decreased by 6.2% from the previous year. China produced 6.3% more beer in 2010 than in 2009, and remained the largest beer-producing country in the world for the ninth year in a row.

Among the 25 largest beer-producing countries in the world, high annual growth in beer production was seen in Vietnam, Nigeria, and the Philippines—15.2%, 10.0%, and 7.5%, respectively—in 2010; Vietnam and Nigeria recorded annual growth in beer production for the 10th consecutive year, and the Philippines returned to the top 25 list after an absence of five years.

In Japan, beer production fell by 2.4% in 2010 from the previous year. The surge in beer consumption fueled by a record heat wave in the summer was not enough to offset slow beer sales during the unseasonably cool and rainy spring, and the weak demand for beer from consumers who remained in a belt-tightening mode for the rest of the year.

3. Global Beer Production in 2010 Compared with 2000 (Table 3)

The volume of global beer production in 2010 was 46.36 million kiloliters, or 33.3%, more than in 2000.

The countries that had made the top 10 list of the largest beer-producing countries in the world in 2000 remained on the list in 2010—apart from the Netherlands that dropped off the list, and Poland that made it to the list in 2010. All but three countries that had ranked 11th to 25th in 2000 remained on the list in 2010; Ukraine went up from 26th in 2000 to 11th in 2010, Vietnam from 30th to 13th, and Nigeria from 34th to 21st.

• Note: Production volume in Japan is a combination of beer, low-malt beer, and no-malt beer.
• Source: Questionnaires sent by the Kirin Institute of Food and Lifestyle to brewers associations in major countries; The Barth Report Hops 2010/2011 published by the BARTH-HAAS GROUP

Table 1: Global Beer Production by Region in 2010

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

Global Beer Production by Region (%) in 2010

Comments:

• All regions except Europe and North America saw a year-on-year increase in beer production in 2010.
• Asia, where beer production increased by 5.4% in 2010 from 2009, increased its global production share by one percentage point from the previous year and remained the largest beer-producing region in the world in 2010 as it had in 2009. Growth in Asia was driven primarily by China, Vietnam, and the Philippines, which achieved year-on-year growth of 6.3%, 15.2%, and 7.5%, respectively.
• Beer production in Europe dropped by 2.4% from 2009 due to slowdowns in major beer-producing countries—a 6.2% decline in Russia, 2.4% in Germany, and 3.2% in the United Kingdom.
• Latin America recorded an annual growth of 5.1% in beer production, driven mainly by Brazil, which achieved an 18.0% year-on-year increase.
• In Africa, a 2.8% year-on-year growth in beer production in South Africa and 10.0% in Nigeria helped the region achieve a 7.2% annual increase and pass the 10 million- kiloliter mark in beer production in 2010.

Table 2: Global Beer Production by Country in 2010

Comments:

• Brazil achieved an 18.0% increase in beer production in 2010 from the previous year—its highest percentage growth in 10 years—and overcame Russia to become the third-largest beer-producing country in the world. Robust economic growth and the resulting increase in personal income helped the beer-drinking population grow in Brazil, which in turn drove beer production in the country. Beer production is expected to continue its growth momentum in Brazil.
• China, where beer production increased by 6.3% in 2010 from 2009, was the largest beer-producing country in the world in 2010—a position it has held for the past nine years. China now accounts for nearly a quarter of the world's beer production.
• Russia, which had achieved substantial growth in beer production in recent years, recorded a 6.2% drop in beer production in 2010 from the previous year, mainly because of a tax increase, and slipped to fourth position in the global market.
• Vietnam, where people enjoyed an increase in personal income fueled by economic growth, achieved a 15.2% annual growth in beer production in 2010, marking the second-highest percentage growth, after Brazil, among the 25 largest beer-producing countries in the world.
• Japan remained in seventh position in the global market. Its beer production fell by 2.4% in 2010 from the previous year. The surge in beer consumption fueled by a record heat wave in the summer was not enough to offset slow beer sales during the unseasonably cool and rainy spring, and the weak demand for beer from consumers who remained in a belt-tightening mode for the rest of the year.

Table 3: Global Beer Production by Country in 2010 Compared with 2000

Comments:

• The volume of global beer production in 2010 was 46.36 million kiloliters, or 33.3%, more than in 2000. The largest growth came from China, where beer production has increased by 22.78 million kiloliters during the past decade, followed by Russia (an increase of 5.08 million kiloliters), and Brazil (4.28 million kiloliters).
• The countries that had made the top 10 list of the largest beer-producing countries in the world in 2000 remained on the list in 2010—apart from the Netherlands that dropped off the list, and Poland that made it to the list in 2010. All but three countries that had ranked 11th to 25th in 2000 remained on the list in 2010; Ukraine went up from 26th in 2000 to 11th in 2010, Vietnam from 30th to 13th, and Nigeria from 34th to 21st.