Cheers: Global beer production increases for the first time in five years - Kirin report

05-Dec-2019 - Last updated on 05-Dec-2019 at 01:41 GMT

According to a Kirin report, global beer production has increased for the first time in five years ©Getty Images

Global beer production has increased for the first time in five years to reach 191 million kilolitres, according to a new report from Japanese brewing giants Kirin.

The data covers 2018 and was based on findings obtained from questionnaires sent to brewers in 171 countries.

This year’s increase in global beer production was mostly attributed to Mexico, which contributed 90% of the 1.09 million kilolitres rise this year.

Countries like Russia and the Philippines also contributed to the increase in global production.

According to Kirin spokesman Ataka Takashima, the increase was due to “high temperature periods continuing longer than usual and the FIFA World Cup in 2018.”

Asia still first

Country-wise, China continue to remain the largest beer-producing country in the world (39 million kilolitres), even though production dipped 2.2% in 2018. It is followed by the US (21 million kilolitres), which also saw a dip of 1.7%.

Japan remained in the seventh place (5 million kilolitres), with a decrease of 2.7% compared to the previous year.

Asia continued to remain the world’s largest beer-producing region at 32%, even though it produced 1.4% less year-on-year.

According to the report, Asia maintained its rank as the top producing region due to strong performance by India and the Philippines, despite decreasing production from China, Japan and Vietnam.

Philippines’ beer production (2.2 million kiloliters) saw an increase of 11%, which is the fourth consecutive year of increase. India’s production (2 million kilolitres) grew 4.9%.

Europe saw an increase in production by 2.1%, Central and South America by 2.9%, Africa by 1.7%, and the Middle East by 4.3%.

Europe’s rise in production was attributed to heightened interest in craft beers.

Maturing consumer demand

According to Takashima, the drop in production in traditional strong producing countries were due to several reasons.

“In China, it was due to the maturing of consumer demand, and saturation of the market.”

“In Japan, the preference of consumers was moving towards other alcohol beverages such as chuhi and highball (whisky and soda), not beer,” Takashima added.

For the Philippines, the double-digit growth in beer production was due to increased individual spending arising from a better income situation brought about by sustained economic growth.

For Japan, Takashima estimated that consumption will continue to dip.

“We estimate the market (to) continue to be minus growth.”