Instant Retail Boom Reshuffles China’s Beer Market, Hits Foreign Giants
China’s fiercely competitive beer market is undergoing a significant reshuffle, with domestic brewers leveraging a boom in on-demand delivery to unseat long-standing foreign leaders. In a market defined by shrinking volumes, local players are finding new avenues for growth, challenging the established hierarchy and the dominance of international brands in the premium segment.
The most prominent shift in the first half of 2025 saw China Resources Beer (Holdings) Company surpass Budweiser Brewing Company APAC Ltd. in revenue to claim the top spot. The move underscores a broader trend where China’s three largest domestic brewers posted growth while their two main foreign-controlled rivals faltered.
Meanwhile, a battle for fourth place saw Beijing Yanjing Brewery overtake Chongqing Brewery, which is backed by global giant Carlsberg, in net profit. Tsingtao Brewery solidified its number-three position with steady gains.
This reordering is occurring against the backdrop of a stagnant industry, where overall output continues to decline. The primary catalyst for the domestic brewers' success has been their aggressive expansion into instant retail channels, a segment that is reshaping consumer purchasing habits and creating new growth opportunities that are proving decisive in the tight race for market share.
Domestic Brewers Ascend as Foreign Rivals Stumble
The first half of 2025 financial results laid bare the shifting dynamics among China’s five largest listed beer companies. While the top five collectively generated approximately 84.3 billion yuan (US$11.7 billion) in revenue, their individual performances diverged sharply.
China Resources Beer reported a 0.8% increase in consolidated turnover to 23.94 billion yuan, with beer-specific revenue rising 2.6%. Its profit attributable to shareholders climbed 23%. In contrast, Budweiser APAC, which counts China as its core market, saw its total revenue fall 5.6% to US$3.14 billion, while profit attributable to equity holders dropped 24.4%. The company specified that its sales volume in China fell by 8.2% and revenue by 9.5%.
Further down the rankings, Tsingtao Brewery posted a resilient performance, with revenue growing 2.11% to 20.49 billion yuan and net profit increasing by 7.21%, reversing a sales decline from 2024.
The contest for the fourth position intensified as Yanjing Brewery’s revitalization efforts paid off. Its revenue grew 6.37% to 8.56 billion yuan, while net profit surged an impressive 45.45% to 1.10 billion yuan. This allowed Yanjing to surpass Chongqing Brewery in profitability, as the latter reported a 0.24% dip in revenue and a 4.03% decline in net profit.
On-Demand Delivery Fuels Sales Boom
While the overall Chinese beer industry saw production volume from major enterprises shrink by 0.3% in the first half of 2025, the three leading domestic brewers bucked the trend, each reporting sales volume growth of over 2%. This counter-cyclical performance is largely attributed to the so-called "food delivery wars" and the rise of instant retail.
All five major breweries highlighted their strategic focus on this rapidly growing channel. CR Beer noted that its gross merchandise value (GMV) from online and instant retail businesses grew by nearly 40% and 50%, respectively, after forging partnerships with platforms like Alibaba, Meituan-Dianping, and JD.com. Similarly, Yanjing Brewery’s online revenue jumped over 30%.
Tsingtao Brewery's deep collaboration with Meituan's flash delivery service serves as a prime example. After hitting 1 billion yuan in transaction value in 2024, the partnership is on track to exceed 1.5 billion yuan in 2025, driven by new dedicated "Tsingtao Beer Fresh Direct" brand stores. In the first half of the year, Tsingtao's sales on the platform grew nearly 60%, far outpacing the industry average. While industry insiders note that instant retail still constitutes a small portion of total sales, its strategic importance as a growth driver is undeniable.
Foreign Brands' Premium Grip Loosens
The success of domestic brewers has coincided with a slowdown for foreign-controlled brands, particularly in the lucrative premium segment they once dominated. Both Budweiser APAC and Chongqing Brewery, which have historically focused on high-end products and on-premise channels like bars and restaurants, reported weakness in these areas.
In the first half of 2025, Budweiser APAC’s China sales volume fell 8.2%. Chongqing Brewery, whose portfolio includes international brands like Carlsberg, Tuborg, and 1664, saw revenue from its high-end products stagnate with just 0.04% growth.
During recent earnings calls, management from both companies acknowledged lackluster performance in on-premise channels and stated they are actively working to rebalance their channel mix toward off-premise and instant retail. Chongqing Brewery has established a dedicated "instant retail combat unit" to deepen platform collaborations.
This strategic pivot comes as domestic players make significant inroads in the premium market, shifting the competitive landscape from a pure volume game to a multi-dimensional battle across products, channels, and consumer experiences. While it is too early to declare a permanent overthrow, the first half of 2025 has shown that China's domestic brewers are mounting their most serious challenge yet to the long-held supremacy of their global rivals.