China's Beer Industry 2025 Atlas: China Resources Slows Down, Yanjing Surges

Ask AI · China Resources Beer Profit Decline, Is the Drag from Baijiu Business Masking Core Business Growth?

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Blue Shark Commentary: Mixed Feelings

Author | Wang Chonghe

Editor | Lu Xucheng

In 2025, China’s beer industry delivered a “steady volume, improving quality” report card. According to data from the China Alcoholic Drinks Association, nationwide, large-scale beer companies achieved approximately 180 billion yuan in sales revenue for the year, up about 4% year-over-year; profits reached about 30.5 billion yuan, an 18% increase, with profit growth far outpacing revenue growth. Meanwhile, total industry output was 35.36 million kiloliters, a slight decrease of 1.1% year-over-year, continuing the trend of stable total volume but slowing growth rate.

Against the backdrop of a gradually clear industry “ceiling,” the performance differentiation among the five major listed beer companies has become increasingly pronounced: China Resources Beer and Budweiser APAC faced profit declines, Tsingtao Brewery maintained steady progress, Yanjing Beer’s profits surged, and Chongqing Beer demonstrated resilience as a regional leader. With the addition of South China regional leader Zhujiang Beer, the “Five Strong” pattern has quietly expanded into a “Six Strong” competition.

Who is rising, who is declining?

Based on data from the 2025 annual reports and performance forecasts, the performance of the six listed beer companies shows a clear gradient and divergence.

China Resources Beer’s financial data is not optimistic — operating revenue of 37.99B yuan, down 1.68% year-over-year; net profit attributable to parent of 2.88B yuan, a sharp decline of 28.87%, the largest profit drop since 2020. However, this performance was mainly dragged down by goodwill impairment of the Baijiu business. Excluding the 5.72B yuan goodwill impairment related to Baijiu and a one-time expense of 306 million yuan for capacity optimization, adjusted net profit attributable to parent increased by 19.6% to 36.49B yuan. Focusing on the beer core business, revenue was 32.47B yuan, roughly flat compared to last year; beer sales volume was 11.03 million kiloliters, up 1.4%, outperforming the industry’s slight decline.

Tsingtao Brewery showed a steady operating foundation — operating revenue of 4.13B yuan, up 1.04%; net profit attributable to parent of 7.65M yuan, up 5.60%; net profit attributable to parent after deducting non-recurring gains and losses of 5.76B yuan, up 4.53%; product sales of 39.78B kiloliters, up 1.5%. All three core indicators grew simultaneously, with profit growth significantly faster than revenue.

In contrast, Budweiser APAC’s performance was under pressure — revenue of $1.58B (about 1.74B yuan), down 7.72% year-over-year; net profit of $489 million, a sharp decline of 32.64%; total sales volume of 7.9658 million kiloliters, down 6.08%. The Chinese market was particularly weak: in 2025, sales volume decreased by 8.6% YoY, revenue fell 11.3%, revenue per hectoliter dropped 3.0%, marking the second consecutive year of decline, with net profit hitting a new low since listing.

(Blue Shark Consumer Table)

In stark contrast to Budweiser’s downturn, Yanjing Beer’s profits soared. According to the performance forecast, the company expects net profit attributable to parent for 2025 to be between 14.72B and 1.23B yuan, up 50% to 65% YoY, setting a new record since listing, and marking the fourth consecutive year of significant growth (growth rates for 2022–2024 were 54.49%, 83.02%, and 63.74%).

Chongqing Beer achieved comprehensive steady growth in sales volume, revenue, and profit: operating revenue of 1.19B yuan, up 0.53%; net profit attributable to parent of 5.88B yuan, up 10.43%; net profit after deducting non-recurring gains and losses of 9.61B yuan, down 2.78%; sales volume of 2.9952 million kiloliters, up 0.68%. The decline in net profit after deducting non-recurring gains indicates that non-operating gains and losses contributed significantly to current profits.

As the smallest among the six, Zhujiang Beer also delivered a solid performance: total revenue of 1.5B yuan, up 2.56%; net profit attributable to parent of 904 million yuan, up 11.54%, ranking second in growth rate (only behind Yanjing Beer); net profit after deducting non-recurring gains of 832 million yuan, up 9.17%. The total beer sales volume was 1.4624 million tons, up 1.58%; beer ton price was 3,888.58 yuan/ton, up 1.57%, demonstrating the resilience of regional leaders in a stock-based competition era.

Polarization of High-End Development

High-endization is the most core keyword in the 2025 beer industry and the fundamental reason for the performance differentiation among the six companies. Although the overall industry’s high-end products have become the main driver of profit growth, the pace and effectiveness of high-endization vary significantly among companies, with “each taking their own path” being the most accurate description.

China Resources Beer’s high-endization has been effective but was dragged down by the “burden” of Baijiu. Excluding the interference of Baijiu business, the beer core business shows strong structural growth: in 2025, beer sales volume was 11.03 million kiloliters, up 1.4%; high-end and above beer sales increased year-over-year in mid-to-high units, approaching 25% of total sales, with premium and above sales nearly 10% higher than last year. International brands like “Heineken” still achieved nearly 20% growth on a high base, “Old Snow” sales grew 60%, and “Red爵” doubled. The gross profit margin of the beer business increased by 1.4 percentage points to 42.5%, and EBITDA after deducting special items reached 4.49M yuan, up 17.4% YoY.

Chairman Zhao Chunwu of China Resources Beer explicitly stated that “the high-end strategy will not change,” and judged that the industry’s high-endization has entered the second half, with product structure gradually evolving from a “pyramid” to a “balanced” form. However, the Baijiu business’s revenue of 3.32M yuan, down 30.4% YoY, and the corresponding goodwill impairment still remain the main drag on overall performance.

Tsingtao Brewery has become a benchmark for “volume steady, quality improving.” The most distinctive feature in 2025 is “selling with better quality”: net profit after deducting non-recurring gains of 4.13 billion yuan, up 4.53%; gross profit margin of the beer business was 41.72%, up 1.61 percentage points YoY. Structural upgrading is the core support: main brand sales reached 4.494 million kiloliters, up 3.5%; mid-to-high-end products sales reached 3.318 million kiloliters, up 5.2%. Classic series, white beer, and ultra-high-end series continued to set new records, with white beer ranking first in the industry.

Tsingtao has built a product system covering different price segments, including classic 1903, August, and Pure Draft, and continues to launch niche products like light dry, super dry, and jasmine white beer. In the context of the industry’s top five companies holding over 90% market share and entering a stock competition, Tsingtao’s “volume steady, quality improving” is particularly commendable.

In contrast, Budweiser APAC’s high-end market is facing “siege.” Once synonymous with high-end catering and nightlife channels, Budweiser heavily relied on ready-to-drink channels, but the consumption scene in China has changed profoundly — non-ready-to-drink channels now account for about 60%, while Budweiser China’s share is just over 50%. This channel mismatch is directly reflected in financial data: in Q4 2025, Budweiser China’s sales volume decreased by 3.9% YoY, but revenue dropped 11.4%, and revenue per hectoliter declined 7.7%, forcing increased channel investments to cope with competition.

Meanwhile, domestic high-end products like China Resources “Heineken” and Tsingtao White Beer are rapidly eroding Budweiser’s high-end share. Budweiser APAC CEO Cheng Yanjun admitted, “In 2025, our performance in China did not reach its potential.” In 2026, the top priority for Budweiser in China is to “rekindle growth and rebuild market share.”

Yanjing Beer’s rapid profit growth is mainly due to the continued volume increase of flagship product Yanjing U8. In the first half of 2025, Yanjing U8’s sales exceeded 400k tons, accounting for 23% of total sales. Revenue from mid-to-high-end products increased from 62.86% in 2022 to 70.11%, and gross profit margin rose from 38.44% in 2022 to 45.66%. This marks Yanjing Beer’s fourth consecutive year of significant net profit growth.

However, concerns are emerging: the growth rate of revenue from mid-to-high-end products slowed from 10.61% in 2024 to 9.32% in 2025, and U8’s growth, which peaked at 50% in 2022, has clearly slowed. To find a “second growth curve,” Yanjing Beer launched the Yanjing A10 full-wheat special brew priced at 8 yuan in March 2026, and invited actor Hu Ge as global brand ambassador.

Chongqing Beer’s high-endization is steadily advancing, relying on scene innovation to break through. In the context of deepening stock competition, high-end products (8 yuan and above) achieved sales of 1.5043 million kiloliters in 2025, up 3.23%; sales revenue reached 8.78 billion yuan, up 2.19%.

Local brands like Wusu, Chongqing, Shancheng, Xixia, Dali, Fenghuaxueyue, and international brands like Carlsberg, Lübber, 1664, etc., form a brand portfolio. Relying on deep regional cultivation and nationwide penetration, Chongqing Beer has built a differentiated brand matrix.

The most regionally benchmarked high-end transformation is Zhujiang Beer. In 2025, high-end beer revenue was 400k yuan, up 10.98%, the fastest among the six; high-end products accounted for 76.20%, leading the industry, showing that Zhujiang Beer has basically completed the product structure shift from mass-market to high-end in South China. The core driver of high-endization is the “97 Pure Draft” flagship — which has established brand influence in the 8-10 yuan segment in Guangdong, and continues to promote the upgrade from “97 Pure Draft” to regular Pure Draft and zero-degree products.

Meanwhile, Zhujiang Beer actively improves its product matrix, launching products like 970ml large bottles of 97 Pure Draft, Zhujiang Beer 1985, Zhujiang P9, and 11 flavored beers and iterative upgrades in 2025, including Snow Beer craft peach infusion and Zhujiang Phoenix Single Lotus Tea Beer.

Breakthrough and Downward Shift

The competitive landscape of China’s beer industry is highly concentrated: the five major giants hold about 92% of the market share, forming an oligopoly. In terms of sales, the first tier (Budweiser APAC, Tsingtao, China Resources Beer) each exceeds 30 billion yuan in annual sales; the second tier (Chongqing Beer, Yanjing Beer) surpasses 10 billion yuan; below the five giants, Zhujiang Beer’s revenue exceeds 5 billion yuan, with other companies’ annual revenues generally not exceeding 5 billion.

In a context of industry saturation, regional market expansion and penetration have become new competitive focuses. The six companies’ regional strategies show clear differentiation: some deepen nationwide markets, others focus on regional strongholds.

“South China King” Zhujiang Beer’s revenue is highly concentrated in South China — in 2025, 95.66% of revenue came from Guangdong, with only 4.34% from other regions. This regional concentration is both its biggest feature distinguishing it from national giants and its confidence in tapping market potential.

South China benefits from ongoing population inflows and economic vitality. Zhujiang Beer, based in Guangdong, is expected to continue enjoying market dividends, driving volume and price increases. Under the “3+N” brand strategy, Zhujiang Beer is continuously upgrading high-end products like 97 Pure Draft, consolidating its market position in the over-8-yuan segment within the province, while also capturing share in the next-highest price segments lost by competitors.

Yanjing Beer’s revenue remains highly dependent on North China — in the first half of 2025, 56.67% of revenue came from North China, while South China, East China, Central China, and Northwest combined accounted for less than 44%. This regional concentration is relatively high among leading beer companies and poses potential risks; full national coverage remains a long-term goal.

Tsingtao’s national layout is the most balanced. It continues to promote “one arc, three wings, multiple points” overseas, with domestic on-premise/off-premise sales split at 40.3%/59.7%. Its products are sold in over 120 countries and regions, achieving first-time localization of production and sales in international markets.

Chongqing Beer is a deep regional player in the West. It has a brand portfolio combining local brands (Wusu, Chongqing, Shancheng, Xixia, Dali, Fenghuaxueyue, etc.) and international brands (Carlsberg, Löwenbräu, 1664, etc.), relying on regional deep cultivation and nationwide penetration to build a differentiated brand matrix.

China Resources Beer and Budweiser APAC, as national giants, are in a balancing act: China Resources continues to consolidate market share through the nationwide deployment of high-end brands like “Heineken,” while Budweiser faces pain points in regional penetration amid channel transformation.

It is noteworthy that in 2025, beer consumption is rapidly shifting from on-premise scenes like restaurants and nightlife to home, outdoor, and online channels — the rise of instant retail is reshaping industry logic.

China Resources Beer Chairman Zhao Chunwu pointed out at the earnings conference that the proportion of on-premise versus off-premise has reversed from about 55:45; in some scenes, on-premise even accounts for less. China Resources has deep cooperation with Alibaba, Meituan Flash Purchase, JD.com, etc., with online GMV in the first half of 2025 increasing by nearly 40% and 50%, respectively.

Tsingtao has built over 1,000 “fresh delivery” stores in 30 key cities nationwide, creating a “30-minute fresh circle,” with online sales growing for 13 consecutive years. Chongqing Beer regards instant retail and catering channels as complementary, with new 1L products becoming key growth drivers in non-on-premise channels. The company plans to further increase investment in instant retail and develop O2O home-to-store full development.

Zhujiang Beer shows unique advantages in channel transformation — non-on-premise channels account for over 70%, performing more steadily amid weak catering. In 2025, Zhujiang’s supermarket channel revenue grew 35.06% YoY, and e-commerce revenue surged 342.33% YoY — explosive growth in online channels is closely related to the company’s strengthening of new retail channels like O2O. Meanwhile, Zhujiang Beer is actively expanding new scenes, collaborating with Qu Qu Ya Bo to co-brand three cultural and creative cans, extending product value, and hosting events like Zhujiang Beer Festival and Zhujiang Pali Food Festival.

In contrast, Budweiser APAC’s over-reliance on ready-to-drink channels has caused significant lag in channel transformation, which is a core reason for its continuous decline in China. In 2025, contributions from non-ready-to-drink and O2O channels to sales volume and revenue have increased, and digital tools like BEES now cover over 320 Chinese cities, but short-term correction of channel structural biases remains difficult.

Channel structure shifts not only change the competitive landscape but also profoundly impact corporate profitability models. Non-on-premise channels (especially instant retail) shorten distribution chains, reduce channel costs, and support profit margin improvements. As Chongqing Beer President Li Zhigang said, the rise of instant retail reflects an irreversible change in consumer psychology — many users can no longer tolerate waiting until the next day for delivery after placing an order.

Today, the competitive logic of the beer industry has shifted from “price band” to “value-for-money enhancement,” with consumers paying increasing attention to raw materials, flavor, and personalized experience. Guotai Haitong Securities’ research report states that “Generation Z” is gradually becoming the main consumer force, and drinking culture is shifting from “pleasing others” to “pleasing oneself,” with exploring new scenes and offering differentiated emotional value becoming the main direction for new product development.

Summary

The 2025 beer industry financial reports reveal a clear signal: in an era of peak total volume, growth momentum has shifted from “scaling up” to “optimizing structure.” High-end capability, channel transformation speed, and cost control level are the three core variables determining success. The performance differentiation among the six companies essentially reflects a competition of these three capabilities.

From Zhujiang Beer to Tsingtao, from Yanjing to Chongqing, companies with effective high-end transformation have delivered impressive profits; those overly reliant on traditional channels and with a single high-end product matrix have fallen into passivity amid industry changes. As industry concentration continues to rise, with the top five companies holding over 90% of the market share, Zhujiang Beer’s emergence as the “South China King” in the six-strong group demonstrates that regional leaders can also break through in a stock-based competition era through differentiated strategies.

For the six listed beer companies, 2026 will be a true test of “internal strength”: China Resources Beer needs to prove that the adjustments in Baijiu business are only temporary pain, not a long-term issue; Budweiser APAC must find a rebound point in channel transformation; Yanjing faces a critical transition from “single product-driven” to “product matrix”; Tsingtao and Chongqing need to continue expanding their structural advantages amid steady growth; Zhujiang Beer must defend its South China base while making more solid strides into outside regional markets. This battle of differentiation in a stock-based era is far from over.