According to the 2023 interim report of Chongqing Brewery — which represents Carlsberg China — its revenue, profits and sales have climbed to record highs, with first-half sales up 4.76 percent at 1.72 million kl, revenue 7.17 percent higher at 8.5 billion yuan and net profit soaring 18.89 percent to 865 million yuan year-on-year.

The company expects to maintain momentum in China in the second half robust to realize high single-digit growth for the full year of 2023.

Chongqing Brewery is among the top beer producers in the country, and its business was booming in the first half.

CR Beer, Tsingtao Beer and Yanjing Beer recorded double-digit growth in net profits of 22.3 percent, 20.22 percent and 46.57 percent, respectively, in the first half. Revenue of the top three reached 23.8 billion yuan, 21.5 billion yuan and 7.6 billion yuan.

For example, high-end products from Yanjing Beer grew 12.81 percent in the first half, compared with a year earlier, mainly by embracing young consumers and focusing on high-end products.

Among high-end players, Budweiser APAC, according to its 2023 interim report, achieved revenue of $3.6 billion during the first half, an increase of 6.17 percent year-on-year. Net profit attributable to the parent company was $575 million, a decrease of 8 percent.

In the first half, the company's total sales volume in China increased by 9.4 percent and its revenue by 15.4 percent year-on-year, respectively. The premium and super-premium segments both grew by double digits in the first half.

Budweiser APAC's revenue in 2022 was $6.48 billion, a decrease of 4.57 percent year-on-year. Net profit attributable to the parent company was $913 million, a decline of 3.9 percent.

An SPDB International report said Budweiser's medium- to long-term growth logic is not as solid as those of Chinese beer companies. Compared to Chinese brewers, Budweiser APAC has a relatively high proportion of sales of high-end and ultra high-end products (reaching over 50 percent), and the marginal profit margin expansion effect brought by future high-end transformation is relatively weak.

Beer production costs have become a more visible concern for the industry since 2021. The production costs of beer mainly include raw materials (barley, rice, hops), packaging materials (aluminum, glass, corrugated paper), labor costs and other manufacturing expenses. To ease price pressures, most breweries have raised prices for their core products. Meanwhile, the high external dependence on barley and hops are bottlenecks for the development of the beer industry, said industry experts.