As the craft brewing industry in Canada has grown, so has the global recognition of Canadian craft beer. There has never been a better time to export your beer.
To expand your market beyond Canada's relatively small craft beer market, consider entering the Chinese e-commerce market. Here's why.
All recent Canadian beer exports went to the US market. But US demand Canadian beer is decreasing and between 2015 and 2021, Canadian beer exports dropped 14.2%.
World’s Largest eCommerce Market
Valued at nearly US$ 3 trillion, the Chinese e-market is the largest in the world, generating over 52 percent of the world's transactions, more than North America's and Europe's combined. Moreover, it is the first and only country where online sales exceed traditional retail sales.
The Chinese e-market has over 842 million online customers across China, more than twice the US and Canada's combined population.
World’s Largest Beer Market
China overtook America to become the world's biggest market for beer by volume and represents 12% of beer global sales. Analysts expect the market to grow annually by 5.06%. Young Chinese consumers, representing more than 65 percent of beer purchases in China, are acquiring a taste for international premium products and are willing to pay top dollar for quality, uniqueness, and freshness. Things Canadian craft beer has in droves.
Imported craft beer in China will grow exponentially over the next few decades.
The craft beer market in China is still immature, representing less than 0.1% of the beer market. However, industry sources estimated that craft beer would grow exponentially over the next few decades, showing a change in consumer preference toward new flavours and varieties.
Canada is China's 35th largest import partner for beer. There is plenty of opportunity for Canadian breweries!
The Canadian craft beer market is saturated. And beer exports to the US are decreasing.
No Canadian brewers are handing people in China a beer. All recent Canadian beer exports went to the US market. But US demand for Canadian beer is decreasing, and between 2015 and 2021, Canadian beer exports dropped 14.2%.
The Canadian domestic beer market is also becoming more saturated. More than 85% of Canadian beers were sold and consumed locally. In the last five years, the number of local brewers increased by 115%. The business density soared by 100%. But domestic beer consumption is decreasing. Beer sales fell 6.6%, and per capita consumption dropped 12.6% from 2015 to 2021.
Early adopters will gain a significant share of the Chinese market.
Now is the time to consider exporting to China’s eCommerce market. Canada is known for some of the best barley in the world and has a growing reputation for great beer. With Chinese beer drinkers turning away from cheap local brews toward premium products and imported beers, Canadian brewers can leverage this reputation and market their products for significant margin gains.
Riding the Wave of Cross-border eCommerce Opportunity
Cross-border e-commerce (CBEC) provides Canadian craft beer exporters with a growing retail channel to reach Chinese consumers. Products sold through CBEC enjoy no import tariffs and reduced value-added taxes compared to traditionally imported products. Due to preferential tax and import policies, imports have grown from just $800 million to an estimated $30 billion in only six years. CBEC is mainly used to meet urban upper-middle-class demand for high-quality imported foods, cosmetics, luxury items, and baby products. CBEC buyers are typically looking for authentic imported products that have not been reformulated or repackaged for sale in China.
For many businesses, exporting can be daunting. We will help to make the export process less complicated by providing Canadian craft beer breweries with a customized and hands-on solution.
Assess the organizational readiness, new market feasibility, competition, and risks
Develop a tailored market-entry strategy
4. SUPPLY CHAIN ESTABLISHMENT
Soft launch & operational adjustment
Diversifying market-entry strategy
2. PREPARING FOR EXPORT
Beer product selection
Pricing strategy optimization
3. EXPORT DOCUMENT MANAGEMENT
Export account registration with CRA
Food safety licenses and certifications registrations
Harmonized System Codes identification
5. PLATFORM INTEGRATING
Backend system integration, i.e., CRM, ERP
Marketing plan development
Frontend platform design
Inbound marketing establishment, i.e., SEO, PPC
Ongoing operations management
Promotions & sales campaigns
Customer pre- and after-sales services