Despite efforts to stimulate the economy, Carlsberg expects the China market to continue to shrink

Overall beer volumes in China fell by around 5% during the first nine months of 2024 said Carlsberg CEO Jacob Aarup-Andersen in an interview with Just Drinks. Although the company is pleased with its relative performance, it does not expect the Chinese beer market to return to positive growth next year.

The company forecasts a continued decline, albeit slightly less severe than this year’s significant downturn. The expectation is that the market will perform a bit better in 2025 but will still contract.

China has implemented a series of stimulus packages aimed at boosting the economy and consumer spending. However, these measures have yet to make a substantial impact on consumer behaviour, according to Aarup-Andersen.

The effectiveness of future government stimulus efforts remains uncertain and will largely depend on the actions taken by Chinese authorities in the coming months. Given this uncertainty, Carlsberg is focusing on executing its own strategic initiatives in China, particularly expanding its presence in major cities to strengthen its position in key urban centres and will leverage its current brand portfolio.

This marks the third consecutive year of challenges in the Chinese beer market for Carlsberg. Despite this, the company said it remains committed to navigating through the current difficult environment.