Goldman Sachs has released a research report highlighting the underperformance of China’s beer industry in 2023, with the sector lagging behind the MSCI China Index. The report attributes this trend to ongoing deflationary pressures and broader macroeconomic uncertainty in the country.
Looking ahead, Goldman Sachs forecasts that the beer industry will see limited growth this year. With inflation in China expected to remain low and the recovery in domestic demand projected to fluctuate, the firm estimates a modest 0.5% growth in sales volume and a 1.8% increase in average selling prices (ASP), resulting in a 2.3% overall rise in the industry’s total value.
Despite the challenging macroeconomic conditions, Goldman Sachs has maintained a positive outlook on several major beer producers. The firm reiterated its “Buy” rating for stocks including Tsingtao Brewery (00168.HK), China Resources Beer (00291.HK), and Budweiser APAC (01876.HK). Updated target prices for these companies have been provided in the accompanying table.
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