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Have you noticed a phenomenon? Nowadays, when you walk into any convenience store, supermarket, or dining establishment, those once ubiquitous brand-name beers priced under 6 yuan per unit – whether classic bottled or convenient canned – are visibly disappearing. Of course, there is one exception: when products are offered on special promotion. Interestingly, this "upward" price trend stands in stark contrast to the "downward" movement seen in other alcoholic beverages: Baijiu companies are busy launching plain-bottled products priced under 100 yuan, wine brands are constantly pushing their price points lower, and even categories like rice wine and ready-to-drink cocktails are adopting more affordable strategies. Only the beer industry seems to be collectively moving in the opposite direction...

This consumption trend in the alcohol industry inevitably led China Liquor News reporters to ponder: What forces are driving beer prices ever higher? In this seemingly collective "price hike" wave, could beer, like the "ice cream assassins" of yesteryear, become an unexpected "beer assassin" that catches consumers off guard?

First, let's consider beer itself. Pressure on the cost side is an undeniable primary factor. In recent years, barley, a key ingredient in brewing beer, has seen volatile production in major producing countries due to global climate change. The resulting supply shortage has caused its price to rise continuously. Simultaneously, the prices of other raw materials like hops and yeast have also increased. Moreover, packaging costs have risen significantly; the prices of glass bottles, aluminum cans, etc., have surged due to rising raw material and energy costs. Comprehensive calculations show that the combined cost of brewing materials and packaging materials exceeds 60% of the total cost.

Furthermore, changes in the consumer market have profoundly impacted beer prices. Today, consumer attitudes towards drinking have undergone a significant shift. They are no longer satisfied solely with "thirst-quenching" guzzling but place greater emphasis on quality and taste experience. Driven by this trend, craft beer has emerged as a force, favored by many consumers for its unique flavors and diverse choices. It's important to note that the brewing process for craft beer is more complex and uses higher-quality ingredients, inherently resulting in higher costs. This has, to some extent, elevated the overall price range of beer.

Influenced by this, consumer demand for premium and specialty beers has grown increasingly strong. Beer companies have consequently adjusted their product portfolios, channeling more resources into the research, development, and promotion of mid-to-high-end products while gradually reducing the production of low-priced offerings. This further accelerates the disappearance of beers priced under 6 yuan per unit from the market.

Additionally, after years of consolidation, the beer industry has seen continuously increasing market concentration. Leading companies like CRB (China Resources Beer), Tsingtao, Yanjing, and Budweiser dominate most of the market share. Leveraging their brand influence and channel advantages, they are more confident in raising prices when costs increase. More specifically, to enhance brand image and profit margins, these leading companies vigorously promote mid-to-high-end products, leading the industry's price upward trend. In contrast, the baijiu and wine markets are relatively fragmented, forcing numerous small and medium-sized brands to compete for survival and growth primarily through low-price strategies.

However, a cause for concern is that within this premiumization wave, many traps of "pseudo-upgrades" lurk. Some companies play a game of "grafting" or "rebranding tricks": repackaging an industrial beer originally priced at 5 yuan and labeling it as 9 yuan; so-called "craft brewing techniques" amounting to nothing more than adding flavorings to ordinary lager beer; or "limited edition" gimmicks masking unchanged recipes. These "face-changing tricks" not only erode consumer trust but also blur the line between quality beer and mass-produced industrial beverages.

As beer gradually sheds its image as an "affordable beverage of joy," it risks accelerating its own transition into a niche product.