(Yicai) Aug. 6 -- China’s beer sales have been unusually weak this summer, despite major sporting events like the FIFA World Cup. Widespread declines across regions and brands have been seen, while growth is increasingly concentrated in niche categories such as fruit, tea, and craft beers.

During the six months ended June 30, beer sales fell in North, East, and South China by 11 percent, 4.5 percent, and 6.9 percent, respectively, from a year earlier, according to data from Brandct.Com. In Central, Southwest, and Northeast China, they dropped 7.8 percent, 19 percent, and 7.4 percent, respectively.

Budweiser Brewing Company APAC’s sales in the Chinese market slumped nearly 10 percent in the second quarter from a year ago, with related revenue down 8.6 percent, according to the Hong Kong-based industry giant's most recent financial statement.

Although beer consumption is generally faring better than that of baijiu -- a traditional fiery Chinese spirit -- or wine, Sheng Mintai, a beer distributor from Jinan, told Yicai, adding that the decline in consumer demand has led to reduced orders, leaving him feeling powerless to turn the situation around.

Large sporting events such as the World Cup have historically boosted beer consumption. But as most matches in this year's tournament were scheduled in the middle of the night, it had a very limited impact on sales. Some distributors even said they did not feel the “World Cup effect” at all.

“We've been operating for many years, but this is the first time we've experienced a decline in performance,” said an executive at a medium-sized brewer told Yicai. In previous years, the peak beer-drinking season typically began after May, but this year sales volumes are decreasing.

Still-weak consumer spending has suppressed the demand for beer, the executive noted. This summer, higher rainfall has impacted sales at venues, including outdoor eateries and nightclubs. Moreover, beer is losing market share to other low-alcohol beverages such as rice wine and huangjiu, a Chinese yellow wine.

But not all beer categories are under pressure. First-half sales of distinctive varieties, such as fruit beer, surged nearly 45 percent from a year earlier, and tea-infused beer and craft beer sales rose 24 percent and 2.3 percent, respectively, according to Brandct.Com.

In comparison, sales of mainstream products like pale lagers tumbled 10 percent, draft beer dropped 6.1 percent, and draft beer plunged 25 percent, the data also showed.

Beer drinkers are increasingly focused on the overall experience rather than simply buying a product, Zhou Qiang, founder of a craft beer company, told Yicai. Smaller breweries are often better positioned to develop distinctive and customized products, giving them opportunities to compete through innovation and differentiation, he noted.

The need for differentiation is increasingly recognized across the industry. Brewers need to continue upgrading products and developing new sales channels and business models, while simultaneously creating immersive and interactive consumer experiences, Jiang Zongxiang, chairman of Tsingtao Brewery, has said.

Editors: Tang Shihua, Futura Costaglione