Breweries across China experienced varied outcomes in the first half, as wet weather and a sluggish market impacted sales.

However, a promising trend was seen with the continued emphasis on high-end strategies, with several companies reporting growth in premium beer segments despite broader challenges.

Chongqing Brewery Co Ltd reported strong financial results for the first half, highlighting the company's strategic focus on premium products and market expansion.

From January to June, the company saw revenue rise to 8.86 billion yuan ($1.24 billion), up 4.18 percent year-on-year, while net profit increased by 4.19 percent to 901 million yuan.

Chongqing Brewery attributes its growth to a robust high-end product portfolio, including local and international brands such as Carlsberg, Tuborg, 1664, Wusu and Chongqing.

Lee Chee Kong, president of Carlsberg China and Chongqing Brewery, said the company's premium brands — particularly Carlsberg and Tuborg — achieved double-digit revenue growth. Despite the favorable impact of numerous sporting events during the summer, Lee said frequent rainfall slightly dampened beer sales.

He said he is confident about untapped potential in China's high-end beer segment.

"While the share of premium beer remains lower in China compared to European and US markets, the country's growing middle-income families suggest significant room for expansion. As incomes rise, consumers are increasingly willing to explore premium options, with quality beers at affordable prices," Lee added.

As consumer lifestyles and attitudes change, the focus is shifting toward creating more dynamic experiences for younger consumers.

Zhu Danpeng, an independent food and beverage analyst, said that crafting products tailored to specific social contexts and scenes could drive incremental growth in the high-end beer market.

In response to these market dynamics, Chongqing Brewery has positioned its brands to align with various consumer experiences.

For example, the Wusu brand is widely featured at food festivals, food stall streets and barbecue venues, while the Chongqing brand — headquartered in the city considered the capital of hotpot in China — is closely associated with the hot pot experience. The French brand 1664 is marketed for fashion-forward and party scenes, enhancing its appeal among younger consumers.

Further expanding its footprint, the Jing-A craft beer brand launched new premium flavors and accelerated its business model, bringing the brand's total store count to 11 across Beijing and Shenzhen, Guangdong province.

Chongqing Brewery's performance has outpaced the broader industry.

The National Bureau of Statistics said Chinese enterprises above a designated size saw a modest 0.1 percent increase in beer production, totaling 19.1 million kiloliters in the first half.

For Budweiser Brewing APAC, in the Chinese market, second quarter beer sales volume fell 10.3 percent. The beermaker cited a soft industry environment and adverse weather as the main reasons for the decline. Its revenue in the market fell 15.2 percent.

Despite the setback, the company saw its margins return to pre-COVID levels in the first half, driven by ongoing premiumization efforts as well as cost management initiatives.

The company said innovations with the Budweiser family of brands, including Supreme and Magnum, are key contributors to expanding its revenue.

Another leading brewery, China Resources Beer, reported revenue of 23.7 billion yuan from January to June, a slight decrease of 0.53 percent year-on-year. Profit attributable to shareholders was 4.71 billion yuan, up 1.2 percent.

The company said the proportion of mid-range beer sales exceeded 50 percent for the first time during the period.

Sales of second-tier beers achieved a single-digit increase compared to the same period last year, while sales of high-end beer grew by more than 10 percent.

Hou Xiaohai, chairman of the board of directors of China Resources Beer, said that the trend of high-end beer consumption in China will endure over the long term, and the growth rate of high-end beer products could more than double in the future.