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Description

Description

“The unshakable leading position of baijiu does not mean the alcohol category has remained unchanged. The growth of Western spirits and the shift in purchase channels remind current players to stay vigilant. As the young generation become more important to the category, innovation answering their needs may serve as inspiration for further growth.”

- Loris Li, Category Director

This report will look at the following areas:

  • Soft drink-like, low-alcohol choice for young women
  • Rising Jägermeister becomes a challenger
  • Alcohol served in small portions – the next mood food?

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
        • Definitions
          • Monthly household income
            • Figure 1: Mintel’s definition of different income groups, China
          • Alcohol lovers
          • Executive Summary

              • The market
                • Premiumisation driving growth of baijiu and beer
                  • Figure 2: Sales value of spirits market (RMB mn), China, 2018-2019 (est)
                • Seeking growth opportunities by expanding targets or occasions
                  • Figure 3: Market segmentation by sales value of China’s alcoholic drinks (%), 2019 (est)
                • E-commerce shuffle – brand flagship stores and distributors
                  • Companies and brands
                    • Foreign spirits thriving while baijiu brands face polarized circumstances
                      • Beer giants grab more share and take lead in premiumisation
                        • Crossovers with national pride brands from remote categories
                          • The consumer
                            • Women make up a greater share of the alcohol category
                              • Figure 4: Consumption change of different types of alcoholic drinks, China, September 2019
                            • Soft drinks taking share from alcoholic beverages
                              • Figure 5: Ways of drinking less alcoholic drinks, China, September 2019
                            • Convenience stores a winning territory among post-95s
                              • Figure 6: Purchase channel of alcoholic drinks, China, September 2019
                            • Relaxation the third most popular reason for buying alcohol
                              • Figure 7: Reasons for purchasing alcoholic drinks, China, September 2019
                            • Champagne/sparkling wine expecting expansion in the near future
                              • Figure 8: Alcoholic drinks that will be drunk more in the future, China, September 2019
                            • Sweetness and sourness preferred as icing on the cake
                              • Figure 9: Food and drink mixed with alcoholic drinks, China, September 2019
                            • What we think
                            • Issues and Insights

                              • Soft drink-like, low-alcohol choice for young women
                                • The facts
                                  • The implications
                                    • Figure 10: Rum-based carbonated alcoholic drink with juice, Japan, 2019
                                    • Figure 11: Rum-based carbonated alcoholic drink with juice, Japan, 2019
                                    • Figure 12: Ritas beer targeting females, US, 2019
                                  • Rising Jägermeister becomes a challenger
                                    • The facts
                                      • The implications
                                        • Figure 13: “Jägermeister” search index on Baidu, China, 2018-19
                                        • Figure 14: “Jägermeister” in Baidu index, China, 2018-19
                                        • Figure 15: Kuemmerling, Germany, 2018
                                      • Alcohol served in small portions – the next mood food?
                                        • The facts
                                          • The implications
                                            • Figure 16: Maker’s Mark Bourbon Whisky set with a tumbler, Germany, 2018
                                            • Figure 17: Alcohol-free wine, UK, 2019
                                        • The Market – What You Need to Know

                                          • Spirits and RTD are growing while wine faces difficulties
                                            • Beer stakes big on premiumisation
                                              • E-commerce channel refreshes the dynamics of the category
                                              • Market Size

                                                • Western spirits enjoy higher growth rate than baijiu
                                                  • Figure 18: Sales value of spirits market (RMB mn), China, 2018-2019 (est)
                                                • Wine sees decline in domestic production and import value
                                                  • Figure 19: Sales value of wine (bottled) market (RMB mn), China, 2018-2019 (est)
                                                • Beer relies on premiumisation to drive value sales
                                                  • Figure 20: Sales value of beer market (RMB mn), China, 2018-2019 (est)
                                                • RTD alcoholic drinks have seen recovery in 2018 and 2019
                                                  • Figure 21: Sales value of RTD alcoholic drinks market (RMB mn), China, 2018-2019 (est)
                                              • Market Segmentation

                                                • The dominant status of baijiu is unshakable
                                                  • Figure 22: Market segmentation by sales value of China’s alcoholic drinks (%), 2019 (est)
                                                • Other sub-categories need to explore new consumption occasions
                                                • Market Factors

                                                  • Changing demographic structure poses threat for the future
                                                    • Consumption tax on the way
                                                      • Complicated dynamics in the wine battlefield
                                                        • E-commerce shuffle – brand flagship stores and distributors
                                                          • Figure 23: Lady Penguin’s video clip of tasting Jägermeister on product page, China, 2019
                                                        • Changing demographic structure poses threat for the future
                                                          • Consumption tax on the way
                                                          • Key Players – What You Need to Know

                                                            • International groups benefit from spirits market
                                                              • Domestic baijiu brands experienced polarized circumstances
                                                                • Beer giants grab more share and take lead in premiumisation
                                                                  • RTD alcoholic brands create their own position and occasions
                                                                  • Competitive Strategies

                                                                    • Respond to the new channel dynamics
                                                                      • Figure 24: Special/limited edition alcohol for convenience store channel, China, 2018-19
                                                                      • Figure 25: Hema-branded beer, China, 2018
                                                                    • Japanese spirits planning to catch more attention
                                                                      • Figure 26: Special/limited edition of alcohol for convenience store channel, China, 2018-19
                                                                    • International giants creating local-relevant products
                                                                    • Who’s Innovating?

                                                                      • Crossovers with nation pride brands from remote categories
                                                                        • Figure 27: RIO’s crossover with Hero ink, China, 2019
                                                                        • Figure 28: Lu Zhou Lao Jiao’s ice cream, China, 2019
                                                                      • Better usage experience embedded in packaging innovation
                                                                        • Figure 29: Package design with visual aids on temperature and detailed usage instruction with visuals, China, 2019
                                                                      • Alcohol mixed with coffee targeting more occasions
                                                                        • Figure 30: Jägermeister Cold Brew Coffee liquor, UK, 2019
                                                                      • Gin made in China
                                                                        • Figure 31: Brand Instagram presenting perceivable elements of its birth city Shanghai, China, 2019
                                                                    • The Consumer – What You Need to Know

                                                                      • Females becoming more active in the alcoholic drink category
                                                                        • Alcohol with a foreign note rising among certain sub-groups
                                                                          • Online and c-store channels getting more attention among the post-90s
                                                                          • Consumption Change

                                                                            • Women make up a greater share in the alcohol category
                                                                              • Figure 32: Consumption change of different types of alcoholic drinks, China, September 2019
                                                                              • Figure 33: Flavoured alcoholic drink with feminine packaging, China, 2019
                                                                              • Figure 34: Different types of alcoholic drinks that are drunk more, by gender and age, China, September 2019
                                                                            • Tier one cities expanding into niche spirits
                                                                              • Figure 35: different types of alcoholic drinks that are drunk more, by city tier, China, September 2019
                                                                          • Ways of Drinking Less

                                                                            • Soft drinks taking share from alcoholic beverages
                                                                              • Figure 36: Ways of drinking less alcoholic drinks, China, September 2019
                                                                            • Difficult for males to resist the pleasure of alcohol
                                                                              • Figure 37: Ways of drinking less alcoholic drinks, by gender and age, China, September 2019
                                                                            • High earners choosing not to leave alcohol for good
                                                                              • Figure 38: Ways of drinking less alcoholic drinks, by monthly personal income, China, September 2019
                                                                            • Foreign spirit lovers opt for non-alcoholic substitutes or reduced quantity
                                                                              • Figure 39: Ways of drinking less alcoholic drinks, by different alcohol lovers, China, September 2019
                                                                          • Purchase Channel

                                                                            • Convenience stores a winning territory among post-95s
                                                                              • Figure 40: Purchase channel of alcoholic drinks, China, September 2019
                                                                            • Overhaul in wine channels
                                                                              • Figure 41: Purchase channel of wine, by ways of drinking less, China, September 2019
                                                                            • Gatekeepers purchasing beer when grocery shopping
                                                                              • Figure 42: Purchase channel of beer, by family structure, China, September 2019
                                                                            • Different dynamics in Western spirits purchase by city tier
                                                                              • Figure 43: Purchase channels of Western spirits, by city tier, China, September 2019
                                                                          • Purchase Reasons

                                                                            • Relaxation is the third most popular reason for buying alcohol
                                                                              • Figure 44: Reasons for purchasing alcoholic drinks, China, September 2019
                                                                              • Figure 45: Haier’s wine fridge picturing an indulging moment with wine, China, 2019
                                                                            • Young females attracted by category innovation
                                                                              • Figure 46: Reasons for purchasing alcoholic drinks, by age, China, September 2019
                                                                            • Managers and white-collar workers are more used to Western alcohol lifestyle
                                                                              • Figure 47: Reasons for purchasing alcoholic drinks, by age, China, September 2019
                                                                          • Future Trends

                                                                            • Champagne/sparkling wine expecting expansion in the near future
                                                                              • Figure 48: Alcoholic drinks that will be drunk more in the future, China, September 2019
                                                                            • Win young females’ hearts with a bit of sweetness
                                                                              • Figure 49: Alcoholic drinks that will be drunk more in the future, China, September 2019
                                                                          • Fusion Opportunity

                                                                            • Sweetness and sourness preferred as icing on the cake
                                                                              • Figure 50: Food and drink mixed with alcoholic drinks, China, September 2019
                                                                              • Figure 51: Percentage of consumers who have tried and liked different mixes, China, September 2019
                                                                              • Figure 52: RTD coffee with explanation of cold brew on package, China, 2017
                                                                            • Young females love to explore
                                                                              • Figure 53: Food and drink mixed with alcoholic drinks, “have not tried but interested”, by gender and age, September 2019
                                                                            • Ice cream preferred with gin, rum and whisky
                                                                              • Figure 54: Ice cream mixed with different types of alcoholic drinks, September 2019
                                                                          • Meet the Mintropolitans

                                                                            • Baijiu is less involved in MinTs future drinking plans
                                                                              • Figure 55: Different types of alcoholic drinks claimed to be drunk more, by consumer classification, China, September 2019
                                                                            • MinTs have more social needs in their alcohol purchase
                                                                              • Figure 56: Reasons for purchasing alcoholic drinks, by income, job and consumer classification, China, September 2019
                                                                              • Figure 57: Opportunities of RTD coffee premiumisation, by consumer classification, China, July 2018
                                                                          • Appendix – Methodology, Definition, and Abbreviations

                                                                            • Methodology
                                                                              • Fan chart forecast
                                                                                • Abbreviations

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