China Foreign Spirits Market Report 2024

In general, dark spirits such as whisky and brandy are often associated with maturity, complexity and depth of flavour. These spirits are characterised by their ageing process and distinctive barrel flavours, with marketing highlighting their rich aroma and multi-layered taste profiles. These brands often tell their story by showcasing their deep history, heritage and brewing craftsmanship. Innovations in limited and collectors’ editions are driving their cultural appeal. Additionally, limited editions and collector’s items have become one of the innovative directions, making them more attractive to spirit connoisseurs. In contrast, white spirits like vodka and tequila are typically linked with modernity, innovation and versatility. Brands may highlight their purity and refreshing qualities to attract younger, trend-conscious consumers. Marketing of white spirits often centres around their suitability as cocktail bases, showcasing innovative bottle designs and serving suggestions, catering to modern consumers’ demand for style and convenience. That said, fresh marketing approaches are constantly emerging and injecting vitality into the spirits sector.

This report looks at the following areas:

Due to both macro and micro factors, consumers are increasingly cautious about purchasing foreign spirits. Each category should leverage its unique characteristics to find a way to break through in the market.

Marta Zhang, Senior Analyst, China Insights

Market Definitions

This Report covers all foreign spirits (distilled beverages) and liqueurs (flavoured with fruit and herbs) in both retail and on-trade (HoReCa) channels, produced in foreign markets and then sold in China, as follows:

• Anis/absinthe includes absinthe, arak and similar spirits.
• Brandies and brandy types include spirits derived from grapes/grape skins and include cognac, Armagnac, fruit-based and traditional brandies and related spirits.
• Gin-based includes gin, genever and ginebra.
• Rum/sugar cane-based includes white and dark rum, ron & caña, aguardiente and other local sugar-based spirits.
• Tequila includes tequila of all ages.
• Vodka-based includes premium, standard and economy vodkas, aquavit and Scandinavian schnapps.
• Whiskies include Scotch (whisky), Irish whiskey, Bourbon and other (local) whiskies.
• Asian spirits include Japanese sake/shochu and Korean soju.

Dark spirits are typically aged in oak barrels that impart a distinctive colour and flavour. Common dark spirits include whisky/bourbon, brandy and dark rum. White spirits are unaged or aged for a short period, resulting in a colourless or near-colourless appearance. Common white spirits include vodka, gin/genever, silver tequila and white rum.

The market size only includes Western spirits. It excludes Asian spirits and the following categories:

• Fortified, rice, yellow (huangjiu 黄酒) and related wines with some form of fermentation
• Ready-to-drink (RTD) mixers such as Breezers; RTD cocktails and long drinks
• Fortified wines (sherry, port, vermouth with some fermentation)
• Rice wine, yellow and other strong fermented wines
• Beer.