2024
8
China Foreign Spirits Market Report 2024
2024-11-05T12:03:03+00:00
REPD822E9C0_0595_43E3_B031_A3929FC4601B
3695
177126
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Report
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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…
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  8. Spirits and RTD
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  10. China Foreign Spirits Market Report 2024

China Foreign Spirits Market Report 2024

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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:

  • Current status and competitive landscape of the Western spirits market
  • Western spirits market size and future outlook
  • Foreign spirit consumption trends and usage occasions
  • Price preferences and comparisons between different foreign spirits
  • Perceptions of foreign spirits marketing activities
  • Interest in novel spirits and category blurring

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.
Collapse All
  1. Executive summary

    • Key issues covered in this Report
    • Definition
    • What you need to know
    • The market
    • The Western spirits market faces challenges amid market turbulence
    • Market factors
    • Market segmentation
    • Graph 1: value share of Western spirits imports, by segment, 2020-24
    • Companies and brands
    • Spirits market share is concentrated among leading companies
    • Key trends in marketing activities
    • New product key trends
    • Product examples reflecting the above trends
    • The consumer
    • Dark spirits dominate, and more mindful drinking has not eroded consumer interest in alcoholic drinks
    • Graph 2: interest in trying* select spirits, 2018 vs 2024
    • Graph 3: usage of spirits, 2024
    • At-home and bar drinking top the list of usage occasions
    • Graph 4: usage occasions, 2024
    • The price threshold of spirits is rising, highlighting the trend of 'drinking less but better'
    • Graph 5: price preference, 2024
    • Unique flavours encourage trial of new spirits
    • Graph 6: motivations for trying foreign spirits, 2024
    • Tastings lead the way in delivering premium experiences
    • Graph 7: premium perceptions of marketing activities, 2024
    • Fruit-flavoured spirits attract the most interest
    • Graph 8: interest in novel spirits, 2024
    • Graph 9: interest in novel spirits (net), 2024
    • Spirit-flavoured carbonated drinks are the most popular, paving the way for category extension
    • Graph 10: flavour blurring, 2024
    • Issues and insights
    • What we think
  2. The market

    • Market size and forecast
    • Western spirits face challenges, ecommerce channels become growth highlights
    • 2024 may see difficulties in maintaining spirits sales growth
    • Market factors
    • Macroeconomic pressures are weakening the demand for alcohol and intensifying competition
    • Graph 11: % of consumers who plan to trade up vs trade down – alcoholic drinks, 2022-24
    • Graph 12: % of consumers who plan to switch brands – alcoholic drinks, 2022-24
    • The anti-dumping investigation into EU brandy imports may have knock-on effects
    • Travel retail channels are bouncing back
    • Market segmentation
    • Traditional spirits still dominate
    • Graph 13: value share of Western spirits imports, by segment, 2020-24
    • The import volume of niche spirits is growing
    • Graph 14: volume share of Western spirits imports, by segment, 2020-24
  3. Companies and brands

    • Market share
    • Market concentration is increasing amid macroeconomic challenges
    • Marketing activities
    • Overview
    • Approach CSR from multiple perspectives
    • Expanding the scope of artistic collaborations
    • Promote an active lifestyle through sports collaborations
    • Connect with the modern consumer by echoing trending topics
    • New product trends
    • Wines from niche regions are emerging in the Chinese market
    • Brands are expanding the 'distilled in China' concept into new categories
    • Multiple brands launch anniversary premium lines
    • RTD formats continue to innovate
    • Sustainability continues to break new ground in product development
  4. The consumer

    • Usage of spirits
    • Dark spirits lead in penetration
    • Graph 15: interest in trying* select spirits, 2024
    • Graph 16: usage of spirits, 2024
    • More mindful drinking has not eroded consumer interest in alcoholic drinks
    • Graph 17: interest in trying* select spirits, 2024
    • Graph 18: usage of spirits – "have drunk it", 2018 vs 2024
    • 30-39 year olds are core consumers of spirits, while niche spirits show potential among younger audiences
    • Graph 19: usage of spirits – "have drunk it", by age, 2024
    • Spirits usage is curbed among middle-income households
    • Graph 20: usage of spirits – "have drunk it", by monthly household income, 2024
    • Unlike the male-dominated UK and US markets, Chinese men and women have similar spirits usage
    • Graph 21: usage of spirits – "have drunk it", by gender, 2024
    • Men's interest in trying spirits has grown; brands targeting women need to stay relevant and visible
    • Graph 22: women's interest in trying* select spirits, 2018 vs 2024
    • Graph 23: men's interest in trying* select spirits, 2018 vs 2024
    • Usage occasions
    • At-home and bar drinking top the list of usage occasions
    • Graph 24: repertoire analysis of usage occasions, 2024
    • Graph 25: usage occasions, 2024
    • Focus on at-home drinking occasions in lower tier cities
    • Graph 26: usage occasions, by city tier, 2024
    • Younger consumers drink spirits for both fun and relaxation
    • Graph 27: usage occasions, by age group, 2024
    • Price preference
    • Whisky and brandy lead in perceived premium value, while tequila and liqueurs show high-end potential
    • Graph 28: price preference, 2024
    • Win over the younger generation with quality
    • Graph 29: price preference for whisky/bourbon – above RMB800, by age, 2024
    • Graph 30: price preference for tequila – above RMB500, by age, 2024
    • Win over the younger generation with quality
    • Consumers' price tolerance for spirits is increasing
    • Graph 31: price preference – above RMB500, 2018 vs 2024
    • Women's spending power is coming to the fore
    • Graph 32: price preference – above RMB500, by gender, 2024
    • Motivations for trying foreign spirits
    • Unique flavours encourage trial of new spirits
    • Graph 33: motivations for trying foreign spirits, 2024
    • Motivations for trying new spirits vary significantly among men of different age groups
    • Graph 34: motivations for trying foreign spirits, by gender and age, 2024
    • Co-brand with dairy products to increase market exposure
    • Graph 35: flavour blurring, by motivations for trying foreign spirits, 2024
    • Premium perceptions of marketing activities
    • Tastings lead the way in delivering premium experiences
    • Graph 36: premium perceptions of marketing activities, 2024
    • Tastings and co-branded offerings boost spending, while exhibitions may help to elevate brand image
    • Graph 37: premium perceptions of marketing activities, by monthly household income, 2024
    • Incorporating art helps attract younger consumers and enhance premium appeal
    • Graph 38: premium perceptions of marketing activities, by age, 2024
    • Southerners have stronger premium perceptions of marketing activities
    • Graph 39: premium perceptions of marketing activities – repertoire analysis, by region, 2024
    • Interest in novel spirits
    • Fruit-flavoured spirits attract the most interest
    • Graph 40: interest in novel spirits (net), 2024
    • Graph 41: interest in novel spirits, 2024
    • Men are more willing to try novel spirits
    • Graph 42: interest in novel spirits – "Have not drunk but interested in trying it", by gender, 2024
    • Niche whiskies appeal to female drinkers aged 30-39
    • Graph 43: interest in novel spirits – "Have drunk and will continue to drink it", by gender and age, 2024
    • Seize opportunities for brand extension among existing spirits consumers
    • Graph 44: interest in novel spirits – "Have not drunk but interested in trying it", by usage of spirits, 2024
    • Flavour blurring
    • Carbonated drinks are the most popular spirit-flavoured product
    • Graph 45: flavour blurring, 2024
    • Crossovers with daily consumer products cater to high-income consumers' diverse interests
    • Graph 46: flavour blurring, by monthly household income, 2024
    • High-end tea crossovers attract key spirits consumers
    • Spirit-flavoured ice cream makes its mark in foodservice
    • Clever crossovers can boost tequila's market exposure
    • Graph 47: flavour blurring, by usage of spirits ("Have not drunk but interested in trying it"), 2024
  5. Issues and insights

    • Dark spirits: balance premiumisation and cautious spending amid economic volatility
    • How traditional premium dark spirits can break through
    • Products: use smaller bottles to make premium spirits more accessible
    • Products: expand premium RTD offerings
    • Channels: develop ecommerce and social media platforms
    • Marketing: enhance premium perceptions through in-depth experiences
    • Marketing: emphasise brand story to reinforce a premium image
    • White spirits: ride the cocktail trend and partner with foodservice outlets
    • Cocktail culture boosts the development of white spirits
    • Grow brand presence in the foodservice sector
    • Co-create with businesses and consumers for a win-win
    • Craft a sense of occasion through special events to expand brand presence
  6. Appendix – methodology and abbreviations

    • Market size and forecast
    • Market segmentation
    • Methodology
    • Abbreviations

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