China Spirits Market

4491 Words18 Pages
International Markets Bureau

Consumer Trends Wine, Beer and Spirits in China

Consumer Trends Wine, Beer and Spirits in China


Consumer Trends 3 4 4-5 6 7 8 9

Total sales of alcoholic beverages in China were US $105.0 billion in 2009, a growth of 8.1% from 2008. On-trade* sales of alcohol in 2009 were reported at US $ 51.6 billion, with beer accounting for 40% of sales, wine 28%, and spirits 32%. Off-trade sales of alcoholic beverages in China were slightly larger than on-trade sales and reached US $53.4 billion. Sales through off-trade channels were broken down as follows: beer accounted for 45%, wine 11%, spirits 43%, and other alcoholic beverages
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In terms of spirits, rare cognacs, whiskies and imported scotches are becoming trendy, as consumers follow the trend toward high-end products.

Although demand is growing for premium products, this has mainly been limited to large metropolitan areas. There is still demand for economy and domestic products throughout China, and growth for domestic products is still observed in the rural and interior areas of China.

Young consumers, particularly educated, middle-class men, are leading growth in the market and trends are appearing quickly as brands become increasingly important to this fashion-conscious demographic. The number of female drinkers is also increasing dramatically, as female Chinese drinkers were virtually non-existent in the past.

Contributing to growth in alcohol consumption is the increasing number of bars, restaurants and clubs in China.
Going out with friends and colleagues for entertainment has become a part of China’s urban culture, influenced by the West, and this practice is gradually spreading throughout the country.

Small grocery stores are the leading retailers of off-trade alcoholic beverages based on sales value. These stores are conveniently located close to residential neighbourhoods, which has been the main reason for their success. However, supermarket sales are increasing as they become more popular and as car ownership
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