22 Sep 2017 --- The rise of a drinking culture at Chinese social gatherings, along with increased disposable income among younger consumers, is set to drive the Chinese spirits market through a CAGR of 15 percent over 2016-21, according to GlobalData. The company's latest report, suggests that the market is expected to reach over US$450 billion by 2021 from US$205 billion in 2016.
In 2016, the Chinese spirits market held 32.8 percent of the global volume share and 52.3 percent of the Asia-Pacific regional volume share – and it is projected to reach 46.9 percent and 66.2 percent respectively by 2021. The volume of spirits consumption is expected to rise from 8.4 billion liters in 2016 to 16.9 billion liters in 2021, growing at a CAGR of 15 percent.
China’s younger consumer base that drinks on social occasions and the country’s increasing number of female drinkers will play a key role in the years to come for the Chinese spirits market. Per capita, spirits consumption in the country was pegged at 7.3 liters in 2016, nearly a full liter over the global average of 6.4 liters and 6.2 liters in the Asia-Pacific region. China’s per capita spirits consumption is set to rise to 14.4 liters by 2021, according to the report.
GlobalData analyst Ryan Whittaker says: “The country’s GDP has grown at a rate of around 7-8 percent in the last few years, which has increased disposable income, especially in more cosmopolitan urban areas. With more dispensable income, these Chinese consumers love to spend on social occasions, especially on drink.”
Specialty Spirits are Chinese drinkers’ favorite category compared to other sprit types; it accounted for 94.2 percent and 98.2 percent in terms of value and volume respectively in 2016. This large size is caused by a large amount of locally produced and China-specific spirits.
The category, worth US$193.3 billion in 2016, is set to grow further at 15.1 percent per year, dominating the overall spirits market to 2021. Brandy was second in the market with a 3.9 percent value share and a 0.9 percent volume share, followed by Whiskey, Vodka, Gin and Genever, Tequila and Mezcal, Liqueurs and Rum. Of these trailing categories, Tequila and Mezcal demonstrate the most notable signs of potential growth ahead, according to the report.
Whittaker adds: “While the Tequila and Mezcal category is at the bottom in terms of value and volume, it will witness the fastest growth, rising at 21.6 percent over 2016-2021.”
In 2016, every six in ten spirits consumers were made in China. Consumption was high among consumers with tertiary education, who accounted for 75.6 percent of the total, followed by 17.3 percent consumers with post-secondary education. In terms of geography, spirits consumption is mostly concentrated in urban China with a significant share of 97.5 percent.
Whittaker concludes: “Rural China’s consumption is almost negligible in all categories except specialty spirits. As the consumers were mostly from urban areas, hypermarkets and supermarkets emerged as the leading channel for spirits distribution in 2016, with a 54.4 percent share of volumes.”
22 Jun 2018 –
New surveys of more than 5,000 consumers in five ...
22 Jun 2018 –
Unilever is calling on content creators and ...
21 Jun 2018 –
The EU is hitting back at US steel and aluminum ...
18 Jun 2018 –
Most dairy commodity prices have been rallying ...
18 Jun 2018 –
Italian company Faravelli has grown from a small ...