Table of Contents
Executive Summary
-
- Impact of COVID-19 on Western spirits market
-
- Figure 1: Short, medium and long-term impact of COVID-19 on Western spirits market, December 2020
- The market
- Optimistic potential for value growth after the epidemic
-
- Figure 2: Forecast of total imported Western spirits market value, China, 2020-25
- Both retail and on-trade volume consumption will recover in 2021 and maintain growth
-
- Figure 3: Retail sales volume and forecast of imported Western spirits, China, 2015-25
- Figure 4: Non-retail sales volume and forecast of imported Western spirits, China, 2015-25
- Brandy/cognac was heavily hit by pandemic while liqueur continues to grow
-
- Figure 5: Total value segmentation of imported Western spirits, China, 2019-20 (est)
- Figure 6: Total volume segmentation of imported Western spirits, China, 2019-20 (est)
- Companies and brands
- Top four players lead the market
-
- Figure 7: Market share of leading Western spirits players, by imported volume, China, 2018, 2019 and 2020 (est)
- Figure 8: Market share of leading Western spirits players, by imported value, China, 2018, 2019 and 2020 (est)
- Investing more in e-commerce and local production
- Innovation to attract younger consumers
- The consumer
- Brandy and whisky continue to lead
-
- Figure 9: Usage of Western spirits, September 2020
- Buying spirits offline remains a habit with online channel presenting future opportunities
-
- Figure 10: Purchase channel of spirits, September 2020
- Pairing with food is a long-established drinking custom
-
- Figure 11: Consumption occasion, September 2020
- Fashionable perception is the key association to encourage consumption of Western spirits
-
- Figure 12: Perceptions of different spirits, September 2020
- Flavour and texture are the main selling points for RTD drinks
-
- Figure 13: Interest in RTD blurring, September 2020
- Brand heritage is important and interest in healthier variants is strong
-
- Figure 14: Western spirits consumption habits, September 2020
- What we think
Issues and Insights
-
- Pairing Western spirits with Chinese meals
- The facts
- The implications
-
- Figure 15: Chinese restaurants paring traditional food with whisky
- Create memorable events and sense of ritual to interest female consumers
- The facts
- The implications
-
- Figure 16: Martell x playhouse fashion party, China, 2020
- Figure 17: Hennessy tasting party, China, 2020
-
- Figure 18: Noveltea for gatherings
- Create a feeling of relaxation and indulgence for one
- The facts
- The implications
-
- Figure 19: Hennessey glass set
The Market – What You Need to Know
-
- Market continues to grow after the outbreak
- Younger generation entering the market brings new opportunities
- Brandy and whisky maintained their prestige status while liqueur grows
Market Size and Forecast
-
- Optimistic recovery after the pandemic
-
- Figure 20: Forecast of total imported Western spirits market value, China, 2020-25
- Volume will grow with consumers’ rising interest
-
- Figure 21: Retail sales volume and forecast of imported Western spirits, China, 2015-25
- Figure 22: Non-retail sales volume and forecast of imported Western spirits, China, 2015-25
Market Factors
-
- Young generations are more adapted to a trendy lifestyle
- Cocktail deliveries enabled on-trade stock to sell
-
- Figure 23: Cocktail delivery, China,2020
- Mixing cocktails at home becoming a hot topic especially for young
-
- Figure 24: Popular cocktail choices for young people
- COVID-19 has limited the consumption of out-of-home drinking
Market Segmentation
-
- Brandy/cognac was most heavily hit by pandemic
-
- Figure 25: Total value segmentation of imported Western spirits, China, 2019-20 (est)
- Figure 26: Total volume segmentation of imported Western spirits, China, 2019-20 (est)
Key Players – What You Need to Know
-
- Market share maintained by top four players
- Focus on recruiting younger consumers
- Novelty flavours enjoy more market attention
Market Share
-
- Leading brands maintained their performance despite pandemic pressure
-
- Figure 27: Market share of leading Western spirits players, by imported volume, China, 2018, 2019 and 2020 (est)
- Figure 28: Market share of leading Western spirits players, by imported value, China, 2018, 2019 and 2020 (est)
- Pernod Ricard shifting focus to retail sales
- Diageo developing premium segments across the region
Competitive Strategies
-
- International brands investing in domestic production
- Pocket-sized bottles to attract post-90s consumers
-
- Figure 29: Pocket whiskey
- Sponsoring trendy TV shows to engage with younger generation
-
- Figure 30: Chivas x Fourtry poster
- Fruity flavoured liqueur becoming popular in bar and clubs
-
- Figure 31: Tina and Devil Rabbit liqueurs
Who’s Innovating?
-
- Celebrities launching private label spirits
-
- Figure 32: Ocus Gin, Belgium, 2020
- Figure 33: Tesla Tequila, US,2020
- Launching whisky sets in smaller sizes
-
- Figure 34: Kavalan Whisky, Taiwan, 2020
- Figure 35: Passton mini whisky, China, 2020
- Collaborations with fashion brands
-
- Figure 36: Absolut Vodka x Sacai, China, 2020
- Restricted on-premise drinking creates opportunity for RTD cocktails
- Mixing tea with spirits for lower ABV
-
- Figure 37: Noveltea, China, 2020
The Consumer – What You Need to Know
-
- High interest maintained for all Western spirits
- Drinking while dining is the most popular consumption occasion
- Leverage the fashionable perception of Western spirits
Usage of Western Spirits
-
- Brandy and whisky lead consumption
-
- Figure 38: Usage of Western spirits, September 2020
- Increased interest in cocktail-based spirits
-
- Figure 39: Usage of Western spirits – “Have not drunk but have an interest in trying” 2018 vs 2020
- Young consumers are more interested in trying Western spirits
-
- Figure 40: Usage of Western spirits – “Have not drunk but have an interest in trying”, by age, September 2020
Purchase Channel
-
- Offline channels are the main shopping destination for alcohol
-
- Figure 41: Purchase channel of spirits, September 2020
- Younger consumers in their 20s are more likely to drink spontaneously
-
- Figure 42: Purchase channel of spirits, by age, September 2020
Consumption Occasion
-
- Increased at-home consumption scenarios
-
- Figure 43: Consumption occasion, September 2020
- Western-style dining occasions interest female consumers
-
- Figure 44: Consumption occasion, by gender, September 2020
- Target affluent consumers who enjoy solo moments
-
- Figure 45: Consumption occasion, by personal income, September 2020
Perception of Spirits
-
- Fashionable is the main association with Western spirits
-
- Figure 46: Perceptions of different spirits, September 2020
- Limited availability of gin cause barriers for female consumers
-
- Figure 47: Perceptions of different spirits - gin, September 2020
- Whereas for rum, price is a concern
-
- Figure 48: Perceptions of different spirits - rum, September 2020
- Liqueur benefits from convenient accessibility
-
- Figure 49: Perceptions of different spirits - Liqueur, September 2020
Interest in Blurring
-
- Flavours and texture are key to innovate
-
- Figure 50: Interest in RTD blurring, September 2020
- Female consumers have lower brand loyalty
-
- Figure 51: Rio RTD drinks
Behaviours Related to Western Spirits
-
- Brands and health play an important role when choosing drinks
-
- Figure 52: Behaviours related to Western spirits, September 2020
- Consumers who are open towards trying new spirits are more likely to drink at home
- Educational sources interest different demographics
Appendix – Market Size and Forecast
-
-
- Figure 53: Retail volume sales and forecast of Western spirits, China, 2015-25
- Figure 54: On-trade volume sales and forecast of Western spirits, China, 2015-25
- Figure 55: Total value sales and forecast of Western spirits, China, 2015-25
-
Appendix – Methodology and Abbreviations
-
- Methodology
- Abbreviations
Back to top