Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast for on-trade alcoholic drinks in China, 2011-21
- Market drivers and barriers
- 20-29-year-olds a dynamic market
- Blurring line between alcoholic and non-alcoholic drinks
- Too reliant on “safe” choices
- Impact of online retailing
- Companies and brands
- New opportunities arising from coffeehouses and fast food chains
- Packaging design becoming more artistic and portable
- Taste and ingredients seen as quality detector
- Social media plus fans gathering
- The consumer
- New potential rising from coffeehouses, KTV and Western restaurants
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- Figure 2: Trends in consumer spending on alcoholic drinks in different on-trade channels, March 2016
- 20-39-year-old men drink more, around once a week
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- Figure 3: Purchasing frequency at on-trade channels, March 2016
- Alcoholic drinks categories demanding more transformational changes
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- Figure 4: Types of alcoholic drinks purchased at on-trade channels, March 2016
- Cider and Champagne show strong linkage with specific occasions
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- Figure 5: Drinking occasions at on-trade channels, March 2016
- Two big product themes emerging: Health and food pairing
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- Figure 6: Importance of product features in decision-making, March 2016
- Channel factors only having limited importance
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- Figure 7: Factors influencing choice of on-trade channels, March 2016
- What we think
Issues and Insights
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- Shifting from products to experiences
- The facts
- The implications
- Fruit-flavoured alcoholic drinks to fit a healthy lifestyle
- The facts
- The implications
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- Figure 8: Product examples of fruity alcoholic drinks
- Looking to max effects
- The facts
- The implications
- Marketing around occasions and emotions
- The facts
- The implications
The Market – What You Need to Know
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- Sales experiencing negative growth but will recover
- Relying on “safe” product options is a key barrier
- A big increase in beer imports
Market Size and Forecast
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- Introduction
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- Figure 9: Volume sales of on-trade alcoholic drinks, China, 2010-16
- Figure 10: Segment share of on-trade alcoholic drinks in China, by volume, 2010-16
- Figure 11: Best- and worst-case forecast for on-trade alcoholic drinks in China, 2011- 21
Market Drivers and Barriers
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- A dynamic market for 20-29-year-olds
- Blurring the line between alcoholic and non-alcoholic drinks
- Too reliant on “safe” choices
- Impact of online retailing
Market Segmentation
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- Beer going through significant changes
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- Figure 12: Volume of imported beer to China, 2011-15
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- Figure 13: On-trade beer sales in China, 2010-16
- Wine gaining popularity thanks to its image
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- Figure 14: On-trade wine sales in China, 2010-16
- Chinese spirits becoming more approachable and adapting to younger generation
- Authenticity scrutiny drives Western spirits sold in premium on-trade channels
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- Figure 15: On-trade spirits sales in China, 2010-16
Key Players – What You Need to Know
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- New opportunities arising from coffeehouses and fast food chains
- Artistic packaging design is on the rise
- Power of taste and ingredients
Competitive Strategies
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- A new opportunity rising from coffee plus alcohol
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- Figure 16: Product examples of Starbucks and Costa
- Expansion to traditionally non-alcoholic venues
- Enhancing experience and connectivity with consumers
Who’s Innovating?
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- Artistic packaging design is on the rise
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- Figure 17: Product examples of limited editions
- Figure 18: Product packaging example of Hello Kitty Edition
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- Figure 19: Product packaging examples of Jiang Xiao Bai
- Portable is the new innovation?
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- Figure 20: Product examples of on-the-go alcoholic drinks
- Power of taste and ingredients
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- Figure 21: Leaflet of Evil Twin Brewing’s imperial stout
- Figure 22: Product example of Panda Brew
- Deep dive into specific drinking occasions
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- Figure 23: Product example of Jiang Xiao Bai
- The next step for social media – Fans community
The Consumer – What You Need to Know
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- Product requiring changes in KTV and coffee shops
- Alcoholic drinks categories demanding more transformational changes
- Health and food pairing being paid more attention
- Channel factors only playing a limited role
Spending Trends by Channel
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- Chinese full-service restaurants and KTVs remain the key channels
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- Figure 24: Trends in consumer spending on alcoholic drinks in different on-trade channels, March 2016
- Coffee shops have potential to be a hot spot for alcoholic beverages
- KTV is 20-29-year-olds’ favourite drinking out place
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- Figure 25: 20-29-year-olds who have spent more on alcoholic drinks, by channel, March 2016
- Figure 26: Product example of Wrigley's 5 Cobalt
- Females order more alcohol in Western and Asian-style full-service restaurants
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- Figure 27: Spending more on alcoholic drinks at on-trade channels, by age and gender, March 2016
Purchasing Frequency
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- 20-39-year-old men are key consumers
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- Figure 28: Purchasing frequency at on-trade channels, March 2016
- Occasions preferences different between light and heavy drinkers
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- Figure 29: Comparison of purchasing frequency of light drinkers (once every 2-3 months or less) at on-trade channels against average, by occasion, March 2016
- Higher tier cities drink out more frequently
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- Figure 30: Comparison of drinking out frequency (percentage of once a week or more) against average, by city, March 2016
Preferences towards Various Types of Alcoholic Drinks
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- Beer failing to target middle-income drinkers
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- Figure 31: Types of alcoholic drinks purchased at on-trade channels, March 2016
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- Figure 32: Beer penetration at on-trade channels, by monthly personal income, March 2016
- Wine getting more appreciated by local businessmen
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- Figure 33: Wine penetration at on-trade channels, by monthly personal income, March 2016
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- Figure 34: Wine penetration at on-trade channels, by company type, March 2016
- Figure 35: Wine penetration at on-trade channels, by city, March 2016
- Chinese spirits lacking product innovation
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- Figure 36: Chinese spirits penetration at on-trade channels, by city, March 2016
- Figure 37: Product examples of ‘new’ sake
- RTD alcoholic drinks facing downturn
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- Figure 38: Ready-to-drink alcoholic drinks penetration at on-trade channels, by age and gender, March 2016
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- Figure 39: Ready-to-drink alcoholic drinks penetration at on-trade channels, 2015 and 2016
- Figure 40: Product examples of ‘mature’ RTD alcoholic drinks
Drinking Occasions
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- Alcoholic drinks mostly consumed in casual social occasions
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- Figure 41: Drinking occasions at on-trade channels, March 2016
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- Figure 42: Selected drinking occasions at on-trade channels, by age, March 2016
- Beer losing ground among consumers
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- Figure 43: Comparison of beer purchased at on-trade channels against average, by occasion, March 2016
- Cider getting more consumer attention across various occasions
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- Figure 44: Comparison of cider purchased at on-trade channels against average, by occasion, March 2016
- Western spirits becoming more popular than Chinese spirits for business occasions
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- Figure 45: Comparison of on-trade alcoholic drinks purchased for business occasions against average, by alcoholic drink, March 2016
- Champagne for festival occasions
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- Figure 46: Comparison of Champagne purchased at on-trade channels against average, by occasion, March 2016
Product Features
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- Consumers’ emphasis on health indicates new ways of marketing alcoholic drinks
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- Figure 47: Importance of product features in decision-making, March 2016
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- Figure 48: Product examples of ‘natural’ alcoholic drinks, March 2016
- Figure 49: Percentage of respondents who think “Good for health” is an important or very important product feature when deciding which alcoholic drinks to buy at on-trade channels, by city, March 2016
- Food pairing suggestions becoming more important
- Females desire greater flavour variety
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- Figure 50: Percentage of respondents who choose 'Innovative flavours (eg fruit-infused wine)' and 'Exotic flavours (eg sakura-flavoured beer from Japan)' as an important feature when deciding which alcoholic drinks to buy at on-trade channels, by gender, March 2016
- Figure 51: Percentage of respondents who choose 'Designed for specific groups (eg beer with light flavour for women)' as an important feature when deciding which alcoholic drinks to buy at on-trade channels, by gender and age, March 2016
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- Figure 52: Product examples of ‘female’ targeted alcoholic drinks, March 2016
- South of China like locally made
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- Figure 53: Percentage of respondents who choose ‘Locally produced products' as an important feature when deciding which alcoholic drinks to buy at on-trade channels, by city, March 2016
Channel Choice Factors
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- Insignificant channel preferences
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- Figure 54: Factors influencing choice of on-trade channels, March 2016
- Niche brands need to do more
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- Figure 55: Menu display about story-telling marketing
- 30-39-year-old males feel the strongest need to impress
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- Figure 56: Percentage of respondents who choose ‘Premium alcoholic drinks’ as an important factor when deciding on-trade channels, by gender and age, March 2016
Meet the Mintropolitans
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- Figure 57: Consumption frequency of on-trade alcoholic drinks, by consumer classification, March 2016
- Figure 58: Percentage of consumers who spend more on on-trade alcoholic drinks at on-trade channels, by consumer classification, March 2016
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- Figure 59: Occasions of purchasing alcoholic drinks on-trade, by consumer classification, March 2016
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- Figure 60: On-trade consumption of different types of alcoholic drinks, by consumer classification, March 2016
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- Figure 61: Importance of product features in decision-making, by consumer classification, March 2016
- Figure 62: Selected factors influencing choice of on-trade channels, by consumer classification, March 2016
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Appendix – Market Size and Forecast
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- Figure 63: Best- and worst-case forecast for beer in China, 2011-21
- Figure 64: Best- and worst-case forecast for wine in China, 2011-21
- Figure 65: Best- and worst-case forecast for spirits in China, 2011-21
- Figure 66: Volume forecast of on-trade alcoholic drinks, by segment, 2011-21
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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