Table of Contents
Executive Summary
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- The market
- Both value and volume are expected to gain momentum from recovery
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- Figure 1: Best-and Worst-case forecast of total Western spirits market value, China, 2013-23
- Figure 2: Best-and Worst-case forecast of total Western spirits market volume, China, 2013-23
- Brandy/cognac and whisky/bourbon secure leading positions
- Companies and brands
- Consolidating market under top players rebuilding confidence
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- Figure 3: Market share of leading Western spirits players, by value, China, 2016 and 2017
- Optimised portfolio by the top player fuels competition
- Reimagined sales channels and campaigns through technology
- Innovation based on local needs
- The consumer
- Western spirits intrigue consumers
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- Figure 4: Usage of Western spirits, September 2018
- Consumers are inclined to home-meals and Chinese-style places
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- Figure 5: Consumption occasions of spirits, September 2018
- New middle-class are ready for new drinking experience
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- Figure 6: Price preference, September 2018
- Inadequate knowledge leads to other endorsement
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- Figure 7: Purchase consideration, September 2018
- Sophisticated drinkers as endorsers
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- Figure 8: Knowledge about spirits – know that tequila is made from a type of plant, by gender and top five employment categories, September 2018
- Barrier derives from unfamiliarity and health concerns
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- Figure 9: Barriers of drinking, September 2018
- What we think
Issues and Insights
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- Shine under the right spotlight
- The facts
- The implications
- Convey the right information
- The facts
- The implications
- Alleviate growing health concern
- The facts
- The implications
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- Figure 10: Diageo’s CSR campaign
The Market – What You Need to Know
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- A recovering market
- Balance between positive and negative factors
- Brandy/cognac and whisky are dominating segmentation
Market Size and Forecast
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- Strong rebound continues in 2018
- Positive outlook for the following years
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- Figure 11: Best-and Worst-case forecast of total Western spirits market value, China, 2013-23
- Figure 12: Best-and Worst-case forecast of total Western spirits market volume, China, 2013-23
Market Factors
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- More exposure to foreign culture
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- Figure 13: Outbound tourism from China, 2013-18
- Figure 14: Chinese students study abroad and returning, 2013-17
- Consumers’ willingness to pay more for spirits
- Concerns about a healthy diet
Market Segmentation
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- Stable across all segments in value and volume
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- Figure 15: Total value segmentation of Western spirits, China, 2013-17
- Figure 16: Total volume segmentation of Western spirits, China, 2013-17
- Brandy/cognac shows resilience
Key Players – What You Need to Know
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- Market consolidation fuelled by top players
- Popular Western spirits companies see sales boost
- Technology-enriched campaigns flourished
Market Share
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- Pernod Ricard still leads the market with both volume and value growth
- Diageo lags behind front runners
- Rémy Cointreau
- LVMH keeps up with the race
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- Figure 17: Market share of leading Western spirits players, by volume, China, 2016 and 2017
- Figure 18: Market share of leading Western spirits players, by value, China, 2016 and 2017
Market Highlights
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- China: Pernod Ricard’s Absolut Vodka targets young consumers
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- Figure 19: Absolut Nights campaign 2017
- China: Rémy Cointreau’s Rémy Martin leverages technology
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- Figure 20: VR showcase at Chengdu la maison Rémy Martin
- China: Moët & Chandon woos consumers with mini size
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- Figure 21: Moët & Chandon mini’s debut across 80 countries
- China: Domestic companies introduce variety pack
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- Figure 22: Xiaozhi assorted wine giftbox
The Consumer – What You Need to Know
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- Curious consumers eager to dabble
- Local style places are favoured more
- Moderate knowledge differentiates purchasing preference
Usage of Western spirits
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- Curiosity towards the unfamiliar
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- Figure 23: Usage of Western spirits, September 2018
- Young consumers in their early 20s are more adventurous
- Females in 20s drinks more Western spirits
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- Figure 24: Usage of Western spirits – I have drunk it, by gender and age, September 2018
Consumption Occasion
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- Socialising with families or friends at home meal is the main occasion
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- Figure 25: Consumption occasions of spirits, September 2018
- Chinese-styled places are more popular than international-style places
- Different gender and age groups have preferred occasions
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- Figure 26: Consumption occasions of spirits, by gender and age, September 2018
- Gin drinkers indulge on specific occasions
Price Preference
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- Premium perception opens door for premium pricing
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- Figure 27: Price preference, September 2018
- Value for money can be another effective direction
Purchase Consideration
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- Appealing branding is the key to all consumers
- One fit for all does not work anymore
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- Figure 28: Purchase consideration, September 2018
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- Figure 29: Usage of Western spirits – I have drunk it, by age, September 2018
- Influencers and social media play a bigger role for gin
- Married consumers in tier one cities value more factors
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- Figure 30: Purchase consideration by city tiers and marriage status, September 2018
Knowledge about Spirits
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- Moderate knowledge about brandy/cognac
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- Figure 31: Knowledge about spirits, September 2018
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- Figure 32: Knowledge about spirits, September 2018
- Single-malt whisky brands can be relieved
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- Figure 33: Knowledge about spirits, September 2018
- Liqueur needs to broaden its audience
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- Figure 34: Knowledge about spirits, September 2018
- Male managers and female white collars are more knowledgeable
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- Figure 35: Knowledge about spirits – agree with tequila is made from a type of plant, by gender and top five employment categories, September 2018
Reasons for Not Drinking
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- Cluelessness leads to avoidance
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- Figure 36: Barriers of drinking, September 2018
Meet the Mintropolitans
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- Greater exposure to Western spirits
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- Figure 37: Usage of Western spirits, by consumer classification, China, September 2018
- Figure 38: Usage of Western spirits – I have drunk it, by consumer classification, China, September 2018
- More knowledgeable about niche spirits
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- Figure 39: Knowledge about spirits – agree with ‘VSOP in Hennessy VSOP and XO in Remy Martin Xo are only part of the brand name without special meaning’, by consumer classification, September 2018
- Figure 40: Knowledge about spirits – agree with ‘Tequila is made from a type of plant’, by consumer classification, September 2018
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- Figure 41: Knowledge about spirits, disagree with ‘Rum only has light colour (eg white)’, by consumer classification, September 2018
- Figure 42: Knowledge about spirits, agree with ‘Rum is made from sugar crane’, by consumer classification, September 2018
- Higher requirements to trigger purchase
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- Figure 43: Purchase consideration, by consumer classification, September 2018
Appendix – Market Size and Forecast
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- Figure 44: total market value of Western spirits, China, 2013-23
- Figure 45: total market volume of Western spirits, China, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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