China Spirits Market

4488 words 18 pages
International Markets Bureau
MARKET INDICATOR REPORT | JUNE 2010

Consumer Trends Wine, Beer and Spirits in China

Consumer Trends Wine, Beer and Spirits in China

EXECUTIVE SUMMARY

INSIDE THIS ISSUE
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 (including
…show more content…
Off-trade sales occur through the following distribution channels: supermarkets, hypermarkets, small grocery retailers, convenience stores, independent small grocers, and food/drink/tobacco specialists.

 Specialty retailers are the main means of distribution for mid to high-end spirits and wine in China. These independently owned stores are able to offer a wide range of high-end brands and staff are generally knowledgeable about the products.

To compete with specialty stores, supermarkets are trying to offer a more exclusive experience with more high-end brands in designated stores and sections.

PAGE 3

RETAIL TRENDS (CONTINUED)
 The packaging of alcoholic beverages has grown in importance, as packaging helps to distinguish a product in an otherwise generic market. Coolerpacks made with Polyethylene Terephthalate (PET) bottles with twist off plastic bottle caps were recently introduced into the beer market. Although PET packaging is not common in the alcoholic beverages market, it has proven to have appeal due to its shatterproof nature and twist-off cap. Although it will not rival glass and tin, PET packaging will continue to increase its presence in the alcoholic beverages market by continuing to appeal to fashion-conscious young consumers.

Off-trade Sales of Alcoholic Drinks in China by Distribution Format Based on % Value
60

48.8 % 39.6% 38.7%

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