New tastes create China market for alcoholic drinks

Subject

The market for alcoholic beverages in China.

Significance

Imported beer sales have grown rapidly in China, while sales of wine and spirits have begun to recover after a downturn. The markets for beer, wine and spirits have converged to target younger, middle-class consumers.

Impacts

• Sales of imported premium beer will outstrip mass-market beers, accounting for one-third of the market by 2020.
• Mid-priced imported wine and spirits will outperform luxury brands.
• E-commerce will be an increasingly important battleground for alcohol brands as younger, tech-savvy consumers become key drivers of growth.
• Domestic wine and baijiu brands are beginning to expand abroad, but face an uphill battle to 'educate' foreign consumers.
• Alcohol is increasingly consumed for taste and novelty, rather than to show wealth, creating opportunities for smaller, lesser-known brands.