Foreign Liquor Brands to Introduce China to New Tipples at CIIE
Luan Li
DATE:  Oct 10 2023
/ SOURCE:  Yicai
Foreign Liquor Brands to Introduce China to New Tipples at CIIE Foreign Liquor Brands to Introduce China to New Tipples at CIIE

(Yicai) Oct. 10 -- Foreign liquor makers will bring a number of new products to the China International Import Expo next month, with young adults especially in mind, as they bid to build on gains made over the course of the Covid-19 pandemic when consumers drank more alcohol at home.

Confident about the outlook for demand in the country, overseas alcohol brands plan to take up a lot of space debuting new products at the five-day CIIE, which will open in Shanghai on Nov. 5, Yicai learned.

Older Chinese tend to prefer baijiu, the nation’s traditional fiery liquor, so it has taken more than a decade for foreign brands to increase their combined market share to 2 percent from 1 percent. But a new generation of drinkers have been helping to reshape the country’s liquor market over the past five years.

Mainstream whisky and brandy products have become a top pick among younger drinkers, who grew up during China’s fastest period of economic growth, as these drinks represent a different kind of lifestyle, according to market insiders. The pandemic and lockdowns also fueled change as more people got into the habit of enjoying these drinks at home or during small family gatherings, they said.

Chinese consumers are very curious about new trends, Jerome Cottin-Bizonne, managing director of Pernod Ricard China, told Yicai. New liquor varieties such as single malt whisky and gin are in high demand, he said, adding that the owner of the Absolute Vodka and Jameson brands needs to communicate with consumers more to seize the opportunity. 

Whisky, single malt in particular, is one of the fastest-growing imported liquor categories in China, according to Jeremy Speirs, regional managing director of Edrington Global Travel Retail. Young adults are especially interested in drinking imported beverages over dinner or in other settings, Speirs added. Demand for high-end whisky is still increasing, he said.

In the past three to four years, various external factors impacted the Chinese liquor market but Macallan sales kept rising and management is fully confident about future growth, Speirs added. Glasgow-based Edrington Group owns the Macallan and Highland Park whisky brands.

Double-digit import growth lends credence to a positive outlook. Liquor imports rose 11 percent to 58.7 million liters in the first half from a year ago, according to data from the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce & Animal By-Products. By value, they jumped 34 percent to USD1.2 billion.

More specifically, inward shipments of brandy climbed by almost 16 percent with a 31 percent surge in value. Whisky import growth slowed to 8 percent by volume and 18 percent by value.

Hard liquor is not the first option for most Chinese consumers. Over the past year, beer was the No. 1 choice of alcoholic beverage for 40 percent of consumers, according to a recent report published by consultancy RIES China. Wine was second with a 20 percent share, followed by fruit wines at 16 percent. Baijiu and whisky accounted for 9 percent each.

Editors: Tang Shihua, Emmi Laine

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Keywords:   Supply and Demand,Whisky,Brandy,Spirits Market,Changing Market Landscape,Emerging Consumer Groups,X Generation,Market Analysis,China