Rum, cognac, whiskies and champagne are the categories of western style products which have prolonged to be dominated by international players in the Chinese market. In 2016, with the alcoholic drinks, domestic companies have been observed to continue to account for the lion’s share in terms of total volume. No doubt that the consumers in China prefer to purchase higher quality products but in lesser volumes that has primarily led to a negative impact of total volume sales on alcoholic drinks in 2016.
To compact the competition from foreign imports, many marketing strategies have been introduced. The leading grape winery in China has well accelerated global acquisition of other wine firms in Europe named Yantai Changyu Pioneer Wine Co. With the growing share of high-ended products, esteemed beer companies are also optimizing their product mix, which in turn is going to capture ever changing demand for consumers.
According to the report, “Alcoholic Drinks in China”, in 2016, there has been a significant growth in demand for wine and spirits. Especially, rice wine, light grape wine and baijiu in the Chinese market have seen an increase in demand. There has been a growth of about 4% and 5% recorded in total volume terms. In comparison to the previous years, the growth in 2016 has been quite slower due to shift in drinking habits and enhancement in health consciousness. For business dinner ordering, and formal social occasions; people of China prefer premium products because of high grade quality and better taste. Normally Chinese people prefer drinking less and often with their families and friends, they even swap wine or baijiu for soft drinks.
From last three years, China has noticed a dynamic growth in market of alcoholic drinks, despite a decline in total volume terms in 2016 as registered by RTDs. Due to the saturation in terms of advertisement and lack of product innovation, consumer’s enthusiasm has been majorly hampered. Additionally, because of stiff competition among retailers and distributors, there has been a reduction in prices which further led to sharp fall in sales resulting in over stockings and decline in revenue with RTDs.
Anyhow, there are many consumers who are now purchasing alcoholic drinks online through their mobile devices which had led to massive growth in internet retailing in China. Also, manufacturers and retailers are giving more attention to e-commerce, to increase their sales. It also helps the retailers to estimate their cost selling directly to consumers. As a result, growth opportunities are well promised in the future years.
A stable demand for the alcoholic drinks for private consumption is predicted to occur in the future that will also support the performance of revived industry with the passage of time. The market is anticipated to register higher profits as the years pass majorly via the new online system of purchases. Undoubtedly, demand is not going to multiply at a fast pace but the overall market is foreseen to augment and emerge in the coming future through the support of technological innovations.
Key Factors Considered in the Report
China Alcoholic Beverages Market Research Report
China Alcoholic Beverages Market Demand
China Alcoholic Drinks Market Competitors
China Alcoholic Drinks Market Revenue
China Alcoholic Drinks Import Volume
China Alcoholic Drinks Export Volume
China Beer Market Trends
China Alcoholic Drinks Industry Future Outlook
China Spirits Industry Research Report
To know more about the research report:
Ankur Gupta, Head Marketing & Communications