Spirits - China | Statista Market Forecast

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$146.4bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$19.2bn in 2024.
Revenue, combined amounts to US$165.5bn in 2024.
The revenue, at home is expected to grow annually by 2.83% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated China (US$146bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$102.20 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 14.4bn L by 2024.
Volume, out-of-home is expected to amount to 883.5m L in 2024.
Volume, combined is expected to amount to 15.3bn L in 2024.
The Spirits market is expected to show a volume growth, at home of 1.0% in 2025.0.
The average volume per person, at home in the Spirits market is expected to amount to 10.05L in 2024.

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Whisky, such as Jack Daniel's Tenessee Whiskey
Vodka, such as Absolut Vodka
Rum, such as Bacardi Rum
Gin, such as Ginebra San Miguel
Brandy, such as Ararat Brandy

Wine, such as Red Wine
Beer, such as Budweiser
Non-Alcoholic Spirits, such as Tanqueray 0.0

The Spirits market in China has been experiencing significant growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances.

Customer preferences: Chinese consumers have shown a growing preference for premium and high-quality spirits, such as whiskey and cognac. This shift in preferences can be attributed to increasing disposable incomes, a desire for luxury goods, and a growing appreciation for Western culture. Additionally, younger consumers are increasingly interested in trying new and unique spirits, leading to a rise in demand for craft and artisanal products.

Trends in the market: One of the key trends in the Chinese spirits market is the increasing popularity of imported spirits. Chinese consumers are becoming more open to trying international brands and are willing to pay a premium for them. This trend is driven by a desire for authenticity, perceived higher quality, and the prestige associated with imported spirits. As a result, international spirits brands have been expanding their presence in the Chinese market and launching targeted marketing campaigns to capitalize on this trend. Another trend in the market is the growing demand for healthier and low-alcohol spirits options. Health-conscious consumers are seeking alternatives to traditional high-alcohol spirits and are increasingly opting for lower-alcohol options, such as low-alcohol cocktails and spirits with natural ingredients. This trend is in line with the global shift towards healthier lifestyles and reflects changing consumer attitudes towards alcohol consumption.

Local special circumstances: China has a unique drinking culture, with a strong emphasis on socializing and business networking. Spirits are often consumed during business meetings, banquets, and social gatherings, making them an integral part of Chinese social life. This cultural aspect contributes to the strong demand for spirits in the Chinese market and creates opportunities for both domestic and international spirits brands to cater to this specific consumer behavior.

Underlying macroeconomic factors: China's growing middle class and rising disposable incomes have played a significant role in driving the growth of the spirits market. As more Chinese consumers enter the middle class, they have more purchasing power to spend on discretionary items, including premium spirits. Additionally, the rapid urbanization and increasing urban population have led to lifestyle changes, with consumers seeking more sophisticated and premium products. Furthermore, the Chinese government's efforts to promote domestic consumption and reduce reliance on exports have also contributed to the growth of the spirits market. Policies such as tax cuts and incentives for domestic businesses have encouraged the development of local spirits brands and increased competition in the market. In conclusion, the Spirits market in China is experiencing growth due to changing consumer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for premium and imported spirits, as well as the trend towards healthier and low-alcohol options, presents opportunities for both domestic and international spirits brands to capitalize on the Chinese market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

The term “spirits” refers to an alcoholic beverage that has been distilled, contains no added sugar, and has at least 20 percent alcohol by volume. The term is derived from the medieval practice of alchemy and refers to the essential liquid element obtained from a substance through distillation, the “spirit” of the substance, so to speak. Popular spirits include whiskey, rum, vodka, tequila, and gin, among others.