Alcoholic Drinks - China

China, with its rich history and diverse culture, has a thriving Alcoholic Drinks market that is experiencing significant growth.

Customer preferences: Chinese consumers have a strong preference for traditional alcoholic beverages, such as Baijiu, which is a strong distilled spirit. Baijiu holds a significant market share in the country, and its popularity is driven by cultural traditions and social customs. Additionally, wine consumption is also on the rise, particularly among the younger generation who are more open to trying new and imported alcoholic drinks.

Trends in the market: One of the key trends in the Alcoholic Drinks market in China is the increasing demand for premium and imported products. As the Chinese middle class continues to grow, consumers are willing to spend more on higher quality alcoholic beverages. This trend is particularly evident in the wine segment, where imported wines are becoming increasingly popular. The rise of e-commerce platforms has also contributed to the growth of the market, making it easier for consumers to access a wide range of alcoholic drinks from around the world.

Local special circumstances: China has a unique drinking culture that plays a significant role in shaping the Alcoholic Drinks market. Drinking is often seen as a way to build relationships and establish business connections, making it an integral part of social gatherings and business meetings. This cultural aspect has a direct impact on the types of alcoholic beverages consumed in the country, with Baijiu being the preferred choice for many Chinese consumers. Additionally, the Chinese government has implemented various regulations and policies to control alcohol consumption, such as restrictions on advertising and marketing of alcoholic beverages.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in China is supported by several macroeconomic factors. Firstly, the country's economic development has led to an increase in disposable income, allowing consumers to spend more on luxury goods, including premium alcoholic beverages. Secondly, urbanization and changing lifestyles have contributed to the growth of the market, as more people are moving to cities and seeking new experiences. Finally, the influence of Western culture and globalization has also played a role in shaping consumer preferences, with a growing interest in imported alcoholic drinks. In conclusion, the Alcoholic Drinks market in China is experiencing significant growth driven by changing consumer preferences, increasing demand for premium and imported products, unique local drinking culture, and underlying macroeconomic factors. As the market continues to evolve, it presents opportunities for both domestic and international players to tap into the growing demand and cater to the diverse preferences of Chinese consumers.

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.