What’s the future trend of China’s liquor market?
As the income of Chinese residents continues to increase, the mid-to-high-end consumer goods industry fully benefits from the rise in consumption power. Since 2012, after four years of pain and adjustment, the overall liquor industry is still facing pressure. Nevertheless, the revenue of major liquor brands has also grown year by year, and the trend of recovery got increasingly apparent.
In 2018, the Chinese liquor industry ushers in a new golden decade. Under the influence of consumption upgrading and diversification, the pattern of the liquor industry is exposed to restructuring and adjustment. The second China High-end Spirits Fair, with the theme of “Huging the New Golden Decade”, was launched in Jinan, triggering the first shot of the industry to the new decade. During this event, Ray Wang, Senior Director of Ipsos China, together with the guests, interpreted the consumption trends of the high-end spirits market and based on over ten years of experience and survey data, looked at from the in-depth the future of the high-end spirits market.
According to Mr. Wang, in the past six months, 79% of consumers expressed concern about the health problems caused by drinking liquor, and as a result, many consumers would choose to reduce the frequency of drinking and the amount each time they drank. Consumers believed that drinking low-alcohol liquor can satisfy both their drinking experience and health needs, but at the same time, they were suspicious of the quality of low-alcohol liquor. To this end, major liquor brands should work together to regulate the product parameters of low-alcohol liquor, and strengthen market communication eliminate such buying barriers.
Currently, the price of small packaged liquor products are about ¥20/100ml, and there is a shortage of medium-and-high-quality small packaged liquor. As consumers' health awareness rises and the decrease in the amount each time they drink, the preference for small packaged liquor will increase. With the upgrading of food and beverage channels, the expansion of consumption scenes of high-end catering, the demand for medium-and-high quality small-package liquor will also grow. In view of this, Mr. Wang pointed out that small packaged liquor should have product parameters similar to large packaged liquor, and independent marketing support was required for different brands and series.
With the rise of women’s consumption power, the era of female consumption has arrived. Even categories where male consumption constitutes the more mainstream are also trying their best to attract female users. Women are fond of low-to-medium-sized spirits. Though they drink less, their demand of high-quality liquor is stronger than men. From low-calorie beer to cocktails jointly released by cartoon IP, from cherry blossom liquor appealing in appearance and strong in strength to champagne the charm of which urban girls find hard to resist, different alcoholic drinks are trying to innovate from different directions and create more drinking scenes. Mr. Wang said that to grasp the heart of “her”, it must start from “color, smell and taste”, upgrade the drinking experience from the outside to the inside.
As the liquor industry picks up, the golden decade of China's liquor industry will definitely upgrade around products, marketing and consumer groups. All brands should keep up with the trends and seize opportunities. To make an appointment with expert to interpret the latest liquor market trends on site, please send an email to [email protected] to make an appointment.