China’s spirits sales to surpass US$450bn by 2021By Annie Hayes
Spirits sales in China are forecast to more than double in the next five years, with speciality spirits such as baijiu and soju continuing to dominate the market, according to business analytics firm GlobalData.
The market is expected to grow at the CAGR of 15% between 2016 and 2021, increasing from US$205 billion to more than US$450bn in the period.
In 2016, spirits demand in China was equivalent to 32.8% of global volumes and 52.3% of Asia-Pacific regional volumes – these figures are projected to reach 46.9% and 66.2% respectively by 2021.
Annual spirits consumption volumes are expected to rise from 8.4bn litres – equivalent to 7.3 litres per head – to 16.9bn litres, or 14.4 litres per head.
Specialty spirits accounted for 94.2% and 98.2% in terms of value and volume respectively in 2016. The category, worth more US$193.3bn in 2016, is set to grow by 15.1% per year, the analyst predicts.
Brandy came in second with a 3.9% value share and a 0.9% volume share, followed by whisky, vodka, gin and genever, Tequila and mezcal, liqueurs and rum.
Agave spirits demonstrate the highest potential for growth, according to the report, and is set to rise by 21.6% between 2016 and 2021.
The analyst cited a growing social drinking culture, high disposable income among young consumers, and the increasing number of female drinkers as a key driver of the increase in consumption.
GlobalData analyst, Ryan Whittaker, said: “The country’s GDP has grown at a rate of around 7–8% in the last few years, which has increased disposable income, especially in more cosmopolitan urban areas.
“With more dispensable income, these Chinese consumers love to spend on social occasions, especially on drink.”