Market Research Reports - Ken Research China Alcoholic Drinks Industry Future Outlook

China Witnessing Dynamic Growth in Alcoholic Beverages Sector: ken Research
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.