Fermented distilled beverages are known as spirits.
These are manufactured by distillation of grains, fruit, or vegetables that are
already alcoholic fermented. All variants of spirits are manufactured using
distillation, vaporization and condensation processes. Sprits contain a minimum
of twenty percent alcohol content coupled with various
fermented products. Spirits with strong aroma are widely consumed in China and
are always a staple beverage at business dinners, weddings, and events. Western
spirits struggle to enter the Chinese market because domestic drinks such
as Baijiu and cocktails witnessed a tremendous growth. Baijiu is China’s
traditional spirit and best sold spirit around the world accounting for a
maximum share within China’s sprits industry. This trend has almost doubled the
market for spirits in China. Maotai is the best-selling baijiu brand in China
due to its aroma. However, other popular categories are sweeter, fruitier and
strong aroma baijiu.
According to the study “Country
Profile: Spirits in China”, the leading players in China’s spirit
market are Beijing Red Star Co Ltd, Niu Lan Shan Distillery, Jiangsu Yanghe Group
Co. Ltd., Sichuan Yibin Wuliangye Distillery Co Ltd, Shanxi XinghuaCun Fen Jiu
Group Co. Ltd, Sichuan Mianzhu Jian Nan Chun distillery, Nanyang Company and
Luzhou Lao Jiao Co Ltd. The major distributors within the China’s spirits
industry are hypermarkets, supermarkets, department stores, convenience stores,
food & drinks specialists, dollar stores, vending machines, e-retailers,
on-trade and other general retailers. All the spirits manufactured in China use
glass, rigid plastics, rigid metal and others packaging materials which are
dispensed in the form of bottles and cans. It was observed that there is a huge
demand for brandy, gin & genever, liqueurs, rum, specialty spirits, tequila
& mezcal, vodka, and whiskey in China.
China possesses an affinity for drinking extremely
strong liquor which is bolstering the spirits market. The country possesses
thousands of distilleries manufacturing many variants that are extensively in
demand. With increasing consumption, the distilleries are close to running out
of spirits, according to the latest research. China is also the world’s largest
e-commerce market for spirits, according to the latest research report. Chinese
online alcoholic beverage market is concentrated, with the leading two players,
Tmall and JD,com. These leading players account for over 70% of the market and
with around 772 million internet users.
China is the single largest beverage-alcohol market
in the world. The major factors affecting the country’s spirit market are newer
urbanisation trends where consumers are exposed to branded products and
international-style spirits. This trend would increase sales and revenue
bolstering the industry. The increasing brands coupled with quality within the
Chinese spirits market will drive the industry over the next few years.
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