- Title: Young women drive increasing whiskey sales in China
- Date: 17th April 2024
- Summary: SHANGHAI, CHINA (RECENT - FEBRUARY 29, 2024) (REUTERS) (SOUNDBITE) (English) MANAGING DIRECTOR FOR MARKET RESEARCH COMPANY KANTAR WORLDPANEL, JASON YU, SAYING: “Well according to the government data, China’s alcoholic drink market accounts for almost a trillion RMB ($138 billion) and that is obviously a very big market. And out of that, actually whiskey accounts for a very tiny share. It's actually about zero point, less than 0.5% was accounted by whiskey. But the category has been growing double digits over the last couple of years, and especially since 2016. And even in 2022, according to some of the government import data, actually, whiskey sales, imported whiskey sales actually grew by 20%. So overall speaking, the category has been enjoying a very strong growth in the past years.” SHANGHAI, CHINA (RECENT - MARCH 12, 2024) (REUTERS) VARIOUS OF EXTERIORS OF STORE SELLING CHINESE LIQUOR MOUTAI VARIOUS OF BOTTLES OF MOUTAI ON DISPLAY SHANGHAI, CHINA (RECENT - FEBRUARY 29, 2024) (REUTERS) (SOUNDBITE) (English) MANAGING DIRECTOR FOR MARKET RESEARCH COMPANY KANTAR WORLDPANEL, JASON YU, SAYING: “The young consumers see baijiu (Chinese liquor) as a bit old fashioned and old, et cetera. but I would say that, you know, if it's really premium baijiu, then they will also go for it. So it's quite difficult to stereotype, you know, a type of consumers versus the type of drink. But I do believe that the Western spirits, especially whiskey, will have a great opportunity to thrive in China if they are able to actually cater more to consumers’ needs of having fun and seeking pleasure, which is more important than, you know, mianzi (“face culture”) for instance, you know, actually turning a face for the business occasions. So in that sense, I believe that those foreign spirits will have a great opportunity to grow in China.” SHANGHAI, CHINA (RECENT - MARCH 12, 2024) (REUTERS) VARIOUS OF TOURISTS AT SHANGHAI BUND VARIOUS OF SHANGHAI SKYLINE
- Embargoed: 1st May 2024 02:00
- Keywords: alcohol baijiu bar china consumers drink drinking whiskey whisky women
- Location: SHANGHAI, EMEISHAN, SICHUAN PROVINCE, CHINA
- City: SHANGHAI, EMEISHAN, SICHUAN PROVINCE, CHINA
- Country: China
- Topics: Asia / Pacific,Commodities Markets,Economic Events
- Reuters ID: LVA003384009042024RP1
- Aspect Ratio: 16:9
- Story Text: In Shanghai’s bustling nightlife, bars are serving whiskey tasters and cocktails to an unexpected customer base: young women.
Contrary to the stereotype of whiskey being consumed by the older generation, young Chinese women are increasingly becoming the driving force behind whiskey sales in the world’s largest alcohol market.
"I think whiskey is very fashionable," said one customer, 45-year-old Belinda as she sipped on the liquor in Black Rock bar, a popular joint serving whiskey-based drinks, adding that Shanghai has a "good atmosphere" for drinking.
Another regular, Echo Zhang, said she enjoys socialising over whiskey. "Whiskey's overall culture, whether it's Black Rock or other well-known Shanghai whiskey bars, every time I go there with my friends to chat, it's a very suitable place to sit down and spend an evening."
Black Rock bar manager Colin Tait said he was surprised by the demographic shift. He credits the change in clientele to marketing strategies that appeal to a younger crowd.
"The whiskey market realises they have to shift away from the 'old man culture' to get into the new market," Tait added. "It's more about 'it's whiskey, you can drink it any way you want to drink it.' There's like colourful campaigns, there's more push on the bartenders to do stuff with it."
The potential of China’s burgeoning whiskey scene has not gone unnoticed. French spirits maker Pernod Ricard launched The Chuan pure malt whisky in China last December, and is not the only global spirits player upping its whiskey production in China. The company's main rival, Diageo, also opened a $75 million single malt distillery in the country, under construction since 2021.
Market research provider Euromonitor International predicts whiskey - which includes Scotch whisky - will be the fastest-growing spirit in China in the coming years, booming by 88% between 2023-2026. That represents more than 20% annual growth for the next few years, compared to an approximate 4% growth-rate worldwide.
Whiskey's total value in the world's biggest alcohol market reached $2.3 billion in 2022, according Euromonitor International, with estimates it will grow to $6.7 billion by 2027.
According to Jason Yu, managing director for market research company Kantar Worldpanel, despite whiskey's small market share in China's alcohol market — which accounts for a trillion RMB ($138 billion) domestically — the category is experiencing strong growth and has potential to capitalise on changing consumption patterns.
"Western spirits, especially whiskey, will have a great opportunity to thrive in China if they are able to actually cater more to consumers’ needs of having fun and seeking pleasure," Yu said.
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