Craft Spirits
Consumer insights – the changing face of the Chinese drinks market
The Chinese Alcohol Consumption Survey of 2024 from China Trading Desk offers a glimpse into the dynamic world of spirits and wine purchasing in a key market.
“2024 marks a pivotal moment in the evolution of China’s alcohol consumption – characterised not only by diverse preferences but also by the distinct personalities of its consumers.”
So says China Trading Desk (CTD) – an arm of specialist marketeer China Marketing Company – in The Chinese Alcohol Consumption Survey of 2024, released recently.
The survey took responses from 2,000 Chinese consumers on their drinking habits and buying preferences. Of the participants 65.7% were aged between 18-34 years and urban, with 71% living in Tier 1 and Tier 2 cities. The gender balance was weighted 56% towards women. Some 80% reported monthly income of lower than RMB10,000 (US$1,400).
The reported noted that China’s alcohol market is valued at over US$340 billion a year, with beer and wine the most popular alcoholic beverages among Chinese consumers.
But it also pointed to growing interest in and appreciation of whisky, vodka and Cognac/brandy.
The report also presented detailed consumer personas that reflect the makeup of the market. These are broken into three key segments – Urban Adventurers, Sophisticated Sippers and Refined Aficionados – which highlight Chinese consumers category preferences and buying patterns.
The report noted several key dynamics in how Chinese shop and consume the category.
“The survey highlights a shift towards moderation, with 60% of respondents preferring to drink alcohol occasionally and in social settings,” said CTD. “Supermarkets and online platforms dominate the retail space, capturing 76% of alcohol purchases, indicative of the modern consumer’s preference for convenience and accessibility.”
Social media is key to brand messaging and communication.
CTD stated: “27.7% of respondents use Douyin and 26.2% rely on Xiaohongshu for alcohol-related research, highlighting the importance of these platforms in the decision-making process. WeChat is used by 22.5% of the surveyed population, demonstrating its multifunctionality and pivotal role in integrating social media with ecommerce and content distribution.
“The survey indicates that 20.3% of respondents frequently research alcohol, suggesting a highly informed and digitally engaged consumer base. These insights underline the critical need for alcohol brands to maintain a robust online presence and leverage user-generated content to enhance credibility and engage potential customers.”
CTD added: “The survey shows that promotions and discounts influence 35.5% of purchasing decisions, suggesting that special offers and limited-time promotions could be effectively communicated through these digital channels to spur consumer action and brand switching.”
The report also homes in on how Chinese shoppers purchase while travelling.
The survey reveals that 43.6% of overseas travellers purchase alcohol in duty-free shops, with a preference for premium and exclusive products.
CTD noted: “This behaviour underscores the opportunity for brands to capture this lucrative market segment through targeted promotions and exclusive travel retail offerings. Moreover, international destinations like Singapore, Japan and European countries, frequented by 18.4%, 14.5%, and 18.1% of travellers respectively, present unique opportunities for collaborations with local distributors and travel retail outlets to offer location-specific exclusives that appeal to the discerning traveller.
“The inclination to buy more premium brands when traveling, noted by 9.5% of the respondents, suggests that travel can be an occasion for indulgence and experimentation, encouraging brands to position their premium offerings prominently in travel retail environments to attract this aspirational spending.”
*For more on the Chinese Alcohol Consumption Survey, click on this link.
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