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On-trade Alcoholic Drinks - China - June 2015

Published By :

Mintel

Published Date : Jun 2015

Category :

Alcoholic Beverages

No. of Pages : N/A

The market as a whole is showing signs of recovering, albeit in a volatile way. Levels of wine imports are recovering from the huge dip in 2013, baijiu brands are reporting rather positive figures in their first quarter reports in 2015, and beer, despite the disappointing 2014, is looking to a mild recovery.
Table of Content

Introduction

Methodology
Limitation
Definitions
Abbreviations

Executive Summary

The market
Figure 1: Fan chart of on-trade alcoholic drinks in China in volume, 2010-20
Market drivers
Teetotalism – A growing trend among young urban consumers
The fast-changing macro-economic environment
The two tiered consumer structure
The end of stocking adjustment
Innovations in the market
Innovative and less conspicuous packaging shows potential
Figure 2: New launches in global alcoholic drink market, 2010-14
Shareability is crucial in on-trade channels
Flavour innovations – What’s next?
Figure 3: Global new product launched with flavour as one of the key claims in Western spirits category, by flavour group, 2010-14
What could baijiu learn from sake, its counterpart in Japan?
The consumer
Drinking frequency and spending per visit are increasing
Figure 4: Change in alcoholic drink behaviour, March 2015
Figure 5: Alcoholic consumption change 2014-15
On-trade channels enjoy higher overall penetration
Figure 6: Penetration of alcoholic drinks in at-home and out-of-home occasions, March 2015
Wine and Western spirits are winning in the premium arena
Figure 7: Correspondence map for alcoholic drink market, March 2015
Beer dominate casual social occasions
Figure 8: Drinking occasions, by types of alcoholic beverages, March 2015
Chinese restaurants remain the key channel
Figure 9: Drinking locations of alcoholic beverages, March 2015
Keeping others happy stands out as the most important factor
Figure 10: Consumer decision-making process when drinking out-of-home, March 2015
Attitudes towards taste are polarised
Figure 11: General attitudes towards drinking alcoholic beverages out of home, March 2015

Issues and Insights

How to target young female drinkers in the on-trade channels
The facts
The implications
How to cross-sell different types of alcoholic drinks in on-trade channels
The facts
The implications
Figure 12: Switching behaviour from RTDs to Western spirits, March 2015
How can occasion-based campaigns work in different on-trade channels?
The facts
The implications
Figure 13: Penetration of baijiu when socialising with family out of home, by location, March 2015
Figure 14: Penetration of beer when dating/with my partner, by location, March 2015
How to appeal to consumers using flavour and taste as the key claim in on-trade channels
The facts
The implications
Figure 15: Agreement with selected statements on taste of alcoholic beverages, March 2015
Figure 16: Agreement with selected statements on taste of alcoholic beverages, by user type, March 2015
What it means

Trend Application

Click and Connect
Return to the Experts
Extend My Brand

Market Drivers

Key points
Teetotalism – A growing trend among young urban consumers
The fast-changing macro-economic environment
Unbalanced economic development widening regional differences
The new normality of China’s economy
The two tiered consumer structure
The end of stocking adjustment
Urbanisation and ageing population leads to the Lewis Turning Point

Who’s Innovating?

Key points
Innovative and less conspicuous packaging shows potential
Figure 17: New launches in global alcoholic drink market, 2010-14
Figure 18: New products from Coca-Cola France with redesigned limited editions, 2009-14
Figure 19: Selected innovative packaging designs in alcoholic drinks market 2014-15
Shareability is crucial in on-trade channels
Figure 20: Stormhoek’s new product line wine 4 friends, 2015
Flavour innovations – What’s next?
Figure 21: Global new product launches with new flavours in the alcoholic drink market, 2010-14
Is flavour innovation really declining?
Which flavours show potential in the beer category?
Figure 22: Global new products launched with flavour as one of the key claims in beer category, by flavour group, 2010-14
Figure 23: Red wine flavoured beer from Suntory launched in Japan, Q4 2014
Figure 24: Oak cliff coffee ale from Deep Ellum Brewing launched in the US, Q4 2014
Figure 25: Cubanisto from AB InBev launched in Belgium, Q4 2014
Figure 26: Harviestoun’s Ola Dubh launched in the UK, 2014
Which flavours show potential in the Western spirits category?
Figure 27: Global new products launched with flavour as one of the key claims in the Western spirits category, by flavour group, 2010-14
Figure 28: Western spirits products with honey flavour, Q4 2014
What could baijiu could learn from sake?
Clear food pairing suggestions
Figure 29: Junmai Ginjo Sake launched by Hokkan Sake Brewing in Japan, Q3 2010
Baijiu-based RTDs targeting female consumers
Figure 30: Shochikubai Shirokoabegura Mio Sparkling Seishu (sparkling Sake) launched in Japan, Q1 2013

Market Size and Forecast and Segment Performance

Key points
The market is stabilising
Figure 31: On-trade alcoholic drink market in China, by volume, 2010-15
Beer is losing market share
Figure 32: Segment performance in the on-trade alcoholic drink market in China, 2010-15
The bumpy recovery of wine and strong performance in spirits leads future growth
Figure 33: Fan chart of on-trade alcoholic drinks in China, 2010-20
Forecast methodology

The Consumer – Alcohol Consumption Change

Key points
Drinking frequency and spending per visit are increasing
Figure 34: Change in alcoholic drink behaviour, March 2015
Figure 35: Alcoholic consumption change 2014-15
At-home occasions tend to be driven by lifestyle
Figure 36: Change in drinking frequency at home in the past 12 months, by gender and age, March 2015
Figure 37: Change in drinking frequency increased in the past 12 months, by household income, March 2015

The Consumer – Penetration of Different Types of Alcoholic Drinks

Key points
On-trade channels enjoy higher overall penetration…
Figure 38: Penetration of alcoholic drinks in at-home and out-of-home occasions, March 2015
Beer: A boost in penetration but losing power for further expansion
Figure 39: Change in out-of-home drinking frequency in the past 12 months, by types of drinks, March 2015
Figure 40: Limited edition for Chinese New Year from Budweiser China, Q1 2015
Figure 41: Dry Pale Ale from Asahi launched in Japan, Q1 2015
Baijiu: A shift from at home to on-trade occasions
Figure 42: Penetration of baijiu in at home and out-of-home occasions, March 2015*
Wine remains a drink for at-home occasions
Figure 43: Wa Wine from Jacob’s Creek launched in Japan, Q2 2013
Baijiu is still struggling to appeal to the young
Figure 44: Penetration of baijiu in both at home and out-of-home occasions, by age, March 2015
Western spirits going mainstream
Figure 45: Penetration of drinking Western spirits out of home, by income, March 2015
Female drinkers shy away from drinking out of home
Figure 46: Repertoire analysis of drinking more than six types of alcoholic beverages, by gender and age, March 2015
Baijiu is further moving towards lower tier cities with no income skew
Figure 47: Penetration of baijiu when drinking out of home, by city tier, March 2015

The Consumer – Attributes Associated with Different Types of Alcoholic Drinks

Key points
Wine and Western spirits enjoy premium status
Figure 48: Correspondence map for alcoholic drink market, March 2015
The wide range of flavours helps RTDs and cocktails to stand out
Beer stands out with its accessible prices
Unhealthy image and strong taste cripple baijiu’s future development
Baijiu’s positive perception remains strong among high earners…
…but consumers are leaving baijiu for other types of drinks across various occasions
Wine is moving further into business-related occasions
Figure 49: Selected attributes associated with different types of alcoholic drinks, March 2015

The Consumer – Drinking Occasions

Key points
Beer dominates casual social occasions
Figure 50: Drinking occasions, by types of alcoholic beverages, March 2015
Wine drinkers are more likely to sip beer when socialising with family out of home
Figure 51: Penetration of beer when socialising with family out of home, by usage of wine, March 2015
The skew towards male drinkers leave gap in the female segment
Figure 52: Penetration of beer in various drinking occasions, by gender, March 2015
Figure 53: Asahi cherry blossom special edition launched in Japan, Q1 2015
Baijiu excels in a wide range of occasions
Beijingers are more willing to drink baijiu in causal social occasions
Figure 54: Penetration of baijiu in selected casual drinking occasions, by selected cities, March 2015
Baijiu is losing consumers to Western spirits
Figure 55: Switching behaviour between baijiu and Western spirits, March 2015
Food pairing has the potential to appeal to a wide audience
Figure 56: Penetration of baijiu when accompanying a meal, by age, March 2015
Figure 57: Nigori Sake from Takashi Sasaki launched in Japan, Q1 2015
Wine stands out in celebratory occasions
Men tend to drink wine when dating…
Figure 58: Penetration of wine when dating with their partners, by gender, March 2015
…but wine does not appeal to young male drinkers when it comes to accompanying a meal or casual social occasion
Figure 59: Penetration of wine in selected occasions, by gender and age, March 2015
Consumers switching to wine when travelling/on holiday or dating
Figure 60: Switching behaviour between wine and other types of alcoholic drinks, by selected occasions, March 2015
Western spirits: on par with baijiu on business events
Guangzhou is leading the casual social occasions
Figure 61: Penetration of Western spirits in selected occasions, by city, March 2015
RTDs show potential as a gateway to Western spirits in certain occasions
Figure 62: Switching behaviour from RTDs to Western spirits, March 2015

The Consumer – Drinking Location

Key points
Chinese restaurants remain the key channel
Figure 63: Drinking locations of alcoholic beverages, March 2015
Specialised drinking venues gain popularity
Figure 64: Penetration of drinking alcoholic beverages in pubs, bars, and wine lounges, by selected demographics, March 2015
Western full-service restaurants attract young female drinkers
Figure 65: Penetration of drinking alcoholic beverages at Western full service restaurants, by age and gender, March 2015
Occasion-based promotions show potential
Baijiu should target family gathering occasions at Asian full-service restaurants
Figure 66: Penetration of baijiu when socialising with family out of home, by location, March 2015
Beer can be romantic
Figure 67: Penetration of beer when dating/with my partner, by location, March 2015

The Consumer – Purchase Decision Making Process

Key points
Keeping others happy stands out as the most important factor
Figure 68: Consumer decision-making process when drinking out of home, March 2015
Consumers are adventurous
High earners showing greater eagerness for innovation
Figure 69: Agreement with selected statements on purchase decision-making process when drinking out of home, by household income, March 2015
Brand loyalty is low
Point of purchase campaign remains crucial

The Consumer – General Attitudes towards Drinking Alcoholic Drinks Out-of-home

Key points
Attitudes towards taste are polarised
Figure 70: General attitudes towards drinking alcoholic beverages out of home, March 2015
Young female drinkers vs old male drinkers
Figure 71: Agreement with selected statements on taste of alcoholic beverages, March 2015
Baijiu drinkers versus Western spirits drinkers
Figure 72: Agreement with selected statements on taste of alcoholic beverages, by user type, March 2015
Social media becomes the major information source
Figure 73: Agreement with selected statements on information channels for alcoholic beverages, March 2015
Figure 74: Tuborg’s O2O campaign, Q2 2015

The Consumer – Attitudes towards RTD Alcoholic Drinks

Key points
RTD segment is expanding in a rapid pace
Figure 75: Attitude towards drinking RTD alcoholic drinks, March 2015
Cross-selling shows potential to target men in their 40s
Figure 76: Agreement of the statement ‘I usually drink other types of alcoholic drinks after having some ready-to-drink alcoholic beverages when drinking out of home’, by gender and age, March 2015
RTD shows potential as a gateway to Western spirits
Figure 77: Switching behaviour from RTDs to Western spirits, March 2015

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