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RTD Alcoholic Drinks - China - June 2017

Published By :

Mintel

Published Date : Jul 2017

Category :

Alcoholic Beverages

No. of Pages : N/A

China’s RTD alcoholic drinks market is estimated to be slowly recovering in 2017 in both volume and value sales from its significant fall in 2016. Companies and brands were relying too much on marketing and ignoring the products per se, which contributed to the market’s sudden rise as well as causing the sudden fall. Flavours and ingredients should be the key innovation direction going forward for RTD alcoholic drinks. Women should still be the key target segment, however, more female-oriented products that look beyond common fruit-flavoured RTD alcoholic drinks, such as those with unique ingredients indicative of health and beauty benefits, could potentially be the inspirations for new product developments.

Table of Content

OVERVIEW
What you need to know
Covered in this Report
Definition

EXECUTIVE SUMMARY
The market
Figure 1: Total market volume of RTD alcoholic drinks in China, 2013-17
Figure 2: Total market value of RTD alcoholic drinks in China, 2013-17
Companies and brands
Figure 3: Market share of leading RTD alcohol players, by value, China, 2015 and 2016
The consumer
Most RTD alcoholic drinkers are light users
Figure 4: Frequency of drinking different alcohol types in the last 12 months, March 2017
Casual social occasions top the list
Figure 5: Consumption occasions, March 2017
RTD alcoholic drinks penetrate in both off-trade and on-trade channels
Figure 6: Purchase channels, March 2017 vs. August 2016
Potential white space in RTD alcohol base
Figure 7: Ideal product features – Base, March 2017
What we think

ISSUES AND INSIGHTS
How can RTD alcoholic drinks attract female consumers?
The facts
The implications
Figure 8: Selected RTD alcoholic drinks, international markets, 2012-17
Figure 9: RTD alcoholic drinks with health or premium claims, international market, 2017
Figure 10: Selected RTD alcoholic drinks with low or no alcohol, international markets, 2016-17
How should RTD alcoholic drinks differentiate and focus on product quality (eg flavours and ingredients)?
The facts
The implications
Figure 11: RTD alcoholic drinks featuring wine, international market, 2017
Figure 12: RTD alcoholic drinks with botanicals or cola flavour, international market, 2016-17
How should RTD alcoholic drinks position towards occasions and lifestyles?
The facts
The implications
Figure 13: Aurora Jungle-Juice, Bahama
Figure 14: Augmented reality cocktail menu, UK, 2017
Figure 15: South Pacific Brewery (SPB), 2010

THE MARKET – WHAT YOU NEED TO KNOW
Signs of recovery for both volume and value in 2017
Consumption channels transition from on-trade to off-trade
Concept of “craft” brings more varieties

MARKET SIZE AND FORECAST
Market story of RTD alcoholic drinks in 2013-16
Signs of recovery of volume in 2017
Figure 16: Total market volume of RTD alcoholic drinks in China, 2013-17
Value market also projects a recovery in 2017
Figure 17: Total market value of RTD alcoholic drinks in China, 2013-17
Future market more likely to be flat and towards slight recovery

MARKET FACTORS
Consumption channels transition from on-trade to off-trade
Concept of “craft” brings more varieties
Lack of new RTD alcoholic drinks and consumers shifting to other alcoholic drinks
Figure 18: New alcoholic drink launches, by category, China, 2014-16

KEY PLAYERS – WHAT YOU NEED TO KNOW
Top players have significant share while others dropped out
Rio’s bottle and can packaging for both non-retail and retail
RTD alcoholic drinks without additives/preservatives

MARKET SHARE
Bairun Investment Holding Group CO., Ltd. – Rio
Bacardi Ltd. – Breezer
“Other” players left the RTD alcohol market
Figure 19: Market share of leading RTD alcohol players, by value, China, 2015 and 2016

COMPETITIVE STRATEGIES
Rio’s bottle and can packaging for both non-retail and retail
Figure 20: Rio Original and Rio Strong, bottled and caned, 2016-17
Figure 21: Rio limited edition 2017 – Line Friends, 2017
Figure 22: Retail price difference bottle/can, China, 2016-17
Figure 23: Smirnoff, bottle and can, Brazil and US, 2017
Taking inspiration from alcopops in the West
Figure 24: Alcopops, UK, 1996-2017
Figure 25: Selected RTD alcoholic drinks, international market, 2015-16

WHO’S INNOVATING?
Product claims of new launches
Figure 26: Top product claims in new RTD alcoholic drinks launches, China, 2014-16
RTD alcoholic drinks featuring social media
Figure 27: RTD alcoholic drinks with social media claims, China, 2015-17
RTD alcoholic drinks without additives/preservatives
Figure 28: Selected Rum Cocktail with no additives/preservatives claims, China, 2015
RTD alcoholic drinks designed for men
Figure 29: RTD alcoholic drinks for men, China and Japan, 2012-16
Flavour innovations – China vs. global
Figure 30: Top flavours of new RTD alcoholic drinks, China, 2015 and 2016
Figure 31: Selected citrus fruit-flavoured and rose-flavoured RTD alcoholic drinks, China, 2016
Figure 32: Top flavours of new RTD alcoholic drinks, global, 2015 and 2016
Figure 33: Citrus fruit-flavoured RTD alcoholic drinks, international market, 2017
Figure 34: Selected top flavours of RTD alcoholic drinks, international market, 2017
Global packaging innovations – RTDs on tap and replicating bar experience
Figure 35: RTD alcoholic drinks on tap, international market, 2015-16
Figure 36: Packaging replicating bar experience, international market, 2015-16

THE CONSUMER – WHAT YOU NEED TO KNOW
RTD alcoholic drinks are perceived as versatile and fashionable
Women tend to be light users of RTD alcoholic drinks
Opportunities to target both older and younger consumers
Men favour out-of-home occasion while women favour in-home
Juice-blended RTD alcoholic drinks are still most popular
Alcohol content demand for “light” similar to “normal”

PERCEPTIONS TOWARDS DIFFERENT ALCOHOL TYPES
RTD alcoholic drinks are perceived as versatile and fashionable
Figure 37: Perceptions towards different alcohol types, March 2017
Figure 38: Variety pack, international market, 2017

FREQUENCY OF DRINKING DIFFERENT ALCOHOL TYPES
Most RTD alcoholic drinkers are light users
Figure 39: Frequency of drinking different alcohol types in the last 12 months, March 2017
Figure 40: Frequency of drinking different alcohol types in the last 12 months, by gender, March 2017
Light users are skewed to young people in their twenties
Figure 41: Frequency of drinking different alcohol types in the last 12 months, by age, March 2017

CONSUMPTION DISADVANTAGES
Lack of knowledge is the top reason for not drinking RTD alcoholic drinks
Figure 42: Consumption disadvantages, March 2017
Opportunities to target both older and younger consumers
Figure 43: Consumption disadvantages, by age, March 2017

CONSUMPTION OCCASIONS
Casual social occasions top the list
Figure 44: Consumption occasions, March 2017
Men favour out-of-home occasion while women favour in-home
Figure 45: Consumption occasions, by gender, March 2017
Figure 46: Limited edition or premium RTD alcoholic drinks, international markets, 2017

PURCHASE CHANNELS
High penetration in both off-trade and on-trade channels
Figure 47: Purchase channels, retail vs. on-trade, March 2017
Figure 48: Purchase channels, March 2017 vs. August 2016
High earners tend to purchase more RTD alcoholic drinks across all channels
Figure 49: Purchase channels, by monthly household income, March 2017

IDEAL PRODUCT FEATURES
Potential white space in RTD alcohol base
Figure 50: Ideal product features – Base, March 2017
Juice-blended RTD alcoholic drinks are still most popular
Figure 51: Ideal product features – Flavour/taste, March 2017
Women favour juice blend while males go for botanicals
Figure 52: Ideal product features – Flavour/taste, by gender, March 2017
Alcohol content demand for “light” similar to “normal”
Figure 53: Ideal product features – Alcohol content, March 2017
Imported brands are preferred
Figure 54: Ideal product features – Origin, March 2017
Figure 55: RTD alcohol with premium positioning, international market, 2017
Glass bottle is more ideal than can
Figure 56: Ideal product features – Packaging, March 2017
Figure 57: Consumption occasions, by packaging preference, March 2017
High earners value packaging in both glass bottles and cans
Figure 58: Ideal product features – Packaging, by monthly household income, March 2017
Mid-price tier has the most potential
Figure 59: Ideal product features – Price, March 2017

MEET THE MINTROPOLITANS
Mintropolitans are frequent users of RTD alcoholic drinks as well as others
Figure 60: Frequency of drinking different alcohol types in the last 12 months, by Mintropolitans vs non-Mintropolitans, March 2017
Mintropolitans consume more RTD alcoholic drinks in diverse occasions
Figure 61: Consumption occasions, by Mintropolitans vs non-Mintropolitans, March 2017

APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations

List of Table

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