Updated Oct 4, 2022 17:29

Spirits And Liqueurs Market in China

Market Overview
The Chinese spirits and liqueurs market expanded remarkably to $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption posted a buoyant increase. As a result, consumption attained the peak level of $. From to , the growth of the market remained at a lower figure.

In value terms, spirits and liqueurs production rose sharply to $ in estimated in export price. Overall, production continues to indicate prominent growth. The growth pace was the most rapid in 2019 with an increase of %. As a result, production attained the peak level of $. From to , production growth remained at a somewhat lower figure.


Consumption
In , consumption of spirits, liqueurs and other spirituous beverages increased by % to litres, rising for the second year in a row after two years of decline. In general, the total consumption indicated a tangible increase from 2007 to : its volume increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against indices. Over the period under review, consumption attained the maximum volume in and is expected to retain growth in the near future.

The value of the spirits and liqueurs market in China reached $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption saw a prominent expansion. As a result, consumption reached the peak level of $; afterwards, it flattened through to .


Market Forecast
Driven by increasing demand for spirits, liqueurs and other spirituous beverages in China, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to litres by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of spirits and liqueurs in China were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for spirits and liqueurs. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
China remains a net importer of spirits and liqueurs; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of litres, which was equal to $.