Medical journal The Lancet, recently reports that alcohol consumption in China is on the rise.
Statistics show that in 2017, 11 liters of alcohol, mostly spirits and beer are being drank by men. Women on the other hand, takes in about three liters on average. On a general note, it was revealed that Chinese adults drank more than seven liters of alcohol, a 70% increase from what the 1990 numbers tell.
Moreover, the report reveals how alcohol consumption has globally risen in the past 30 years, significantly because of the increased sales in China and India.
Jakob Manthey is the report’s lead author. He is a researcher at the Institute of Clinical Psychology and Psychotherapy in Dresden, Germany. He recalls that before 1990, it was high income countries that mostly consume alcohol. But such pattern gradually changed when middle income countries like Vietnam, India and China’s consumption increased as compared to when most European countries experienced down time in consumption.
Snow Chen, senior cultural strategy consultant at market research company Kantar reveals how China’s drinking culture has drastically changed as more consumers seem to have been consuming a lot of alcohol as compared to before.
In the past, drinking is mostly associated with social occasions or business dinners but now, it is seen to be done to connect drinking with personal occasions and use alcohol to relax, have fun or to indulge. One factor to consider is how Western drinking culture and lifestyle seem to have had an effect on the current trend.
Anothing thing is that Chinese consumers seem to have a better understanding of different drinks apart from their various and subjective requirements for various types of alcohol they would like to drink.
By 2030, the Lancet foresees how China will eventually surpass the United States in alcohol intake. By that time, Chinese adults will have a headway against US counterparts and are projected to drink about 10 liters annually on average leaving the US with a 9,5 register. By that time, 77% of Chinese consumers are forecasted to drink alcohol at least occasionally, compared to the 73% US is most likely to achieve.
Major e-commerce platform Suning released a report that reveals how alcohol sales significantly rose last year. Among the popular choices were wine, spirits and beer.
According to the report,baijiu was seen having an increase in sales.It is more popular in lower-tier cities and is commonly used for wedding banquets. The rise was quite understandable since there has been 20 million couples marrying in China from 2010-2018.
Meanwhile, beer and wine sales have also been steadily on the rise, imported wine and craft beer to specify. Chinese women prefer Fruit beer, nonalcoholic beer and sweet wine, exceeds the industry average growth as these products prove to be Chinese women preferences.
In 2011, Alltech Beverage, US beer and spirits producer, shipped its first Kentucky bourbon brand Town Branch to China.
Jonathan Ardoin, head of Alltech Beverage Division China, reveals previously, their products received a lukewarm welcome from the locals. But that has completely changed recently because middle class Chinese are now ready to try spirits or beer from overseas.Furthermore, he noted how people nowadays are willing to get out of their comfort zones when drinking too.
As an aftermath, it has a factory set up in Hebei and is currently selling a range of imported drinks in China.
The Chinese people are following the global trend that has caused an increased demand for imported alcoholic beverages. Alcohol is being consumed nowadays to relieve pressure for people who are constantly under stress.
Meanwhile, Irish whisky is the industry’s fastest growing market while scotch whisky sales has seen a decline in Europe and in the US. After receiving a lot of inquiries from China, Alltech began importing a range of whisky into the country last year.
It is most likely relevant to the fact that Chinese consumers began to develop a passion for cocktail bars in Guangdong province. Numbers suggest that at least 200 bars opened in the past 18 months.
Another attributable factor is the place and location where Chinese consumers drink alcohol. According to Loris Li, research director at Mintel China Reports, this has certainly affected the increase in the domestic alcohol consumption last year.
Li puts emphasis on how drinking with family can be a direct factor in boosting sales.
Another strategy which has been working well is the effort to attract young drinkers. Maotai which has only been associated with mature image and high end occasions has begun attracting young consumers through modification of design and packaging.
Meanwhile, Jiangxiaoba came up with something that has a less spicy taste than the traditional baijiu in response to the younger generation’s demand for a lighter taste of liquor. Also, they made an effort to lessen the alcohol content plus had packaging to match younger people’s taste.
Like any other thing, change is the only constant thing. The demands of the Chinese consumers have become diversified and brands have to evolve as well in order to meet those demands.
