Cider/Perry in China

PRE-COVID-19 PERFORMANCE

Cider/Perry continues to see dynamic growth, but remains a small category

Although cider/perry sales remain quite small compared with other alcoholic drinks, the category continued to record strong growth rates in both volume and value terms in 2019. This was mainly being driven by women and young adult consumers who are fond of flavoured alcoholic drinks with a low alcohol content.

Low-alcohol nature of the products helps drive cider/perry growth

Although it is still a niche in alcoholic drinks in China, cider/perry has more potential than other alcoholic drinks thanks to its low-alcohol attributes. In addition, local consumers perceive cider/perry to be healthier than many other alcoholic drink products, as it is made from the fermented juice of apples or pears, and also contains malic acid, pyruvate, antioxidants and other beneficial substances, which other alcoholic drinks do not have.

Strongbow continues to lead cider/perry; Urbrew and Zeffer team up for new product

As the acquisition by China Resources of Heineken China’s operations was finally completed in November 2018, the Strongbow brand was transferred to China Resources from Shanghai Asia Pacific Brewery. In terms of sales volume, Strongbow surpassed Somersby from Carlsberg Brewery to become the leading brand in 2018, and maintained its leading position in 2019.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of cider/perry are expected to fall by 10% in 2020 in light of the impact of COVID-19. This compares to an expected 10% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Recovery and opportunities

Cider/perry will see an immediate recovery from the stagnating volume and value (at constant 2019 prices) sales in 2020, with very dynamic growth in 2021, followed by more strong year-on-year performances in the rest of the forecast period. At the end of the review period, e-commerce was already an important distribution channel for cider/perry, accounting for just under a third of off-trade volume sales of this product, putting it behind only supermarkets.

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