Asia Pacific is the largest spirits market region globally, as a result of its large population, despite low per capita consumption. Growth in the region is largely influenced by China and India, its two biggest markets. While the region is currently dominated by local spirits, there is potential for growth in other spirits categories, owing to rising disposable incomes, changing lifestyles and growing consumer awareness.
This report comes in PPT.
While spirits sales are still growing in Asia Pacific, growth slowed over the review period, which can be attributed to slowing growth in China’s spirits consumption volume, particularly in local spirits. Strong growth is, however, still apparent in other countries, such as India, Thailand and the Philippines.
While local spirits still overwhelmingly dominate spirits sales in Asia Pacific, some local spirits are seeing slower growth in their home markets, largely due to maturity. In China, increases in production costs have translated into higher unit prices, which has also negatively impacted volume sales. Local spirits players are likely to have to innovate to maintain their appeal.
Younger adult consumers’ preferences are expected to shape future demand for spirits. Increasing disposable incomes, coupled with consumers becoming more educated and developing increasingly sophisticated tastes in spirits, will drive growth in premium categories, such as single malt Scotch whiskies. Changes in lifestyles and drinking occasions, for instance as younger consumers become more accustomed to consumption of cocktails during social occasions, will also drive demand for spirits.
Although China continues to see the highest spirits consumption volume in the region, India is forecast to see the highest absolute volume growth between 2013 and 2018, helping to drive the region’s growth. With its large population, India represents a market with considerable potential. Tier 2 and 3 cities, in particular, offer substantial growth potential for major players, with rising affluence and increased awareness in these cities.
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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