Spirits in Asia Pacific

October 2019

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.

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This report comes in PPT.

Key findings

Slower growth in Asia Pacific due to slowdown in China

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.

Local spirits see slower growth in some markets

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.

Demographic changes drive growth in premium spirits categories

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.

India is the main growth driver 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.

Key findings
Volume growth driven by lifestyle trends
Asia Pacific growth stagnates as China sees slowdown in spirits growth
Local spirits continue to dominate in the region
Whiskies see dynamic growth in other markets
Indonesia sees fastest growth in the region
Brandy and cognac see substantial declines in the Philippines
Local spirits continue to dominate, despite slowing growth in China
Varying off-trade/on-trade splits across Asia Pacific
Alcohol specialists remain a prominent channel in the region
Strong growth in e-commerce sales in China
A fairly consolidated spirits market in Asia Pacific
Companies with domestic focus dominate spirits market in Asia Pacific
Highly concentrated focus of biggest companies
International players increase their presence in other countries
Top 10 brands dominated by local brands
India remains the growth driver for spirits
Larger markets shaping overall forecast growth
Southeast Asia forecast to see higher growth
China: market context
China: competitive and retail landscape
Japan: market context
Japan: competitive and retail landscape
Vietnam: market context
Vietnam: competitive and retail landscape
India: market context
India: competitive and retail landscape
Philippines: market context
Philippines: competitive and retail landscape
Thailand: market context
Thailand: competitive and retail landscape
South Korea: market context
South Korea: competitive and retail landscape
Kazakhstan: market context
Kazakhstan: competitive and retail landscape
Taiwan: market context
Taiwan: competitive and retail landscape
Indonesia: market context
Indonesia: competitive and retail landscape
Uzbekistan: market context
Uzbekistan: competitive and retail landscape
Malaysia: market context
Malaysia: competitive and retail landscape
Hong Kong, China: market context
Hong Kong, China: competitive and retail landscape
Singapore: market context
Singapore: competitive and retail landscape
Azerbaijan: market context
Azerbaijan: competitive and retail landscape
Pakistan: market context
Pakistan: competitive and retail landscape

Alcoholic Drinks

Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.

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