Spirits Market Share in China Growth and Research Overview 2014
Most up-to-date research on "Spirits - China - September 2014" to its huge collection of research reports.
The forty percentage point increase in the spirits market in 2010 seems to be a distant memory now. The golden ten years of the spirits market ended in such an abrupt way that few could ever have rightly predicted it happening. The shrinking high-end segment and the subsequently over-crowded mid-range have made life difficult for spirits brands in 2012/13, with the growth rate of spirits market in value terms shrinking to only 13%. Mintel’s 2014 forecast puts the growth rate at merely 6.4%, just a couple of percentage points above the inflation rate, making it the worst performance since the start of the golden ten years at the beginning of 2000.
Browse Detail Report With TOC @ http://www.researchmoz.us/spirits-china-september-2014-report.html
Baijiu is under pressure from both the regulatory perspective and the competition from its main rivalry, Western spirits. Although baijiu maintains 98% of the market share, its core user base, men in their thirties and forties and consumers from tier one cities, are showing signs of decline. In order to shield itself from the competition, baijiu brands will need to address consumers’ concerns over its health implications and strong taste by offering milder and lighter versions of baijiu. An original liquid concept could also be utilised to solidify baijiu’s presence in lower tier cities.
Western spirits are facing different types of challenges. Lack of knowledge makes adoption of Western spirits a slow and costly process. With the initial hype dying out, Western spirits brands are in the right place to nurture the market to achieve more sustainable growth in the future.
Table of Content
The painful reshuffle leads to a sustainable growth in the future
Figure 1: Best- and worst-case forecast of China retail value sales of spirits, 2009-19
Gender barriers most pronounced in baijiu category
Figure 2: Reasons for not drinking baijiu, June 2014
Lack of knowledge stops consumers from drinking Western spirits
Figure 3: Reasons for not drinking Western spirits, June 2014
Spirits users’ willingness to trade up is high
Figure 4: General attitudes towards drinking spirits, June 2014
The eagerness to see product innovation is high in the baijiu category
Figure 5: Attitudes towards production innovation concepts for baijiu, June 2014
What we think
Browse Reports in Alcoholic Beverages @ http://www.researchmoz.us/alcoholic-beverages-market-reports-125.html
Insights and Issues
Is the knowledge barrier of Western spirits breakable?
Is drinking at home showing potential in the spirits market?
Are milder, healthier baijiu products showing potential among the young?
How to make baijiu more suitable for women?
Make it Mine
Rising disposable income encourages consumers to trade up…
Figure 6: Disposable income per capita household in urban China, 2005-13
… but the ongoing anti-extravagance campaign will drive spirits prices down
Rising food prices further squeeze baijiu brands’ profits…
Figure 7: Wholesale prices of key staples in China, 2009-14
… but the consumption tax reform is likely to ease the pressure
For More Reports Browse @ https://www.linkedin.com/today/author/68229468
ResearchMoz is the one stop online destination to find and buy market research reports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with our huge collection of market research reports. We provide our services to all sizes of organizations and across all industry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well as publishers and will assist you in making an informed decision by giving you unbiased and deep insights on which reports will satisfy your needs at the best price.
For More Information Kindly Contact:
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.