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China Spirits Market

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China Spirits Market
Voluntary Report - public distribution
Date: 8/3/2007
GAIN Report Number: CH7063
CH7063
China, Peoples Republic of

Product Brief

China Spirits Market

2007

Approved by:
Maurice House
U.S. Embassy
Prepared by:
Steve Leu

Report Highlights:
China’s spirits sales were $25.1 billion in 2006, representing 43% of all alcoholic drinks consumed and making it China’s number one alcoholic beverage in current value terms. Spirits consumption revolves around baijiu, followed by whiskey and grape brandy. U.S. whiskey and bourbon exports to China grew 118% in 2006, with total sales of $5.9 million. Foreign spirits currently make up 10% of domestic spirits sales with the greatest growth potential in high-end baijiu, the burgeoning Scottish whiskey sector, and “healthier” spirits alternatives. For U.S. exporters, overcoming market barriers such as a lack of brand awareness and a lack of consumer knowledge about different spirit types are vital to competing against the emerging wine sector and popular beer market. FAS China's Agricultural Trade Offices are available to provide export assistance for U.S. spirits producers.

Includes PSD Changes: No
Includes Trade Matrix: No
Unscheduled Report
Beijing [CH1]
[CH]
China’s Spirits Market: Overview
|2006 China Alcoholic Beverage Domestic Consumption |
| |By Value |By Volume |
|Spirits |43.3% |9.8% |
|Beer |40.7% |84.3% |
|Wine |16.0% |9.8% |
|(Source: Euromonitor International) |

China’s spirits sales were $25.1 billion in 2006, representing 43% of all alcoholic drinks in current value terms. It remains slightly ahead of beer as China’s number one alcoholic beverage in total sales value. Spirits consumption revolves around baijiu (a traditional Chinese liquor), followed by whiskey and grape brandy (cognac). Baijiu is

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