By 2021, China is expected to surpass the United Kingdom as the world’s second-largest market for wine.1 With more millennials travelling abroad and exhausting tourist sites, there is now greater opportunity for countryside vineyards in China to attract millennials who are on the hunt for leisure activities2 and an escape from their fast-paced urban lifestyles. Wine is also becoming an increasingly popular drink because of its milder flavour and lower alcohol content compared to traditional Chinese liquors like baijiu.
A recent report on China’s wine market has revealed that it could reach US$23 billion in sales revenue by 2021, with a strong annual growth rate of more than 30%.1 This trend has not gone unnoticed by the likes of Alibaba, which has debuted an unmanned wine shop in Hangzhou.3> Here, consumers can purchase wine and spirits with facial recognition technology.4
But, wine isn’t the only alcoholic beverage lifting the spirits of Chinese millennials. As the largest beer market in the world, Chinese millennials are starting to turn their sights to more premium or foreign brews, fuelled by the rise in disposable income and a wider range of options in the market. According to a report by Bloomberg Intelligence analysts, China’s market share of premium lager has more than doubled in five years.5
These numbers signal potential opportunities brewing in China’s domestic craft beer market, driven by a growing demand among young adults for premium beer.
Just like the wine and beer markets that are growing well in China, our Eastspring Investments professionals have the first-hand knowledge and constantly seeking for potential opportunities for growth. Learn more about us here.