Widespread downtrading among Chinese consumers and high inventories of high-end spirits are putting a damper on alcohol recovery in the People’s Republic. The year 2024 will be one of normalisation for China’s beverage alcohol market, after a difficult 2023, according to the latest insights from IWSR Drinks Market Analysis. “The recovery in China during 2023 wasn’t as smooth or strong as many had expected,” said Shirley Zhu, IWSR research director for Greater China. Total beverage alcohol volumes in China grew only marginally between 2022 and 2023, as losses for spirits (-9%) and wine (-14%) were offset by increases for beer (+3%) and RTDs (+1%). High inventories High inventory levels for XO Cognac and high-age whisky have prompted continued de-stocking in the early months of 2024, following a very difficult 2023. The same trend is also being reflected in the baijiu market, though premium and super-premium segments are doing better than those lower down the price ladder. “There were higher inventory levels by the end of the year, despite the efforts of brand owners and wholesalers to move stock,” Zhu said. For the first time since 2000, malt Scotch saw volume declines across all price tiers. Volumes for the total malt Scotch category fell -11% in 2023. IWSR expects it to suffer a further loss in 2024, as challenges continue, but expects growth to return, with 2023-28 volumes rising at a CAGR of 4%. A half year trading update from the Artisanal Spirits Company, owner of the Scotch Malt Whisky Society,
This Article was originally published on The Drink Business - Wine
