Market Trends of Asia-Pacific Alcoholic Beverage Industry
This section covers the major market trends shaping the APAC Alcoholic Beverage Market according to our research experts:
Rising Demand for Cocktails and Other Mixed Drinks
The alcoholic beverage market is growing due to changing consumption patterns and increased disposable incomes. To meet evolving consumer tastes and preferences, alcoholic beverage makers are now introducing ready-to-mix hybrid beverages. Hybrid beverages are alcoholic cocktails that combine elements from several different beverage categories. They're made with unusual flavor combinations, ingredients, and production processes borrowed from various drinks. For example, they produce spirits or beers in a wine barrel to give them a particular flavor. In the spirit sector, hybrid beverages are especially prevalent, with products like beer blended with rum and tea mixed with vodka. Malibu Red (rum and tequila), Kahlua Midnight (rum and Kahlua), and Absolut Tune are among the most popular hybrid beverages on the market (vodka and sparkling wine).
Furthermore, cocktails, mixed drinks, and shooters are the frequently featured flavored spirits in the market. The changing consumer behavior in alcoholic beverages toward flavored infused drinks is increasing the demand for flavored spirits in the market. The Indian flavor profile for alcohol have been evolved, and prefers more refined mixed alcohol in the market. Citrus, watermelon, green apple, and raspberry are considerably the most preferred flavors in assorted alcohol beverages among consumers. Flavored rum is one of the highest-consumed drinks in the market. This, in turn, encourages rum makers to introduce new flavors. For instance, in July 2021, Bacardi Limited launched Bacardi tropical, a limited-edition flavored rum in the market. The rum contains mixed tropical fruit flavors, including pineapple, coconut, and guava.
China Holds the Highest Share in the Market
China holds the largest market share in the Asia-Pacific region. The emerging nightlife culture in cities, an increasing proportion of Chinese consumers purchasing alcohol as a gift for acquaintances, and a greater willingness to try new varieties of alcohol are all driving the alcoholic beverages market in China. Furthermore, growing income levels and improvements in distribution networks and infrastructure made alcoholic beverages more accessible in the cities and boosted the demand for imported alcoholic beverages. Baijiu, the local spirit of China, is reported to witness the highest demand.
The factors contributing to the market growth include increasing demand for alcoholic beverages due to the huge population base in China, coupled with the growing consumption of alcohol by the young generation. More and more international brands are targeting young consumers, by building fashionable images since they have enormous consuming potential and are willing to pay for fashionable lifestyles. In 2021, according to World Bank, 18% of the Chinese population falls in the age bracket of 0-14 years and 70% of the population falls in the age bracket of 15-64 years. According to United Nations data, the population of China is 1450.81 Million in July 2022. The consumption of spirits by the growing population is one of the major factors that contribute to market growth. According to the WTO (World Trade Centre), China is one of the largest consumers of alcohol, with an increase in per capita consumption of 0.9 liters of pure alcohol by 2025 from 2016.
