China's alcohol intake on the rise, thanks to growing affluence

BEIJING • A large liquor cabinet was the first thing that came to his mind when Mr Lu Xin considered decorating a new apartment with his wife.

"We are definitely not alcoholics," said Mr Lu, 32, who is from Beijing and works in the financial industry. "But it is relaxing to take a sip of wine or whisky before going to bed at times, and my wife appreciates various kinds of cocktails and fruit wines."

A recent report in medical journal The Lancet said that alcohol consumption in China is on the rise.

In 2017, men on average drank more than 11 litres of alcohol, mostly spirits and beer, while women drank 3 litres. On average, Chinese adults drank more than 7 litres of alcohol, up by nearly 70 per cent from 1990.

The report added that alcohol consumption globally has risen significantly in the past 30 years, largely due to increased sales in China and India.

Ms Snow Chen, senior cultural strategy consultant at market research company Kantar, said: "In the past, drinking in China was mostly associated with social occasions or business dinners.

"Today, with economic development, the drinking culture and lifestyle in the West has gradually been brought to China. Chinese are now more likely to connect drinking with personal occasions and use alcohol to relax, have fun or to indulge themselves," she noted.

Moreover, Chinese consumers have now become more discerning and have a better understanding of different drinks, she said.

"For example, more consumers have begun to sample different types of beer, or know how to appreciate and evaluate beer, not merely drinking it as a companion to food," she added.

The Lancet report predicts that China will surpass the United States in alcohol intake per capita by 2030, with Chinese adults projected to drink more than 10 litres annually on average and per capita consumption of alcohol in the US to drop to 9.5 litres.

Sales of beer and wine in China have been steadily rising, especially imported wine and craft beer. Chinese women prefer fruit beer, non-alcoholic beer and sweet wine, with growth of all three exceeding the industry average.

Total spending last year by Chinese on imported alcohol was estimated at 565 billion yuan (S$112 billion), up by 1 per cent year on year, while spending on domestic alcohol was estimated at 501 billion yuan, up by 4.1 per cent year on year.

Ms Chen said many alcohol producers are now striving to attract young drinkers. For example, Chinese liquor brand Maotai has started to attract younger consumers, using different styles of packaging and design.

The baijiu brand Jiangxiaobai was launched in 2011, based on the younger generation's preference for spirits with a less spicy taste than traditional baijiu.

Mr Liu Peng, deputy general manager of Jiangxiaobai, said: "Those born in the 1980s and 1990s prefer the taste to be light and pure, which is still an uncontested market."

Mr Jonathan Ardoin, head of Alltech Beverage Division China, said the Chinese market is evolving much faster than elsewhere, and innovation is the key to survival.

"Chinese consumers like completely different flavours (from) those in Europe or the US, and they are far more open-minded about trying something new," he added.

CHINA DAILY/ASIA NEWS NETWORK

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A version of this article appeared in the print edition of The Straits Times on July 20, 2019, with the headline China's alcohol intake on the rise, thanks to growing affluence. Subscribe