【正文】 ic Drinks by Sector: % Total Value Growth 20222022....................................................................................................................................31Table 28 Forecast Sales of Alcoholic Drinks by Region: Total Volume 20222022 .......................31Table 29 Forecast Sales of Alcoholic Drinks by Region: Total Value 20222022...........................31Table 30 Forecast Sales of Alcoholic Drinks by Region: % Total Volume Growth 20222022 ..........................................................................................................................32Table 31 Forecast Sales of Alcoholic Drinks by Region: % Total Value Growth 20222022....................................................................................................................................32Definitions.................................................................................................................................................................32Summary 3 Research Sources ...............................................................................................................33Alcoholic drinks China? Euromonitor International Page 1ALCOHOLIC DRINKS IN CHINAEXECUTIVE SUMMARYStrong Market Performance Driven by Economic GrowthWith expected GDP growing at more than 11% in 2022, China’s economic growth reaches another new height. The economic growth also contributes greatly to the alcoholic drinks market, as the total volume sales is outperforming than 2022 in terms of actual volume sold. Upgrading of consumers expenditure structure in urban markets drives demand up during 2022. Domestic Players Rise To Lead the MarketDomestic players remained strong in China, as many of them have been establishing very loyalty brands due culture and historical benefits. Moreover, the bull stock market in 2022 also gives a robust injection for big panies like China Resources Enterprise and Wuliangye Yibin Co Ltd. In less developed regions such as Northwest China and Mid China, the local brands appear to be dominant in beer and spirits as locals are more loyal to their own brands. More Foreign Companies Stirs Up the Competitive EnvironmentEnters of foreign panies in beer and spirits is pushing the market to be more opened and petitive in first tier cities in China. First tier cities like Shanghai and Guangzhou are more open to foreign brands and the local consumption habit is more adoptive to exotic products. Increased volume and imported alcoholic drinks gives greater stern in those urban markets. On the other hand, domestic players are seeking joint ventures with foreign partners to start to explore the abroad. Specialist Shops Start To Catch AttentionWhile chained hypermarkets and independent grocery stores are the main distribution channel for alcoholic drinks. The emergence of specialist shops is being important to wine and spirit manufacturers. The cost of sales in specialist is lower than hypermarkets, and the specialist better serves high end consumers in terms of product quality and variety. Moreover, manufacturers start to consider building their own specialist shops, for example, Kuichow Maotai and Wuliangye have already established a small scale of distribution work of their own. Forecast Growth Expects To Be Flat Due To Market Consolidation2022 continues to be the year of consolidation, leading international players entered into China through acquisition of local brands. Leading domestic beer and spirits manufacturers also gained great strength from the flourish stock market, they are very active in mergers and acquisition. Competitive market environment is shifting from fragmented to concentrate. Small and medium sized domestic players will gradually withdraw from the market. KEY TRENDS AND DEVELOPMENTSStrong Demand Drives Prices UpNational statistic data showed that in the first half of 2022, China’s GDP grew at %, and the whole year’s GDP is expected to have similar growth. The hot economic growth not just brings high volume of retail consumption in China。 Spirits Co. The two panies released a series of promoting activities during the 2022. However, the results of such large scale of campaign are yet to show in 2022. Tsingtao Brewery Co Ltd, tight up the national TV station CCTV, launched a documentary programme called “Qing Guo Qing Cheng”, which documents the best views of more than 150 cities in China to select the best city in the name of Tsingtao Beer for Olympic game. Although the huge publicity expense cannot bring immediate increase in volume sales, it is believed to have long term effect as the programme will be broadcast to the world. OutlookAlcoholic drinks China? Euromonitor International Page 3The success of Olympic sponsors is making peer petitors more jealous and eager to get involved. Though majority of the domestic players did not get the sponsorship due to their own financial strength and brand value, many of them are doing the sort of the Olympic marketing in the best practice. For example, domestic spirits makers like Kweichow Maotai Co Ltd and Wuliangye Yibin Co Ltd launched series of red packaged products made for Olympic Game. Maotai’s sub brand Jinliufu used to be China national team’s sole provider of celebration spirits, its red labelled products represents the Chinese tradition of happiness and fortune, which is fit to the theme of Olympic game in accordance to Chinese people’s perception. Wuliangye launched their new packaged product, which is made into a shape of panda, and panda is one of the lucky dolls for the Beijing Olympic game in 2022. The Wuliangye panda bottle is expected to bring big hit in 2022. Future ImpactThe success of Beijing Olympic game in 2022 will have profound impact on China’s leading alcoholic drink makers. Note only Tsingtao Brewery Co Ltd and COFCO Wines am