RTDs in China - 2024 Market Data
KEY DATA FINDINGS
Total volume sales rise by 12% in 2023 to 363 million litres
Shanghai Bacchus Liquor Co Ltd is the leading player in 2023, with a total volume share of 73%
Total volume sales are set to increase at a CAGR of 9% over the forecast period to 559 million litres
2023 DEVELOPMENTS
Driven by younger consumers of legal purchasing age, rtds in china maintains robust growth
RTDs in China maintained strong growth in both off-trade volume and current value terms in 2023, with both increasing by double digits, with on-trade sales also rising. Generally, younger consumers of legal purchasing age in China are gradually embracing lower alcohol drinks, including RTDs. Brands such as the leader Rio and others are becoming increasingly common and prominently displayed on the shelves of urban supermarkets in China. A significant factor driving the high growth of RTDs is that the younger generation of Chinese consumers (of legal purchasing age) are attracted by the low alcohol content and colourful packaging of RTDs. Combined with affordable prices, RTDs have therefore already become common on the dining tables of younger adults.
Also, young consumers’ attitudes toward drinking differ from traditional Chinese views. They see drinking alcohol more as a form of enjoyment, a social activity, and a lifestyle choice. Unlike traditional Chinese drinkers, who might focus on the business aspect of drinking, younger consumers prioritise refined tastes and unique consumption experiences. For example, brands such as Rio have developed RTDs in various flavours, such as white peach, grape, and passion fruit, greatly satisfying the desire amongst younger adults for novel drinking experiences.
More active marketing campaigns bring major brands closer to consumers
In recent years, players in RTDs have continuously engaged in active marketing campaigns, helping to attract more consumer attention to this category. Brands such as Rio and Horoyoi have significantly increased their brand visibility through strategies such as enlisting Chinese TV celebrities as ambassadors, organising offline brand pop-up events, and sponsoring entertainment activities for younger people of legal purchasing age. For example, Rio enlisted the highly popular actor Xiao Zhan as its global brand ambassador, helping to solidify the brand’s youthful image. Meanwhile, Horoyoi collaborated with the Chinese chained beauty specialist retailer HARMAY to host a pink-themed offline pop-up event for International Women’s Day in 2023, drawing considerable attention from young (adult) female consumers.
PROSPECTS AND OPPORTUNITIES
Rtds expected to maintain growth in the forecast period, with product innovation being a key growth driver
RTDs in China is expected to maintain dynamic total volume and current value growth rates throughout the forecast period. This is partly because sales in the category are still relatively low compared with many others in alcoholic drinks, making it an emerging category in China, with significant room for increased penetration. In addition, continuous investment by brands in product design is likely to yield ongoing returns. Currently, RTDs in the market stand out in terms of their packaging design and taste experience compared with other alcoholic drinks. Brands are continually innovating; for instance, Rio launched a seasonal Sakura-themed RTD, offering a sakura-flavoured product in pink packaging in the spring time. Besides, brands in RTDs are collaborating with video content creators to explore and promote various ways to enjoy RTDs, educating consumers and enhancing their drinking experience.
Live-streaming e-commerce has become an important channel of focus for brands in rtds
Content e-commerce platforms such as Douyin and Xiaohongshu have rapidly developed in the Chinese market, becoming important channels for consumers to purchase RTDs. At the end of the review period, RTD brands invested considerable effort in these channels. For instance, Horoyoi and Rio not only opened their own flagship stores on Douyin, but also collaborated with top live-streaming hosts, placing their products in the live streams of leading influencers. Sales of RTDs on Douyin typically involve selling in bulk, with boxes containing 8-12 bottles or more. To attract consumers on content e-commerce platforms, these brands often use promotions such as offering free gifts or other small items with their purchase of RTDs. Investment in content e-commerce platforms is not just an expansion of sales channels, but also a form of advertising. As the daily active users of content e-commerce platforms grow, brands of RTDs can more effectively reach consumers through short videos and other formats.