IWSR released the latest report to analyze the current situation of alcohol e-commerce and differences in consumer behavior in the Asia-Pacific region.

Although e-commerce has become a growing channel for alcohol sales, its importance has become more and more obvious, driven by the epidemic. Recently, IWSR, an international wine and spirits research organization, released the latest report, analyzing the current situation of wine e-commerce and the differences in consumer behavior in the Asia-Pacific region.

 

China’s liquor e-commerce market

 

Compared with other markets around the world, the alcohol e-commerce sector in the Asia-Pacific region is relatively mature, and the alcohol e-commerce industry in the Asia-Pacific region is mainly led by China. China is the world’s largest online alcohol sales market. In the past three years, driven by the middle class, China’s alcohol e-commerce has grown steadily at a rate of 10%-20% per year.

Since the start of the pandemic, consumers around the world have started buying alcohol online. However, China’s online alcohol market is growing more slowly than other markets due to the existing high penetration rate.

From 2019 to 2020, the value of alcohol e-commerce in China has grown by about 20%, according to IWSR. In contrast, the value of alcohol e-commerce in the much less developed U.S. grew by about 80% between 2019 and 2020. IWSR predicts that the value of the U.S. alcohol e-commerce channel will surpass that of China by the end of 2021.

IWSR survey data shows that China’s online consumer base is more mature than other markets. In China, only 10% of alcohol consumers have only started shopping online since 2020, while 46% have done so since 2017 or earlier.

The Chinese market’s reliance on ready-to-drink channels and baijiu also limited growth. Liquor is the dominant spirits category in China, but online penetration is relatively low, with less than 5% of online sales for the category, according to data.

Nonetheless, the value of China’s online alcoholic beverage market is expected to be temporarily boosted by the impact of the epidemic and will continue to grow steadily until 2024.

In the long run, although leading trading platforms such as JD.com and Tmall dominate the wine e-commerce sector, the investment of these e-commerce giants in “new retail” is driving the development of the current smaller omni-channel market segment.

Sarah Campbell, research director at IWSR, said: “China will remain an important market for online alcohol sales, even if growth is not as strong as in the US. While platforms such as JD.com and Tmall will still dominate, brand owners should pay close attention.’ The development of new retail’ stores because they have the backing of certain e-commerce giants behind them.”

 

Other markets in Asia Pacific

 

Japan’s online consumer base is also very mature, and many consumers were accustomed to buying alcohol online before the epidemic. That figure stands at 85%, with 64% saying they started shopping online liquor store hong kong in 2017 or earlier, according to IWSR.

However, the penetration rate of online sales in Japan is less than 5% of total sales, which means there is still room for further growth.

The number of new online alcohol consumers in Australia has increased significantly compared to China and Japan, with 29 per cent saying they have only started buying alcohol online in 2020.

In addition, IWSR has identified 10 “markets to watch” based on projected growth rates. Among them, alcohol e-commerce in the Philippines and Singapore has experienced significant growth during 2019-2020 and is seen by IWSR as a growth opportunity for alcohol e-commerce in the Asia-Pacific region.

Online channels in the Philippines place a strong emphasis on high-end products, as online liquor store hong kong shopping is most easily embraced by wealthy urbanites who have easy access to the Internet, live within delivery range, and are willing to pay for greater convenience and products.

Singapore, like Nigeria and Mexico, has a premium-oriented e-commerce spirits market, although wine is the dominant e-commerce category for alcohol in Singapore. This is mainly due to the incentives of its government-related tax policies.

Guy Wolfe, Strategic Insights Manager at IWSR, said: “There are huge differences in the maturity of wine e-commerce in the Asia Pacific region, and each country requires a different market strategy. The epidemic has boosted the market across the region to varying degrees, and the future of wine, Spirits and beer brands present opportunities.”