Of the world’s largest alcohol ecommerce markets, the only one in which ecommerce alcohol shopping frequency continues to reach new heights is China. The development of the D2C and on-demand channels have been key here, while the removal of Covid restrictions in late 2022 further boosted online sales.
Growth has also been driven by China’s online buyer market penetration: more than half (53%) of all alcohol buyers shop online – almost double the incidence seen in any other major market. Additionally, IWSR data shows that 83% of non-users of the channel surveyed in 2023 said they were somewhat or very likely to buy alcohol online in the future, up from 71% in 2022.
Compare this with the US, where the online buyer penetration is only 14%. Interestingly though, the US remains the second most valuable ecommerce market, and will continue to deliver some of the most growth globally, although at a lowered level due to a weak macro-economic environment and normalising consumer behaviours.
What, then, keeps China’s ecommerce channel growing at such a high rate?
Online alcohol sales in the country expanded at a value CAGR of +16% between 2018 and 2022, building a 39% share of global ecommerce sales; IWSR forecasts a 2022-27 CAGR of +6%, increasing the global share figure to 40%.
China’s forecast absolute value growth is well above that of any other market. This is partly due to consumers’ ongoing enthusiasm for the channel, which was not simply a Covid-induced anomaly as in some countries. In addition, ecommerce momentum is being sustained by considerable retailer innovation.
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