China's booming whisky market set to outpace global growth by five times

China’s whisky market is booming, with reports expecting growth to outpace the global average by five times, as the number of young, middle-class consumers rises.

Data from the Scotch Whisky Association shows that China’s whisky market was valued at nearly £1 billion (HK$10 billion) in 2023. The size was projected to grow by 88 percent between 2023 and 2026 – five times faster than the global market, the association said, highlighting the market’s immense potential.

Its prediction was echoed by market research firm Euromonitor International which estimated that whisky sales in China would nearly triple in 2027 from around US$2.3 billion (HK$17.94 billion) in 2022, primarily driven by younger consumers, the middle class, educated urban dwellers, and an increasing number of female drinkers.

An increasing number of brewers also saw the opportunity and wanted a share of the pie. 

Shanghai Bacchus Liquor – originally focused on cocktails under brands including Rio – entered the spirits market in 2016 and established a distillery in Qionglai, Chengdu, in 2017. 

Qionglai is a major hub for China’s liquor industry, home to over 540 producers and distributors, and recognized as the “Hometown of Chinese Baijiu.” The region has recently expanded into whisky production as part of an industrial upgrade supported by the local government. 

Bacchus has invested a total of 4 billion yuan (HK$4.28 billion) in its Qionglai facilities. Last year, a limited-edition whisky priced at 399 yuan per bottle it produced sold out all 2,500 bottles available within the first day of release, with resellers driving up prices in the secondary market, mainland media reported.

Another domestic brand, Pandabrew, a craft beer brewery, has also entered the whisky market. Founder and chairman Xia Yulin noted that Japanese whisky commands higher prices than Western brands and aims to learn from Japan’s whisky-making expertise, according to Nikkei. 

The company plans to blend and mature its whisky for three to five years before release. 

Xia acknowledged that whisky production is more challenging than brewing beer but sees enormous market potential.

International liquor giants have also set their sights on China. Britain's Diageo, the company behind Baileys, Hennessy, and Moët & Chandon, has established a distillery in Yunnan province. 

Meanwhile, some UK distillers are now producing whisky in China for export back to Britain.

STAFF REPORTER