INTERNATIONAL. Online alcohol sales are growing at about +15% a year in China, according to new research by IWSR.
The results from the alcohol beverage market analyst’s IWSR Ecommerce Study: A strategic roadmap for alcoholic beverages, also show China to be the world’s largest online alcohol market. Sales of US$6.1 billion make it about four times the size of the second-placed USA.
However, France and the UK – which were third and fourth in terms of market size amongst the ten major countries reported on in the first part of the study – were found to be the most mature markets, taking the highest percentage of off-trade sales derived from e-commerce activity.
The IWSR study shows that the Chinese online beverage alcohol market is concentrated, with the leading players, Tmall and JD, sharing over 70% of the market.
In the US online sales represent just 1% of off-premise beverage alcohol sales, but they are growing at double-digit rates. IWSR said that this is due to increased consumer demand and state and federal level restrictions on alcohol distribution out-of-state being eased slightly.
France’s online share of its off-premise alcohol sales is the highest at nearly 9%, according to ISWR’s research. This is partly driven, the analyst noted, by a thriving online wine sector, with over 400 specialist e-commerce sites.
In the UK, IWSR said that alcohol sales through online grocery shopping and specialist wine retailers such as Majestic and The Wine Society, which have fast-growing online operations, are accelerating growth.
The IWSR research shows Jack Daniel’s to be the number one among online beverage alcohol brands, and Heineken was named as the market’s leading beer brand.
IWSR’s study also shows that the frequency of online alcohol purchasing is low in most markets, with only China and the UK having more than 50% of consumers purchasing at least monthly or more. The analyst said that the primary motivating factor across most markets is convenience, ahead of price.
The study reveals that Amazon has quickly filled the gap in markets where there has been little impetus from existing retailers to move into e-commerce. In Germany, Amazon already has more than a 50% share and is making gains in other major markets including Japan, the UK, Spain and Italy. Premium products such as spirits and wine are a core focus for Amazon, which has dedicated category management teams staffed by ex-retailers, IWSR noted.
Wine is the major alcoholic beverage category sold online, typically with a 60% to 70% share of online beverage alcohol sales across the ten countries studied.
The IWSR research shows Jack Daniel’s to be the number one among online beverage alcohol brands, and Heineken was named as the market’s leading beer brand.
Analysing the ten markets studied, IWSR said that expected growth rates between 2017 and 2020 vary from 9% to 10% per annum in the more established markets of the UK and France, to 20% to 40% per annum in the newer, less-developed e-commerce markets.
