China’s imported spirits market took a significant hit in 2024, with brandy and whiskey imports plummeting due to high inventory levels and weakening consumer demand.
After years of rapid expansion, the sector is now grappling with a sharp correction, signaling shifting consumption patterns and economic uncertainty.
Brandy and Whiskey Imports Take a Heavy Hit
Trade data reveals that brandy imports fell 19.13% in volume and 29.55% in value compared to 2023. Whiskey imports also saw a significant decline, dropping 10.50% in volume and 22.79% in value. This downturn follows years of robust growth and reflects the cooling of a high-end spirits price bubble.
Despite the slump, brandy remains China’s leading imported spirit, with 35.03 million liters imported in 2024, valued at USD 1.23 billion. Whiskey follows as the second-largest category, with 29.19 million liters imported, totaling USD 451 million—just 36.58% of brandy’s import value.
Whiskey’s sharper drop in import value compared to volume indicates price reductions amid sluggish demand for premium bottles. Many importers had turned to whiskey as wine sales stagnated, but the economic downturn has now softened demand across the board.
The Inventory Crisis and Post-Pandemic Market Adjustments
The decline in spirits imports is largely attributed to excess inventory built up in response to the post-COVID market boom of 2022. Importers stocked up aggressively, expecting continued high demand, but by mid-2023, consumer interest weakened, leaving warehouses oversupplied.
A Cognac importer noted, “We saw a surge in demand after COVID, so we imported heavily. But by 2023, sales didn’t keep up, leaving us struggling to clear stocks.”
The price adjustments seen in whiskey imports further confirm this inventory-driven correction. Many distributors are now discounting high-end bottles to move stock, contributing to the sharper drop in value versus volume.
France and Scotland Maintain Market Dominance
France continues to be China’s primary brandy supplier, accounting for 99.21% of total imports in 2024. Leading Cognac brands such as Hennessy, Remy Martin, and Martell remain at the forefront of the market.
For whiskey, Scotland remains the dominant supplier, while Japanese and American whiskeys hold a minor share—together making up just 15% of the UK’s total whiskey import value. Imports from all three countries declined in 2024, underscoring the broader market contraction.
Liqueurs, Rum, and Tequila Show Mixed Performance
Beyond brandy and whiskey, liqueur imports saw a milder decline, with volume down 3.76% and value falling 6.65%. South Korea emerged as a bright spot, with import values rising 3.85% to USD 28.32 million, thanks to the sustained popularity of fruit-flavored soju.
In contrast, German liqueur imports, including Jägermeister, plummeted 41.74% in value to USD 13.74 million, reflecting changing preferences in the segment.
Rum and tequila showed varied results, depending on importer strategies and brand positioning. Their growth remains niche, with demand influenced by marketing campaigns and shifting consumer tastes.
What Lies Ahead for China’s Spirits Market?
The downturn in spirits imports underscores a shifting consumer landscape, where economic concerns and evolving tastes are reshaping demand. Looking forward, brandy could face further challenges in 2025 if China implements anti-dumping tariffs, potentially driving up prices and further reducing import volumes.
For importers, balancing inventory with demand will be key, as market conditions remain fluid. The sector may also see more aggressive discounting strategies as companies seek to clear stock and adapt to the new economic reality.
Source: Vino-Joy