Chinese develop their taste for scotch whisky

By WANG MINGJIE in London | China Daily | Updated: 2022-04-15 09:18
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Demand rising, especially among younger generation

Chinese consumers' evolving taste for high-end spirits pushed their spending on Scotch whisky to a record high over the past two years despite disruption to the trade caused by the COVID-19 pandemic.

Latest figures from the Scotch Whisky Association show that since 2019, the Chinese mainland has recorded the strongest growth for whisky produced in Scotland, with the total value of this market last year reaching 198 million pounds ($258 million), a rise of 123 percent compared with two years ago.

Global exports of Scotch grew to 4.51 billion pounds last year, with the mainland one of the key emerging markets contributing to such growth, which rose by nearly 85 percent in 2021 alone, making it the fifth-largest export market by value, according to the association.

Graeme Littlejohn, the association's director of strategy and communications, said, "Some markets, such as China, have gone against the grain and demonstrated strong growth in spite of COVID-19.

"In recent years, China has seen a shift toward premium products, with Scotch whisky among them. Single malt Scotch now makes up over 60 percent of exports to this market, which may explain the strong growth seen during the pandemic."

John McDonough, chief executive of Speyside Distillery, said he believes the main reasons for the growth of Scotch whisky exports to China are primarily the increased education, awareness and appreciation of single malts from Scotland.

Spey, the distillery's single malt brand, has experienced strong growth in the past 18 months. The company operates mainly in Xiamen, a port in Fujian province, to take advantage of the trend for whisky there and its proximity to Taiwan, where there is also strong demand.

McDonough said the recent success of single malt in Taiwan is influencing mainland consumers, along with global demand for this type of whisky.

"A growing number of consumers in China are making discerning choices involving a wide range of consumer goods-with top quality being the driving force. Scotch whisky is benefiting from this growing trend," he added.

Every second last year, 44 bottles of Scotch were shipped from Scotland to some 180 markets worldwide.

Sohail Shaikh, minister counsellor at the United Kingdom Department for International Trade in Shanghai, said, "There is no better testament to the quality and popularity of the world's No. 1 internationally traded spirit.

"Chinese consumers recognize quality. As the economy grows, so does consumers' desire to explore the higher end of the whisky market."

Shaikh added that there has also been a shift in what used to be perceived as a male-dominated drink, with many more women now enjoying whisky.

In 2020, Chinese consumers spent more than $2.4 billion on spirits with international status-those that retail for $100 or more per bottle-in the domestic duty paid channel and the new duty-free enclave of Hainan province, according to IWSR, a leading source of data and analysis on the global alcoholic beverages market.

Thorsten Hartmann, custom analytics director at IWSR Drinks Market Analysis, said, "China was one of the few countries where spirits with international status had a relatively good year in 2020."

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