"Huaxia Wine News" reporter Liu Xuexia
Another beverage giant has crossed over to start a beverage business. On January 15, Dongpeng Beverage, a leading functional drink company, launched a new product "VIVI Cocktail" on its official public account, which attracted widespread attention from inside and outside the industry.
In the video released by the official account, this canned cocktail product has an alcohol content of 8 degrees, three flavors: white peach, citrus and green grapes, and the suggested retail price is 9 yuan per can (500ml).
For Dongpeng, it was a little late to intervene in the low-alcohol wine track, but it was not absent after all. Prior to that, Coca-Cola, Pepsi, Wahaha, Wanglaoji and other beverage companies have launched low-alcohol products.
In recent years, the field of low-alcohol liquor has been booming, and has experienced market expansion, capital entry, and a large influx of brands, especially driven by the "slightly drunk economy" and the demand of young people, more and more brands have begun to enter the low-alcohol liquor market, and the market space has gradually opened. To a certain extent, as a new consumer representative category of the alcohol sector, low-alcohol wine was once no less attractive to investors than the soy sauce wine category.
In 2025, the market size of low-alcohol wine will reach 74.2 billion
In recent years, as consumers' demand for liquor products tends to be diversified and personalized, the concept of healthy and rational consumption has gradually formed, especially the demand for low-alcohol liquor, which has shown a rapid growth trend in recent years.
In fact, low-alcohol baijiu has been around since the moment baijiu was born. The data show that from 1975 to 1980, the output of low-alcohol liquor accounted for less than 1% of the whole industry, by 1980-1985, the output had reached 20% of the whole industry, by 1980-1990, the liquor below 50 degrees accounted for more than 50% of the total output, and since 2000, it has accounted for more than 90%.
According to the "2022 Low-alcohol Trending Beverage Trend Report", the market size of low-alcohol alcohol is expected to reach 74.26 billion yuan in 2025, with a compound annual growth rate of 30% from 2021 to 2025.
With the increasing market share of low-alcohol liquor, low-alcohol liquor is considered to be one of the inevitable trends in the development of Chinese liquor. During the Shanghai Wine Expo in October 2023, Song Shuyu, chairman of the China Liquor Industry Association, said that rational and healthy drinking attitudes and drinking behaviors determine the choice of consumers in the future.
In addition, the support of policies has made the development of low-alcohol wine more rapid. In 2022, the Ministry of Industry and Information Technology solicited opinions on the "Guiding Opinions on Accelerating the Construction of a Modern Light Industry System (Draft for Comments)". It is mentioned that in terms of upgrading and innovating product manufacturing engineering, we will develop diversified, fashionable, personalized and low-degree liquor products for young consumer groups and foreign consumer groups.
From this point, it can also be seen that the state has pointed out the direction for the future development of the liquor market. The provision of low-alcohol, young and fashionable liquor products has gradually become a consensus among enterprises, and now many companies are looking at the development opportunities of the low-alcohol liquor market.
Low-grade ≠ low-quality
However, in the process of the development of low-alcohol liquor, there are still some problems in consumer popularization, and the inherent impression of "low alcohol = low quality" still exists. Some consumers believe that low-alcohol liquor is the result of high liquor blending, and there are doubts about the taste and quality of low-alcohol liquor.
In Song Shuyu's view, re-understanding low-alcohol liquor is of great practical significance for the further development of low-alcohol liquor. First of all, the degree of liquor should be in line with international spirits, most of the internationally popular liquor content is below 43 degrees, and famous liquor companies should go out, and the behavior of reducing alcohol should be the key to truly integrating with the international market. In addition, there are misunderstandings among consumers about the understanding of low-alcohol liquor. Many consumers say no, which negates the quality of all low-alcohol liquor, so it is necessary to let consumers understand that high-quality low-alcohol liquor must be at a good price, and it is a scarce product in famous liquor.
Zeng Congqin, Secretary of the Party Committee and Chairman of Wuliangye Group (Co., Ltd.), proposed to break the misunderstanding of liquor degree, give full play to the comparative advantages of the innate genes, exquisite craftsmanship and market foundation of strong aroma liquor in the production of high-quality and low-alcohol liquor, jointly break through the key technical difficulties, continue to improve the unique value and quality of strong aroma liquor "low but not light, low but not mixed, low but not turbid", strengthen the cultivation of young consumers and international market development, and strive to tell the low content story of strong aroma liquor.
Therefore, the current low-degree liquor is a low-degree liquor on the basis of a higher technical level and an updated consumer experience, not a low-degree liquor in the general sense. It is worth mentioning that with the acceleration of scientific research, the relevant technology has gradually matured, and in the future, the technology of directly reducing the alcohol content without adding water will become a reality.
Many players have entered the game, and the low-alcohol wine market is "contending"
With the increasing market share of low-alcohol liquor, "downgrading" has also become one of the inevitable trends in the future development of the mainland liquor industry.
In fact, traditional liquor companies including Moutai, Fenjiu, Luzhou Laojiao, and Gujing Gongjiu have long been involved in this field. For example, Moutai has launched "Youmi" blueberry liquor to stimulate the female consumer market, Fenjiu has launched low-alcohol liquor such as "Bamboo Leaf Qinglu Liquor" and "Rose Fenjiu", Luzhou Laojiao has successively launched fruit wine brands such as "Qingyu" and "Huajian Wine", and Gujing Gongjiu has set up Anhui Baiwei Lujiu Co., Ltd. to target the pre-blended liquor market.
According to the "Research Report on the Development Trend Analysis and Investment Prospects of China's Low-alcohol Wine Industry (2023-2030)" released by Guanyan Report Network, in addition to established wine companies, the industry has also poured into many emerging brands, such as Lanzhou, Meijian, Berry Sweetheart, etc. Unlike famous and high-quality liquor companies that reduce alcohol content through cross-border comparison, many emerging low-alcohol liquor brands have their own youthful and Internet celebrity labels, which have won the favor of capital.
According to the analysis of industry insiders, at present, low-alcohol liquor is in the competitive situation of "hundreds of schools of thought", and has not yet formed a head brand with absolute advantages, and new brands are emerging one after another.
In addition to attracting brands to go forward and succeed, it has also attracted an influx of capital. According to relevant data, in 2020, there will be more than 20 financings in the low-alcohol wine track. Since then, it has peaked in 2021, with a total of about 56 cases and a total investment of about 2.5 billion yuan. In 2022, there was a slight decrease, but there were still dozens of cases. Since 2023, the category of low-alcohol wine has seen a revival. With the relaxation of epidemic prevention measures and the resumption of social and gatherings, people can once again enjoy the fun of offline dinners, making the "drunk" drinking culture once again sought after.
According to the relevant statistics of Tianyancha, at present, there are about 76,000 low-alcohol wine-related enterprises in the mainland, of which more than 9,000 new registrations will be the fastest growing in 2020, and a total of 620 will be registered in 2022, and the pace of rapid market expansion is gradually slowing down. It can be seen that the low-alcohol wine industry has experienced a round of heat and has now entered a stage of stable growth.
How does low-alcohol alcohol appeal to young people?
With the rise of the new generation of consumers, their distinctive personality and diversified needs have also made the consumption scene of alcohol products continue to change. The emergence of low-alcohol liquor better caters to new consumer needs. On the one hand, young consumers' concept of healthy and rational drinking is more prominent, and on the other hand, the irritation of low-alcohol liquor is relatively less and more acceptable.
In addition, according to the "White Paper on Alco-pop Category Culture of Chinese Young People's Low-tide Drinking", this generation of young people drinks a lifestyle and feelings. Low-alcohol liquor products are not only more pleasing to young people in terms of taste, but also not easy to get drunk, and can make people enjoy a slightly drunk feeling. It can be said that compared with traditional alcohol, low-alcohol alcohol seems to be better at "grasping" young people's emotions. Those tipsy social wines that conform to social culture and meet social needs, as well as high-quality home solo wines, will show great development prospects.
Although young consumers prefer low-alcohol liquor, there are many types of low-alcohol liquor on the market, and how to make them choose more liquor may require companies to formulate feasible solutions for young consumer groups.
Industry insiders believe that low-alcohol liquor needs to be improved from the basic quality and taste, and at the same time, it is also necessary to create new consumption scenarios for young people to help them better establish the habit of choosing low-alcohol liquor.
In addition, the marketing model of low-alcohol liquor and liquor is very different, including the product taking the road of fashion and national tide, and the channel is more focused on "short channel", therefore, its marketing should be aimed at young consumers, and more pursue personalization, culture and popularity, from this point of view, the market is also better to cut.