Hello and welcome to Diageo's Greater China President's Call. For those of you who don't know me, my name is Sam Fisher and I'm the President of Asia Pacific for Diageo. I also have responsibility for Diageo's travel retail business. However, the focus for today's presentation is Diageo's business in Greater China. China is an exciting market with fantastic growth potential.
Today, I'll share my view on the market opportunities and outline our key strategic initiatives. Greater China has been a strategically important market for Diageo for more than a decade and it is becoming a much more significant component of the Diageo GEO Group. Over the last 5 years, it has increased from 2% of Diageo's net sales to now 5%. However, we're still only at the beginning of a very exciting journey in China. It is a very attractive and profitable growth engine for Diageo and I see this business growing to be 10% of Diageo's sales over time.
Diageo has 2 distinct businesses in Greater China. The first is Shui Jing Fang, our Baijiu business and we remain the only international spirits company to own a Baijiu business in China. The second is our international spirits and beer business that spans across Mainland China, Taiwan, Hong Kong and Macau. While the main focus of our international spirits business is scotch, we also have other businesses in brands such as Baileys and Guinness. Together, Baijiu and Scotch make up over 80% of our business in China, and I'm going to focus today's presentation on these two categories.
Greater China is the world's largest total beverage alcohol market. Excluding low and value price tiers where we choose not to participate, the size of the market in China is $224,000,000,000 This is almost 40% bigger than the next biggest market, the U. S, which is $162,000,000,000 on an equivalent basis. In recent years, growth rates in both TBA and international spirits in Greater China have been ahead of global rates. You can see from the chart on the right that a large part, approximately 70% of the TBA market is Baidu.
Although International Spirits is just 3% share of TBA sales, the category is growing fast and there's lots to go after. In the near term, we're encouraged by the pace of the economic recovery in China in the wake of COVID-nineteen. In the Q4 of 2020, China was the 1st economy to return to its pre pandemic growth rate outlook. Longer term, the fundamentals are strong and consumer spend has been driven by positive macro trends, which are expected to continue through the current global volatility. Premiumization is a global trend and we're strongly positioned in Greater China just as we are in many other markets.
Globally, China has the largest and fastest growing super premium and above price segment. It makes up $81,000,000,000 of the retail sales value in China compared to $18,000,000,000 in the United States, so nearly 4 times the size. Already a premium market, nearly all of the market growth since 2015 has come from premium plus price of Tiers. The size of the super premium and above price segment is forecast to increase its share of the TBA market by 5 percentage points over the next 5 years. A number of fundamental consumer trends are driving market growth and premiumization and we expect these to continue.
Consumption occasions are growing as the increasing social and economic power of women has led to a rise in the number of mixed of Gender and Female Only Occasions. Consumers are increasingly exhibiting an appreciation of craft and quality and are more discerning versus previous generations who were more overt in displaying their status. Living a healthier lifestyle holds the top of Priority for Affluent Chinese Consumers in 2020, with millennials placing more emphasis on it than their parents' generation. There is also strong demand for China specific and China characterized products with greater ties to culture. We expect the demand for these products to grow even faster under the dual circulation policy as the government places greater focus on Increasing Domestic Consumption.
The new generation of Chinese millennials estimated to be around 400,000,000 are well educated, often with international exposure through travel or study abroad. They have a high level of disposable income and I'm willing to try new brands and products. An increase in urbanization as younger legal drinking age cohorts moved to cities to find work will lead to continued growth of the modern on trade and the rise of low tempo with food bistro occasions. This will support the growth of international spirits, which currently over indexes in these occasions. China is the world's largest e commerce market by far with double digit growth over the last 3 years.
COVID has accelerated the importance of e commerce and there has been a clear shift in consumer purchase behavior. In a recent IWSR study, nearly half of respondents reported buying more alcoholic drinks online than they did here. With favorable demographics, strong premiumization and consumer trends, we remain excited about the medium and long term opportunities of Industry Growth, which will benefit our business. Baiju is the largest spirits category in the world, reaching $157,000,000,000 in 2019. As the national drink in China, it is typically consumed with food and at large Social Gatherings and Banquets.
Post the anti extravagance regulations in 2013, the category recovered to grow at a compound annual growth rate of 17% between 2015 2019. Xuexing Fang primarily participates in the super and ultra premium price tier through its 2 core products, Worldpay and Number8. This price tier has grown at a CAGR of 19% in the last 4 years. The category has also rebounded quickly post COVID-nineteen and returned to previous dynamics and trends. Due to the strong premiumization trends in Baidu and the fact that over half of the value of the market is still in the premium and below segments, We expect the super premium and above price tiers to continue to be the fastest growing segment, thus creating an exciting runway for Moving now to look at the whiskey market in China.
You can see that in the last few years, whiskey has been growing fast and Scotch continues to be the largest component within the category. As status cues are changing, becoming less About what you show and more about what you know, we are seeing increasing interest in the Scotch category. This reflects Scotch has rich heritage, craft and traditions, and we expect growth to accelerate. Scotch malts have grown at a CAGR of 26% in the past 3 years and have been the growth engine for the scotch category. While the blended Scotch category in China has seen modest growth.
Our brands have been performing strongly. Led by Blue Label, our Johnnie Walker business grew at a CAGR of 26% in the 3 years to fiscal 2019, significantly ahead of the category growth for blended scotch. Our ambition is to be the best performing, most trusted and respected international alcohol company in Greater China. The execution of our strategy is based on 3 core pillars. We will continue to premiumize in the Baidu category.
We will win with whisky by continuing to build powerful brands in super and ultra premium plus scotch And we will hold our winning positions in Taiwan and we will gain share of international super premium beer. Underpinning our strategy are a number of enablers, which will support our participation choices. We are ensuring that we are a fit for purpose organization with best in class capabilities and tools and data that enable us to employ consumer insights that unlocked new growth opportunities. Our business has strong foundations and has been resilient through the pandemic We will continue to invest ahead, accelerate growth and grow share of TBA. As you can see, our strategy is working.
Our business in Greater China has grown significantly over the last 5 years at a CAGR of 15%. While COVID-nineteen had a significant impact on our performance in fiscal 2020, we have seen a strong recovery in the most recent 6 month period. We are very confident in our ability to drive strong growth in China. This strategy And our unique positioning in both Baidu and International Spirits has driven growth ahead of our key competitor in recent years. As the only international spirits company with a Baiju brand, we have a unique opportunity to play in the world's largest TBA category.
Xuexing Fang is a beautiful niche brand with a legacy that traces back more than 600 years. It ranks 11th in revenue amongst listed Baidu Companies and has been gaining share. The 28 provinces where Shui Jingfeng has distribution cover more than 98% of Baiji consumption in China. We have expanded its geographical focus, distribution and route to consumer, establishing Xuexing Fang as a national brand with a presence in over 30,000 outlets. While Xuexin Feng's growth was significantly impacted by COVID-nineteen, The business rebounded strongly in the second half of calendar year twenty twenty.
It is a fast growing business with a lot of potential and benefits from a strong management team and support from Diageo as a majority shareholder. Sohu Xing Fang has an ambition to grow significantly ahead of the Baidu category and win market share by focusing on 4 key growth drivers. First, winning share in the top tier core stores through strong sales execution, including international spirit style execution standards and Customer Relationships. Higher volume per outlet also reflects the stronger brand equity in core provinces. It is now focused on winning share in 8 key markets through a broad range of marketing activations.
Banqueting contributes to more than 1 third of super and ultra premium Baidu occasions. Having been significantly impacted by COVID-nineteen, These occasions have gradually returned to become a key battleground for Baiju brands in these price tiers. Suaijin Fund has doubled down investment in the occasion and has been winning share through strong customer partnerships and agility in execution. Growth will also be driven by innovation, adding new variants and driving premiumization. Ahead of Chinese New Year, Xueqing Fan launched 1 leader gifting packs with graphics of lucky icons in Chinese culture, the Dragon and the Phoenix.
It has also used innovation to enable its participation in the ultra premium price tier through variants such as New Classic and Forest Green. Corporate purchase is another key super premium and ultra premium occasion. In China, most corporates have had a good entertainment and gifting budget this year. So unlocking the corporate purchase opportunity creates Significant commercial value as well as a platform to effectively reach the right target groups. Moving now to talk about the opportunity in international spirits.
You can see from this slide that the penetration of the international spirits is still relatively low, estimated to be only around 3% nationally. However, our studies of the show that penetration can be up to low double digits in major cities like Shanghai and Guangzhou. A 2020 Kantar study on usage and attitudes among 21 to 50 year old spirits and wine drinkers showed the penetration rate of whisky is now higher than cognac in 5 major cities. The growth in e commerce is helping to drive whisky penetration. Tmall National Shopper Purchase Data shows that the number of whiskey purchases in 2020 was significantly ahead of cognac and was growing faster.
While e commerce is still skewed to the major cities in the East and the South, it is a critical channel for reaching other geographies and we can expect this momentum to continue. The room to grow penetration in international spirits And the momentum within the whiskey category creates an exciting opportunity for our business. Our focus in Mainland China is on building the Super Deluxe and above Scotch Whisky category. We have a proven strategy to grow our whisky business, focusing on 3 key areas. Building consumers' knowledge of the scotch category and our brands is the foundation of building our whiskey business and route to market in China.
We are educating the consumer, reframing category perceptions and creating a buzz around whisky. Since 2017, we have built 52 whisky spaces in partnership with key customers in Tier 1 and Tier 2 cities. In addition, we've executed 13 whiskey summits to showcase the strength of our Scotch portfolio. There are now over 600 single malt bars in China with strong year over year growth. We have educated more than 15,000 customers, bartenders and Consumers over the past 3 years through our Diageo Wistia Academy and are now taking it into the digital Through these forums, we are educating our customers and consumers about the quality, provenance and craft that differentiates whisky and our Scotch products from other international spirits.
These steps have helped us position Scotch as a genuine discernment category. We are investing to build whiskey power brands led by Johnnie Walker Blue and The Singleton. Through luxury brand mentoring, Gifting Programs and Disruptive Brand Events, Johnnie Walker Blue Label grew at a CAGR of 51% in the 3 years to fiscal 2019. The images that you can see here showcase our exciting new depth of blue campaign. We partnered with local influencer and renowned photographer and artist, Chen Man, to infuse the brand in local culture.
We are also collaborating with local chefs who bring the depth and layered taste of Blue Label alive with amazing food pairings that are rooted in local culture. Within malts, The Singleton offers us a significant growth opportunity with its great liquid and unique and appealing package. The Singleton's taste profile was specially crafted to be preferable for the Chinese drinking palate. It is replicating the success among Chinese consumers that we have seen in the Taiwanese market and has one of the highest trial to conversion rates in the category. We are building the Singleton in a number of ways, including high end mentoring and experiential events, gifting platforms and Banqueting and Chinese Meal Initiatives.
All of these are strongly infused with PR and digital amplification. The Singleton is now the fastest growing major single malt brand in China and our ambition is to be the number one single malt brand in this critical market. Innovation plays a critical role in delivering our ambition in China. Chinese consumers have unique tastes and needs and there is great demand for products that have ties to local cultural elements. We have been leading in this space across many of our brands and our recent innovations are built on local Chinese insights.
This slide shows some examples of our China for China innovations. The special edition Johnnie Walker Blue Forbidden City anniversary bottle celebrates both the 600 year anniversary of the Forbidden City and the 200th year anniversary of Johnnie Walker Blue and it's sold out fast. We have launched the Singleton 21 year old and 25 Year Old Mid Autumn Festival and Chinese New Year Pack. The Chinese New Year Pack created in collaboration with a modern calligraphy artist, denotes the 5 elements of good luck and fortune, symbolizing the regeneration of your luck for a fresh start in the New Year. We also launched our Johnnie Walker 15 Year Old Sherry, a sweet and smooth tasting blended malt whiskey and the singleton 53 year old, which is Diageo's oldest ever aged Single Malt.
At over £20,000 a bottle, all stock of the Singleton 53 year old sold out on preorders, demonstrating the strong demand for premium and unique innovations in this market. Greater China is world leading in digital capabilities and innovation. And end to end digital excellence is critical in such a highly digitized and evolving market. We are expanding our e commerce capability and execution to capture of this increasingly important channel. We routinely digitize our marketing initiatives to drive scale and efficiency.
A good example of where we have done this with great success is with our Diageo Whiskey Academy. Having made courses available online, 30% of our new recruits were virtual participants in the first half of fiscal twenty twenty one. We have also digitized Our core store program, giving our commercial team the means to virtually engage with over 300 core liquor stores nationwide. Through expansion into platforms like Tmall and Pinduoduo, we are strengthening our business to consumer position in e commerce And our investment and focus behind the e commerce channel is delivering results. We have grown market share faster than our peers.
Our recently launched digital CRM tools allow us to communicate directly with consumers, improving the quality of consumer insights and enhancing the quality of our decision making. Our exclusive customer partnership with Tmall gives us access to rich consumer data so that we can execute targeted recruitment. Currently, East, Southeast and South China make up around 90% of the international spirits value pool. The Guangdong and Fujian provinces that make up South China represent more than 70% of that value pool. For this reason, the South is the core battleground for our Super Deluxe Whiskey and we have strong coverage in all 30 cities in the South.
The East region with its vibrant on trade culture has been a trend leading hub for international spirits. This year, we expanded our presence to all key Tier 1 and Tier 2 cities in the East region, doubling our distribution. We have also been broadening our coverage within channels, primarily upgrading our presence in On Trade Channels in the South. We have increased the number of our core store partners by 40% and established dedicated reserve teams to partner with the top high end outlets. We continue to recruit Tier 1 and Tier 2 wholesalers and our efforts to date have expanded wholesaler coverage by more than 30%.
In addition to the 3 core territories, We are also building stronger route to market muscle in North China, West China and Central China. International Spirits penetration in these territories may be small now, but the headroom for growth is big given the population and size of the economy. In addition to these opportunities is Hainan, China's offshore duty free island. It has recently increased the permitted spending level and now includes liquor, providing another driver for Luxury Spirits of Growth. Chinese consumers are the biggest luxury goods spenders globally and represent 40% of sales across all travel retail categories.
The runway for growth is strong with passengers projected to grow almost 4 times over the next 5 years and Diageo will be well positioned to meet this consumer need. Doing business in the right way is embedded in Diageo's strategy and is a core part of our performance ambition. Diageo recently launched our highly ambitious 10 year sustainability action plan for the decade to 2,030, which focuses on positive drinking, inclusion and diversity and grain to glass sustainability. Diageo China was the 1st company to promote responsible drinking in China. We played an instrumental role of positive drinking culture by advocating for the adoption of a universal market code of conduct, founding the China Social Aspects Organization under the China Alcoholic Drinks Association and the Foreign Spirit Producers Association to support the reduction in alcohol related harm.
We are looking to partner with organizations like jd.com to reach millions of Chinese consumers with messages of moderation and responsible consumption. We will provide business and hospitality skills through our Learning for Life program. 50% of the training recipients will be female or from underrepresented groups, increasing employability and improving their livelihoods. We will bring best practice sustainability from grain to glass, focusing initially on increasing efficiencies in our supply chain and contributing towards our global goal to ensure that the business is using 100% recycled content in plastic packaging and that 100 percent of Diageo's packaging will be widely recyclable by 2,030. So in summary, Greater China is an attractive market for Diageo as consumer trends of increased consumption occasions, growing penetration and premiumization provide a huge runway for growth.
We are the only international spirits player with a presence in Baijiu, International Spirits and beer. Our strategy has been working, and we have a clear roadmap to drive sustainable long term growth with attractive margins. I'm confident that we have the team of people inside Diageo China and Xueqing Fund that have the commitment, the talent and the energy to deliver Sustainable and Profitable Growth for Diageo. Thank you.