Baijiu is the generic Chinese term for white alcohol made from sorghum or rice. Baijiu has been gaining popularity due to its healing benefits and use in Chinese traditional medicine. The rising income levels and increasing socializations have led to the adoption of premium brands of Baijiu which are aged for long durations and have smoother taste.
The global Baijiu Market is estimated to be valued at US$ 100.96 Bn in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for premium Baijiu which is aged for long durations of 5 to 15 years are seeing increasing demand owing to rising nightlife culture and lavish events in China. The premium brands are commanding higher price points compared to mass marketed Baijiu due to perception of quality associated with long aging process and branding. The key players are focusing on expanding premium brand portfolio and overseas markets to tap into the growing demand.
SWOT Analysis
Strength: Baijiu is deeply ingrained in Chinese culture and has a long history and tradition. It enjoys strong brand loyalty among consumers in China.
Weakness: Baijiu has a strong aroma and taste that some consumers find too intense. It has limited appeal outside of China.
Opportunity: China’s rising middle class presents an opportunity to attract new and younger consumers to Baijiu. Export opportunities also exist in Chinese diaspora communities globally.
Threats: Stricter drunk driving laws and a focus on healthy living among Chinese millennials threatens Baijiu consumption. Rising competition from foreign spirits and beer brands in China.
Key Takeaways
The global Global Baijiu market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global Baijiu Market is estimated to be valued at US$ 100.96 Bn in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030.
Regionally, China dominates the Baijiu market with a strong consumer base. Chinese consumers drink over 70% of the world’s Baijiu consumption. The growing affluence of China’s population bodes well for Baijiu sales. The APAC region excluding China is projected to be the fastest growing regional market for Baijiu during the forecast period. Baijiu companies are focused on expanding distribution to the large Chinese diaspora populations in Southeast Asian countries. E-commerce is also expanding Baijiu accessibility to new international consumers.
Key players operating in the Baijiu market are Kweichow Moutai Co., Ltd., Wuliangye Yibin Co., Ltd., Luzhou Laojiao Co., Ltd., Yanghe Distillery Co., Ltd., Fen Chiew Group Co., Ltd. Kweichow Moutai is the largest Baijiu company globally by revenues. It maintains a solid brand image and is taking measures to attract younger consumers and expand exports.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it