While the world sips and savors global spirits, China's vast distilleries are quietly producing a staggering 70% of it all, pouring out a complex and evolving narrative of tradition, scale, and modern market dynamics that is reshaping the global alcohol industry.
Key Takeaways
- In 2023, China's baijiu production volume reached 7.92 million kiloliters, accounting for 70% of global spirits production
- Baijiu output in Sichuan province, the largest producer, was 3.45 million kiloliters in 2022, representing 43% of national total
- China's total alcohol production including beer and wine hit 52.3 billion liters in 2023, up 4.1% YoY
- In 2023, urban Chinese consumers drank 8.2 liters of baijiu per capita annually
- Total alcohol consumption volume in China was 55.1 billion liters in 2023, up 3.8% YoY
- Baijiu sales value reached RMB 677 billion in 2023, 6.5% growth
- Baijiu market size in China was valued at RMB 720 billion in 2023
- Total alcohol industry revenue reached RMB 1.05 trillion in 2023, up 7.2%
- Top 100 baijiu brands revenue totaled RMB 550 billion in 2023
- China baijiu exports volume reached 450,000 kiloliters in 2023, up 15%
- Baijiu exports value RMB 5.2 billion in 2023, to over 100 countries
- Beer exports from China totaled 1.2 million kl in 2023, mainly to Asia
- China's baijiu market projected to grow at 5.8% CAGR to RMB 950 billion by 2028
- Total alcohol consumption expected to reach 62 billion liters by 2027, up 2.5% CAGR
- Premium baijiu segment to grow 10% annually through 2025
China's immense baijiu production dominates its steadily growing alcohol industry and consumer market.
Consumption
- In 2023, urban Chinese consumers drank 8.2 liters of baijiu per capita annually
- Total alcohol consumption volume in China was 55.1 billion liters in 2023, up 3.8% YoY
- Baijiu sales value reached RMB 677 billion in 2023, 6.5% growth
- Beer consumption per capita in China was 32 liters in 2023
- High-end baijiu (RMB 1000+ /bottle) consumption grew 12% to RMB 150 billion in 2023
- Online alcohol sales in China hit RMB 250 billion in 2023, 22% YoY increase
- Gen Z (18-25) alcohol consumption frequency was 2.1 times/week in 2023 survey
- Baijiu consumption in banquets accounted for 45% of total in 2023
- Wine consumption volume reached 1.8 billion liters in 2023, up 8%
- Low-alcohol beverage consumption surged 35% to 5 billion liters in 2023
- Rural alcohol expenditure per capita was RMB 450 in 2023, 70% on baijiu
- Cocktail consumption in bars grew 28% YoY, 1.2 billion servings in 2023
- Beer sales in off-trade channels were 65% of total consumption in 2023
- Female alcohol consumers rose to 35% of total in 2023, preferring wine and beer
- Baijiu home consumption increased 18% post-COVID in 2023
- Average spend on alcohol per consumer was RMB 1,200 annually in 2023
- Ready-to-drink (RTD) alcohol sales volume hit 2.5 billion cans in 2023
- Alcohol consumption during Chinese New Year 2023 was 1.2 billion liters
- Baijiu trial consumption in stores reached 15 million tastings in 2023
- Non-alcoholic beer consumption grew 45% to 800 million liters in 2023
- Premium beer consumption share rose to 25% of total in 2023
- Baijiu gifting volume was 500 million bottles during holidays in 2023
- Urban millennial consumption skewed to craft beer, 40% preference in 2023
- Alcohol delivery orders via apps exceeded 1 billion in 2023
- Per capita spirits consumption in China was 7.5 liters pure alcohol equivalent in 2023
- Import wine consumption dominated by Bordeaux at 22% share in 2023
- Baijiu low-degree variants consumption up 25% to 1.5 million kl in 2023
- Total alcohol ad spend influenced consumption growth by 10% in 2023
- In Q4 2023, monthly alcohol consumption averaged 4.2 liters per adult urbanite
Consumption Interpretation
Despite the surge in trendy cocktails and craft beers, China's drinking culture remains firmly anchored by baijiu's staggering economic might and banquet-hall dominance, yet is being quietly reshaped by a sober-curious generation clicking "buy now" for low-alcohol sips delivered to their door.
Exports/Imports
- China baijiu exports volume reached 450,000 kiloliters in 2023, up 15%
- Baijiu exports value RMB 5.2 billion in 2023, to over 100 countries
- Beer exports from China totaled 1.2 million kl in 2023, mainly to Asia
- Wine exports value RMB 1.8 billion in 2023, up 12%
- Moutai exported 2.5 million bottles in 2023, revenue RMB 1.2 billion
- Yellow wine exports grew 20% to 15,000 tons in 2023
- Imported spirits volume 250,000 kl in 2023, value RMB 25 billion
- Whisky imports to China RMB 8 billion in 2023, 18% growth
- Wine imports totaled 1.65 billion liters in 2023, down 2% volume but up 5% value
- Beer imports value RMB 3.5 billion in 2023, from Europe and US
- Baijiu export to US reached 50,000 kl in 2023
- EU-China alcohol trade deficit for China RMB 20 billion in 2023
- Fenjiu exports doubled to RMB 500 million in 2023
- RTD exports from China 300 million cans in 2023
- Imported cognac volume 80,000 kl in 2023
- Baijiu OEM exports for foreign brands 100,000 kl in 2023
- Wine export growth to Belt and Road countries 25% in 2023
- Tariff revenue on alcohol imports RMB 15 billion in 2023
- Baijiu export certification to 50 new markets in 2023
- Imported premium whisky share 60% of spirits imports value in 2023
- China beer exports to ASEAN RMB 2 billion in 2023
- Bulk wine imports 200 million liters in 2023 for blending
- Luzhou Laojiao export revenue RMB 800 million in 2023
- Alcohol free trade zone exports up 30% in Shanghai FTZ 2023
- Imported rum and tequila grew 22% to RMB 2 billion in 2023
- Baijiu re-exports from Hong Kong 20,000 kl in 2023
- Total alcohol trade balance deficit RMB 45 billion in 2023
- Wuliangye overseas revenue RMB 1.5 billion in 2023
Exports/Imports Interpretation
In a spirited global tango, China is assertively pouring its potent baijiu onto the world stage while developing a decidedly refined—and costly—taste for imported premium whiskies and cognacs, resulting in a trade balance that’s deeply in the red but buzzing with ambitious activity.
Market Size
- Baijiu market size in China was valued at RMB 720 billion in 2023
- Total alcohol industry revenue reached RMB 1.05 trillion in 2023, up 7.2%
- Top 100 baijiu brands revenue totaled RMB 550 billion in 2023
- Beer market revenue was RMB 280 billion in 2023
- Wine market valued at RMB 120 billion in 2023, with 40% premium segment
- E-commerce alcohol market share hit 25% of total revenue in 2023
- Moutai revenue RMB 147 billion in 2023, 19% YoY growth
- Wuliangye revenue RMB 83.9 billion in 2023, up 17%
- Yanghe Brewery revenue RMB 32 billion from baijiu in 2023
- Luzhou Laojiao revenue RMB 27 billion in 2023
- Fenjiu revenue RMB 15.3 billion in 2023, 20% growth
- Alcohol industry profit margin averaged 22% in 2023, highest for baijiu at 45%
- Number of alcohol retail outlets exceeded 5 million in 2023
- Baijiu market concentration (CR5) reached 35% in 2023
- Premium segment (>RMB500/bottle) held 28% revenue share in 2023
- Beer industry EBITDA was RMB 45 billion in 2023
- Wine import market size RMB 35 billion in 2023
- Alcohol tourism revenue from distilleries RMB 10 billion in 2023
- Brand value of top baijiu Moutai at RMB 2.8 trillion in 2023
- Mid-range baijiu (RMB100-500) revenue RMB 300 billion in 2023
- RTD market revenue RMB 15 billion, 30% growth in 2023
- Alcohol packaging market for China valued RMB 50 billion in 2023
- Distillery real estate value totaled RMB 500 billion in 2023
- Baijiu IPOs raised RMB 20 billion in 2023
- Alcohol supply chain value added RMB 300 billion in 2023
- Tax revenue from alcohol industry RMB 250 billion in 2023
- Liquor retail chain revenue RMB 400 billion in 2023
- Craft spirits market size RMB 8 billion in 2023, up 40%
Market Size Interpretation
Even as the beer market bubbles at RMB 280 billion and wine slowly matures, China’s real national pastime is a staggering, wildly profitable RMB 720 billion baijiu industry, where a few luxury brands like Moutai—valued at nearly RMB 2.8 trillion—ferment margins of 45% and prove that the most intoxicating business in China is selling tradition by the bottle.
Production
- In 2023, China's baijiu production volume reached 7.92 million kiloliters, accounting for 70% of global spirits production
- Baijiu output in Sichuan province, the largest producer, was 3.45 million kiloliters in 2022, representing 43% of national total
- China's total alcohol production including beer and wine hit 52.3 billion liters in 2023, up 4.1% YoY
- Moutai brand produced 28,500 tons of feitian maotai in 2023, a record high with 15% growth
- Luzhou Laojiao's base liquor production capacity expanded to 120,000 tons annually by end-2023
- Wuliangye's production of core five-grain baijiu reached 400,000 tons in 2023
- Shanxi Fenjiu produced 85,000 tons of Qinghua Fen aroma baijiu in 2023, up 12%
- Total sorghum consumption for baijiu production in China was 12.5 million tons in 2022
- China's craft distillery production grew to 150,000 kiloliters in 2023, 25% YoY increase
- Beer production volume in China was 37.2 billion liters in 2023, down 1.5% from 2022
- Wine production in China reached 1.45 billion liters in 2023, with 60% from domestic grapes
- Yellow wine production totaled 680,000 tons in 2023, mainly in Zhejiang province
- Baijiu enterprises numbered 1,682 in China as of 2023, down 5% from prior year
- High-end baijiu production capacity utilization rate was 92% in 2023
- Automated production lines in baijiu factories increased to 45% by 2023
- In 2023, per capita alcohol production in China was 37 liters, highest in spirits category
- Rice wine production in Guangdong hit 120,000 tons in 2023
- China's organic baijiu production volume was 50,000 kiloliters in 2023, up 30%
- Distillery wastewater treatment capacity reached 95% compliance in 2023
- Baijiu raw material innovation led to 15 new strains in 2023 production
- Total investment in baijiu production facilities was RMB 120 billion in 2023
- China's baijiu production energy efficiency improved by 18% from 2020 to 2023
- Small-scale baijiu producers output 20% of total volume in 2023
- Hefei guojiao produced 25,000 tons in 2023
- Langjiu group's production capacity hit 100,000 tons annually in 2023
- Total baijiu fermentation pits in China exceeded 200,000 in 2023
- Beer malt production for domestic use was 28 million tons in 2023
- Wine grape acreage expanded to 850,000 hectares in 2023, yielding 13.5 million tons
- Baijiu bottling automation rate reached 75% in top 100 producers in 2023
- China's alcohol production PMI averaged 52.3 in 2023, indicating expansion
Production Interpretation
Amidst a slight decline in beer and despite a minor consolidation of producers, China’s vast and evolving alcohol industry, now more automated and efficient, is fundamentally a baijiu-fueled titan, with Sichuan alone producing enough of the fiery spirit to command nearly half the national output and to decisively claim global spirits dominance.
Trends/Forecasts
- China's baijiu market projected to grow at 5.8% CAGR to RMB 950 billion by 2028
- Total alcohol consumption expected to reach 62 billion liters by 2027, up 2.5% CAGR
- Premium baijiu segment to grow 10% annually through 2025
- Low/no alcohol beverages market to hit RMB 100 billion by 2025, 25% CAGR
- Beer market decline projected at -1% CAGR to 2028 due to health trends
- Wine consumption forecast 2.2 billion liters by 2027, 4% CAGR
- E-commerce alcohol sales to reach 35% market share by 2025
- Gen Z driving 15% rise in flavored baijiu by 2026
- Craft beer production to triple to 1 billion liters by 2028
- Baijiu exports projected RMB 10 billion by 2027, 12% CAGR
- Health-conscious consumption to reduce pure alcohol intake by 5% by 2025
- RTD market CAGR 20% to RMB 50 billion by 2028
- Baijiu production capacity to stabilize at 9 million kl by 2025
- Imported wine value up 6% CAGR to RMB 50 billion by 2027
- Sustainability investments in alcohol industry to RMB 50 billion by 2025
- Cocktail bar numbers to double to 10,000 by 2026
- Baijiu digital marketing spend up 30% YoY to 2025
- Rural premiumization trend lifts mid-high baijiu 8% CAGR to 2028
- AI in baijiu production adoption 50% by 2027
- Female consumer share to 45% by 2028
- Alcohol subscription services users to 50 million by 2025
- Baijiu NFT and metaverse sales projected RMB 1 billion by 2025
- Zero-sugar alcohol variants 20% market by 2027
- Distillery tourism visitors 100 million annually by 2028
- Baijiu consolidation to top 50 firms 70% share by 2025
- Beer premiumization to 40% share by 2027
- Global baijiu share outside China to 10% by 2028
- Regulatory tightening on ads to slow mass market growth 2% to 2025
- Organic alcohol certification products 15% market by 2027
Trends/Forecasts Interpretation
The Chinese alcohol market is meticulously orchestrating its own grand, spirited evolution: traditional giants like baijiu are striding confidently towards premiumization and global conquest, while a soberingly health-conscious and digitally-native generation sips on zero-sugar RTDs, explores virtual NFT cellars, and drags the entire industry—kicking and screaming—into a more sophisticated, segmented, and sustainable future.
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