Baijiu Market Gaining Traction from Expanding International Consumers Base

Baijiu Market: Snapshot

As per the USDA Foreign Agricultural Service gain report, China spirit sales observed the growth of $25.1 billion in 2006 and continues to grow by now. The report also suggested that the growth of sales is mainly due to Baijiu, followed by whiskey and sales brandy.  The taste and aroma of the liquor is the major contributor to the growth of the baijiu market. The baijiu market is witnessing assorted developments with different innovation such as flavored and non-flavored type. There is an increased demand for Baijiu, and this could be understood better with new findings by IndustryARC, which has gauged the global baijiu market size at around $100 billion in 2018. Moreover, the analyst of the report projects the demand in the baijiu market to increase at compound annual growth rate (CAGR) of 6.9% during the forecast period of 2019 to 2025. The report is titled “Baijiu Market: By Type (Flavoured and Non-flavoured); By Material (Sorghum, Wheat and others); By Application (Beverages); By Geography- Forecast (2019-2025)”.

This product’s main origin is China, hence it is more well-known in China or APAC region. As per the findings by the analyst of IndustryARC, APAC contributed to 40% of the total demand share in 2018. The increasing demand for the product also warrants for the innovation in the product. Hence, the baijiu market has found its leading segment in strong aroma with an application CAGR of 6.4% through to 2025.

Baijiu Market: Growth Drivers

The baijiu market growth is expected to be driven by the increasing disposable income, urban populace, growing effect of western culture, and peer impact on youngsters.

Baijiu is the most consumed spirit product type in China attributable to the astonishing flavor accessible by the market players. Furthermore, the escalating fondness for light taste drinks and alcohol such as rice aroma by the female population by China is driving the baijiu market.

Baijiu is distinct due to its historical value, unique production process, and large variety of taste. It has 12 types of aromas and around 10,000 varieties of final tastes. In modern days, the consumption of this spirit has been inclined by various social and cultural changes that have taken place over the years in China.

The growing purchasing influence of Chinese millennial population is expected to play a superior role in the growth of the baijiu market during the forecast period. According to the World Bank data, millennial, mostly of the age group 16 to 24 account for 69% of the total Chinese population in 2018, which is expected to influence the growth of the Baijiu market during the forecast period.

Baijiu is available in many taste, it is made by fermentation of ingredients such as wheat, barley, glutinous rice, millet, and corn. The drink can be stored for longer duration without any change in taste. Hence, it is widely used for gifting purpose.

Consumption of small amount of baijiu reduces the risk of cardiovascular diseases and Alzheimer’s disease. Moreover, it also reduces the uric acid concentration in serum helps to decreases platelet aggregation, and improves serum lipid profiles that aid to the growth prospects in of the baijiu market.

 Baijiu Market Trends:

  • One of the progressive trends in the baijiu market is the increasing export of the product to the European and US countries. The accumulative demand for baijiu in the US region has led to the start of bars and cafes that offer baijiu drinks in the US.
  • Sorghum is used as a raw material for the manufacturing of baijiu due to its distinct flavor that is accounted for high market share during the forecast period.
  • The market is trending with increasing E-commerce retail sales and growing private baijiu consumption.
  • Baijiu is fixed with different flavors and aroma and fruits to serve as a special treat in social gatherings and meetings. The aftertaste, fragrant flavor, and soft mouthfeel of strong-flavor baijiu are gaining immense popularity globally.

Global Baijiu Market Competitive Landscape

Some of the major key players in the market are Kweichow Moutai Group, Wuliangye, Yanghe Brewery, Daohuaxiang, LuzhouLaojiao, Langjiu Group, Gujing Group, Shunxin Holdings, Fen Chiew Group, and Baiyunbian Group.


The taste and aroma of the liquor is the major contributor to the growing opportunities in the baijiu market.  Baijiu is available in many tastes, it is made by fermentation of ingredients such as wheat, barley, glutinous rice, millet, and corn. The strong aroma of the drink is gaining traction from the consumers in the market.


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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.