by Baijiu, also known as Chinese white spirit or rice wine, is one of the most popular alcoholic beverages in China, with many diverse styles and grades available based on regional production methods. Some popular varieties include Maotai, Wuliangye and Luzhou Laojiao. Baijiu is usually consumed on social occasions and considered a symbol of hospitality. With changing tastes and exposure to international beverages, premium grades of Baijiu featuring well-balanced flavors have gained popularity among young urban drinkers in China. The adoption of Baijiu as a high-end gift staple and luxury good exemplifies the rising demand for quality variants.
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:
One of the key trends in the Baijiu market is the rising prominence of E-commerce platforms. Domestic Chinese E-commerce giants like Alibaba and JD.com have established dedicated online storefronts for premium Baijiu varieties. This offers convenience to urban consumers and has expanded the potential customer base beyond traditional liquor stores. Live-streaming and influencer-led marketing on social media has also boosted the discovery and sales of niche Baijiu brands. The growing influence of E-commerce is expected to be a major driver of future market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Global Baijiu market Size is moderate to low as producing high quality Baijiu requires extensive experience and reputation. Bargaining power of buyers: The bargaining power of buyers in the Baijiu market is moderate as there are few substitute products and buyers have some influence over prices. Bargaining power of suppliers: The bargaining power of suppliers in the Baijiu market is low as the raw materials required are quite common and available. Threat of new substitutes: The threat of new substitutes in the Baijiu market is low as Baijiu has a deep cultural history in China and there are few direct substitutes. Competitive rivalry: The competitive rivalry in the Baijiu market is high as the market is dominated by few major players.
Key Takeaways
The global Baijiu market 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.
Regional analysis:
The Baijiu market in China dominates the global market with over 95% of the total market share. Chinese provinces of Sichuan, Anhui, Henan, and Guangdong dominate the production and consumption of Baijiu in China.
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. Key players operating in the China region focus on brand building, marketing, and expanding distribution to increase their market share in the domestic market as well as explore opportunities overseas.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
