Baijiu Market Strategic Analysis to Understand the Competitive Outlook of the Industry, 2025


Market Overview

Baijiu is a popular and traditional fermented alcoholic drink consumed in China. It is a clear and transparent drink named after the Chinese word ‘bai’, which means white. The production of baijiu involves preparation, daqu making, alcoholic fermentation, distillation, and aging. Sorghum is the main raw material used in the production of baijiu. Baijiu is different from other liquor because it is contained in mud pit or clay vessel unlike whisky which are contained in wooden barrels during the process of sugar conversion and fermentation.


Among the crop type, sorghum cereal segment accounted for the highest market share in the global baijiu market in 2017. This is owing to high preference of sorghum as a raw material due to its distinct flavor compared to other ingredients used to manufacture baijiu.

Among the type of flavor, strong-flavor segment held dominant position in the market in 2017. This is owing to characteristics such as fragrant flavor, soft mouth feel, and aftertaste of strong-flavor baijiu. The segment is projected to hold dominant position in the market over the forecast period.


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Market Dynamics

Increasing preference of baijiu among the populace and rising disposable income of consumers are key factors driving the global baijiu market growth. The drink can be stored for longer duration without any change in taste. Although, sorghum is a popular ingredient used to produce baijiu, other ingredients such as wheat, barley, rice, millet, and corn can also be used. Consumption of small amount of baijiu reduces the risk of Alzheimer’s disease, reduces the uric acid concentration in serum, helps to improves serum lipid profiles, decreases platelet aggregation, and reduces the risk of cardiovascular diseases. According to a report by the U.S. Department of Agriculture (USDA), China Alcoholic Drinks Association stated that consumption of baijiu in 2017 grew at the rate of 9% from 2016.

Furthermore, increase in production of wheat and maize is expected to boost the supply of raw materials for production of baijiu and helps in growth of the global baijiu market. According to a statistics of Food and Agricultural Organization (FAO), the global production of maize was 1,060 million tons in 2016 and grew at the rate of 4.9% from 2015. Moreover, the global production of wheat was 749 million tons in 2016 and grew at the rate of 1.7% from 2015.

However, baijiu contains high volume of alcohol (up to 65%) and its excessive consumption may lead to damage of liver and pancreas, experience of numbness, and affect the immune and digestive systems.


Market Taxonomy

On the basis of source, the global baijiu market is segmented into:

  • Sorghum

    Wheat

    Barley

    Corn

    Rice

On the basis of flavor, the global baijiu market is segmented into:

  • Strong-flavor

    Sauce-flavor

    Light-flavor

    Rice-flavor

    Sesame-flavor

    Chi-flavor

    Others (Te-flavor, Feng-flavor, and others.)


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