China baijiu makers try to woo sober Gen Z with milder liquor
[BEIJING] China’s struggling liquor distillers are pivoting to milder versions of the nation’s fiery baijiu in hopes of appealing to a younger generation of lighter drinkers.
The country’s economic malaise, and Beijing’s crackdown on boozy banquets among government officials and businessmen, are forcing distillers to innovate around the grain-based liquor that traditionally contains more than 50 per cent alcohol.
Wuliangye Yibin, which has seen sales growth slow for two years, in August began selling “29° Crush On”, a liquor with 29 per cent alcohol by volume – significantly lower than the company’s signature bottle packing 52 per cent alcohol content. It hired Cantopop star Gloria Tang to promote the new brand that comes in a slender minimalist sky-blue bottle, a contrast from traditionally ornate, ceremonial baijiu decanters.
Rivals Anhui Gujing Distillery and Shede Spirits introduced tipple products with alcohol volumes of 26 and 29 per cent, respectively, that same month. ZJLD Group went a step further by selling its own brand of beer.
Other baijiu makers are planning to introduce reduced-alcohol products in coming months.
China’s younger generation rejects the “intense sensation of high-alcohol baijiu”, said Morningstar senior analyst Jennifer Song. “We believe expanding low-alcohol baijiu offerings is a long-term trend, driven by demographic change and rising health awareness.”
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The distillers’ strategy shift came after sales began fizzling.
Wuliangye posted a 4.2 per cent growth in sales in the first six months of 2025, decelerating from 7.1 per cent growth last year and a 12.6 per cent increase in 2023. Smaller distillers have been hit harder.
Jiangsu Yanghe Distillery experienced a 35.3 per cent year-on-year revenue drop in the first half, while Jiugui Liquor suffered a 43.5 per cent on-year sales plunge in the same period.
Even Kweichow Moutai, the king of baijiu-makers known as the liquor of choice for China’s political elite, is growing at the slowest pace since at least 2016.
Potent spirit
The companies are also grappling with a growing cost-consciousness across society.
More than 90 per cent of Chinese consumers tend to buy baijiu priced under 500 yuan (S$91), according to a 2023 report from the China Alcoholic Drinks Association. That is significantly less than the price of traditional high-alcohol content bottles.
Wuliangye’s 29° Crush On sells for 399 yuan per 500 ml bottle, while its equally sized 52 per cent alcohol content spirit goes for about 1,000 yuan each.
There are some early glimpses of success for Wuliangye’s light baijiu. On Alibaba Group’s Tmall, 29° Crush On generated more than six million yuan in September sales, becoming the company’s third most popular brand among its 38 products sold online, data from analytics firm Hangzhou Zhiyi Technology show.
The longer-term challenge for liquor producers is the consumer behaviour of millennials and Gen Zers, many of whom are eschewing baijiu’s potent kick and overpowering taste regardless of the price.
“The taste of baijiu is just too spicy for me,” said Wang Bo, a 36-year-old working in the tourism industry. He prefers the milder taste – and less alcohol – of beer.
A 2022 survey by consulting firm RIES revealed 70 per cent of 2,219 young Chinese interviewed in 25 cities viewed baijiu as unhealthy and its taste unpleasant. Nearly 40 per cent preferred beverages with an alcohol content of around 10 per cent.
Some baijiu makers are also expanding into drinks such as fruit wines and ready-to-drink cocktails.
Wuliangye began offering a lychee wine several months ago, while Kweichow Moutai has been selling a blueberry sparkling wine since last year.
Chongqing Jiangxiaobai Liquor has gone so far as to rebrand itself away from its baijiu-centric business to a producer of low-alcohol beverages, including fruit wines and flavoured spirits.
It is far from a winning strategy at a time when even established vintners are struggling in China. Australia’s Treasury Wine Estates – producer of the iconic Penfolds brand – said lacklustre September sales in China signal it may not meet targets for the 2026 financial year.
Baijiu will remain a Chinese cultural icon, analyst Song said. Producing a lighter version of the liquor that retains its strong flavour, though, requires cutting-edge blending technology and it will take time for market success, she said.
The endeavour, Song added, “will help to drive a long-term and more sustainable growth”. BLOOMBERG
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