In China, the baijiu market continues to experience a downturn, with intense competition leading many well-known baijiu companies to slash prices. To seize market share, many baijiu enterprises have shifted their focus to the wedding market by introducing baijiu specifically priced for wedding banquets, aiming to attract young consumers.
Since the beginning of 2025, according to a report from the Jinan Daily’s “New Yellow River” section, many baijiu distributors have indicated that the market remains cold, with the industry possibly undergoing a deep adjustment. Sun, a liquor store owner in Jinan, noted that the first quarter, typically considered the “golden season” for baijiu, is facing a different reality this year. Distributors are now ordering based on demand, while baijiu prices continue to decline.
To stabilize market prices, leading baijiu brands such as Maotai, Luzhou Laojiao, and Yanghe have introduced measures to control quantities and stabilize prices since 2025. However, baijiu consumption demand remains weak, leading to a situation of excessive inventory. For example, the price of a bottle of Maotai Feitian has dropped from 2350 RMB per bottle before the Chinese New Year to 2155 RMB per bottle. Maotai’s core product, Maotai 1935, has seen a price decrease from 1188 RMB per bottle to 685 RMB per bottle.
A report released by the China Alcoholic Drinks Association shows that in the first half of 2024, the top three price ranges with the best market turnover feedback from distributors and retailers were 300-500 RMB per bottle, 100-300 RMB per bottle, and below 100 RMB per bottle.
In response to market changes, many baijiu companies have launched several high-end products priced around 500 RMB per bottle, such as Yanghe’s Dream Blue Business Edition priced at 500 RMB per bottle, Luzhou Laojiao’s high-end product 60 Edition Tequ priced at 500 RMB per bottle, and Fenjiu’s Blue Flower 20 positioned in the 300-500 RMB per bottle high-end price range.
In China, with the arrival of April, wedding season is gradually picking up. A baijiu distributor, Mr. Li, revealed that the demand for wedding banquet wines now prioritizes cost-effectiveness, with budgets generally decreasing by 10-15%. The mainstream price range for wedding banquet wines, which used to be between 500-800 RMB per bottle in previous years, has now dropped to around 300 RMB per bottle.
To address the market shifts, top baijiu companies such as Wuliangye, Shuijingfang, Jinshi Yuan, and Hengshui Laobaigan, along with other regional leading enterprises, have introduced corresponding activities and promotional policies for the wedding banquet market.
In order to compete in the market, many baijiu enterprises showcased their newly launched “clear bottle” products at the Sugar & Wine Expo held in Chengdu in March. These products, also known as white bottle or naked bottle baijiu, come without luxurious packaging and are priced more affordably. Leading baijiu brands introducing clear bottle baijiu include Luzhou Laojiao, Anhui Gujing Gong, and others.
Industry commentator Xiao Chuzhu analyzed in Phoenix Weekly Finance that high-end baijiu consumers are downgrading their consumption choices. For instance, consumers who used to drink 53% ABV Maotai now opt for Maotai 1935, while those who preferred Wuliangye and Guojiao 1573 are choosing Fenjiu “Fen 20” priced at 400 RMB or even a 50 RMB glass of Fenjiu.
In response to these market dynamics, netizen “Wen Wan Sheng Huo” commented: “Prices and value no longer align, consumers are returning to rational consumption.”
Similarly, a Tencent user remarked, “Previously hyped to the ceiling, and now with the economy in a downturn, many young people are switching to diverse whiskies, leading to a thorough reshuffle in the baijiu industry and exploring the bottom situation.”
However, there are also netizens who attribute the decline in baijiu sales to the overall economic downturn. “Yang Y” pointed out, “People don’t have money. Even the best baijiu won’t be consumed.”
Another Tencent user, r9gxc9j, summarized, “In short, consumption downgrading and the fact that young people are not drinking baijiu are making the situation tougher for baijiu companies next year.”