Baijiu Market Overview:
According to chemical analysis performed by the Technical University of Munich, Chinese people were speculatively the first ones in the world to make alcohol using fermentation of rice, honey, and fruit almost 9,000 years ago. Baijiu, their most popular drink, is perennially high in demand in the country and is making its way to popular bars in first world countries such as United States of America and Canada. Baijiu’s entrance in the international market is credited to a 2007 article printed in Time which suggested the idea of using this tangy beverage in cocktails. Since then, some bars internationally have started popularizing this drink amongst the general public. The Baijiu market is expected to grow with a healthy compound annual growth rate of 6.9% during the forecast period of 2019-2025. 2018 seemed to be a good year for the beverage as the global market size stood at $100 billion. Conventionally recommended to be taken with food and not as a standalone drink, Baijiu has a weak dilution of alcohol with around 40%-60% of the drink being saturated with the liquor. Strong aroma, a type of Baijiu is categorized with a taste resembling that of cheese and a fragrance of either pineapple or guava. The Baijiu market has found its leading segment in strong aroma with an application CAGR of 6.4%
Baijiu Market Outlook:
Baijiu is considered to be one of the world’s oldest yet best selling liquor in the world. Made prominently out of sorghum, it is described as tangy and citrusy with Moutai Baijiu leading the global market sales. This drink is most importantly categorized on the basis of aroma or flavor, important ones being sauce flavor, light flavor, rice aroma, phoenix aroma, and mixed aroma. Baijiu acquires demand from the entire world for its Asian aura and associated history. This product is one of the most important factors for tourism in the Chinese province, which is why the government of China is making efforts to improve the Baijiu market and help it in gaining international eminence. APAC region leads the global Baijiu market with a regional share of 40% owing to China being the creator and primary producer of this beverage. While the drink has existed in China for centuries, commercial production of Baijiu started only around the 1950s with the drink now making it to the international markets, thanks to Chinese diaspora.
Baijiu Market Growth Drivers:
Ø High Global Demand For Alcohol
Alcohol is almost 9,000 years old and has been an important part of human civilization. According to World Health Organization’s Global Status Report on Alcohol and Health 2018, pure alcohol consumption per year averages around 6.4 liters per person, with population above 15 years old taken into account. These statistics are testimony to alcohol being one of the most important beverages in the world, commonly used by the working class. This high demand majorly fuels the global Baijiu market and is providing a pathway for it to enter the international bars.
Ø Baijiu Is A Part Of Chinese Tradition
Baijiu is undoubtedly the most common Chinese beverage and is a staple in Chinese events like weddings, birthdays, and festivals. The drink has been prevalent in China since 2nd century BC and holds a significant place in the ancient Chinese culture. During the Lunar New Year, Baijiu sales experience a significant boost as the drink in consumed in every nook and corner of the country. According to a research paper titled ‘The Geographical Patterns of Chinese Liquors During 1995-2004’ written by Xilin Zhao, Ya Tang & Chaosheng Zhang, over 10 billion liters of Baijiu is consumed annually in China. These are the reasons why Baijiu market will continue to generate constant demand from APAC region.
Baijiu Market Challenges:
One of the most primary challenges faced by the market of this Chinese alcoholic beverage is its limitation in the APAC region. Though alcoholic beverages like vodka and whiskey are quite common, the name of Baijiu is still to be heard in the global market. This is set to change with the Chinese diaspora introducing the beverage in the international market and working on the popularization of this drink.
Baijiu Market Key Players Perspective:
Some of the key players in the Baijiu market are Kweichow Moutai Group, Wuliangye, Yanghe Brewery, Daohuaxiang, Luzhou Laojiao, Langjiu Group, Gujing Group, Shunxin Holdings, Fen Chiew Group, and Baiyunbian Group.
Kweichow Moutai Group sells the most popular Baijiu called Moutai that has always experienced the highest demand from Chinese citizens. On every World Baijiu Day, the company conducts international events in reputed venues to help the drink gain wide acclaim.
Baijiu Market Trends:
Ø Baijiu Being Used In Cocktails
Baijiu being utilized in cocktails has become a common alcoholic trend. Through this, the global familiarization with the drink is expanding and increasing sales of this beverage. Chinese bartenders and restaurateurs have been emphasizing on the taste of this drink and how this will define alcohol consumption in the upcoming few years.
Capital Spirits, a bar completely dedicated to Baijiu, the world’s first Baijiu-themed bar has helped in increasing this drink’s popularity and benefited both tourism as well as the alcohol industry. Such is the increasing love for this drink that Chinese people have dedicated an entire day to this drink called The World Baijiu Day which is celebrated on August 9. Incorporation of Baijiu in popular cocktails in thematic restaurants and events is disrupting the market and will be an important factor in its future growth.
Baijiu Market Research Scope
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Baijiu Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of cheese in the Baijiu Market, and their specific applications in different areas.
Baijiu Market Report: Industry Coverage
The global Baijiu market is segmented on the basis of type, material, and application. On the basis of type, the market is bifurcated into flavored and non-flavored. By material, the market is divided into sorghum, wheat and others. And based on application, the only segment is beverages.
The Baijiu Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
• North America: The U.S., Canada, Mexico
• South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
• Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
• APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
• Middle East and Africa: Israel, South Africa, Saudi Arabia