Overview of the baijiu market in China
Technavio’s market research study has identified the rise in number of middle-class consumers to be one of the primary factors that will fuel the growth of the baijiu market in China during the next few years. The growing middle-class population in China is influencing the demand for premium and standard baijiu products. Increasing demand for products that offer a better sense of lifestyle is encouraging the players to focus on the middle-class consumers dur to the growing purchasing power of these middle-class consumers. Our market research analysts have estimated that this market will grow steadily at a CAGR of about 5% by 2021.
Baijiu is also known as sorghum wine. The increasing sales of baijiu is subsequently influencing the demand for sorghum. China depends primarily on sorghum imports to manufacture baijiu and is engaged in large scale imports and domestic production of sorghum. The country imports nearly 179 million bushels of sorghum from the US and is constantly focusing on increasing their domestic production of sorghum. According to our analysts, the increasing imports of sorghum will be one of the key trends that will gain traction in the baijiu market in China in the coming years.
Competitive landscape and key vendors
The baijiu market in China is fragmented owing to the presence of several international and regional players. Regional players have strong market position and the global players struggle to improve their market share. The players in the Baijiu market in China are competing intensely in terms of pricing strategies, promotion and advertising, and innovation in taste and flavor and other aspects.
The leading vendors in the market are
- Hubei Daohuaxiang Wine Co
- Jiangsu Yanghe Distillery
- Kweichow Moutai
- Wuliangye Company
The other prominent vendors in the market are Anhui Kouzi Distillery, Anhui Yingjia Group, Beijing Shunxin Holding Group, Gujing Group, Hubei Baiyunbian, Luzhou Laojiao, Shaanxi Xifeng Liquor Company, Shanxi XinghuaCun Fen Jiu Group, and Sichuan Langjiu Group.
Segmentation by price and analysis of the baijiu market in China
- Standard baijiu
- Low-end baijiu
- Economy baijiu
- Premium baijiu
- Super-premium baijiu
The standard baijiu segment consists of baijiu products priced between USD 20 and USD 40. This demand for thesse products is gaining traction owing to the growing middle-class population and the increasing disposable income of consumers. Product affordability and the development of innovative products will contribute to the growth of this segment in this Chinese alcohol market.
Segmentation by distribution channel and analysis of the baijiu market in China
- Off-trade
- On-trade
The off-trade distribution channel refers to the "to-go" sales of packaged products in establishments such as wineries, retail stores, and package stores. This distribution channel allows a healthy interaction between the customer and sellers, while providing customers the comfort of their home and providing storage options for convenient storage. The increasing number of consumers opting to consume baijiu in their homes will contribute to the growth of the baijiu market in China in the off-trade segment.
Key questions answered in the report include
- What will the market size and the growth rate be in 2021?
- What are the key factors driving the baijiu market in China?
- What are the key market trends impacting the growth of the baijiu market in China?
- What are the challenges to market growth?
- Who are the key vendors in the baijiu market in China?
- What are the market opportunities and threats faced by the vendors in the baijiu market in China?
- Trending factors influencing the market shares of China.
- What are the key outcomes of the five forces analysis of the baijiu market in China?
Technavio also offers customization on reports based on specific client requirement.