Baijiu blues: China's Gen Z rewriting liquor industry as tastes change, consumption dips

South China Morning Post

07-06-2025

Selecting which crops to grow each season can be a make-or-break decision for farmers. And in the ancient Chinese town of Baisha, famous for its liquor production, more and more are sowing seeds of change in a bid to capitalise on the evolving tastes of consumers.
Located in the southwestern megacity of Chongqing and home to the distillery of Chinese baijiu distilled-liquor brand Jiang Xiao Bai, the town is seeing its farmland increasingly being used to grow green plums instead of sorghum grain.
Both are key ingredients in producing certain spirits, but unlike sorghum, which is primarily used in traditional fiery baijiu distillation, green plums are used to produce much lighter and fruitier wine.
'Innovative low-alcohol drinks mark a very clear market trend in China,' said Fan Li, PR director of Bottle Planet, which owns Jiang Xiao Bai. 'We are embracing changes in the market.'
To ensure their legacy continues, more Chinese liquor brands are innovating their products, with an increased focus on low-alcohol, fruit-flavoured beverages instead of grain-based baijiu, as they seek to expand their consumer base from predominantly middle-aged men to other demographics such as young urban women.
06:07
Why many young people in China are looking for a reset by flocking to the countryside
Why many young people in China are looking for a reset by flocking to the countryside
Industry insiders say the younger generation could upend China's alcohol market, where baijiu, with around 50 per cent alcohol content, has long been the mainstream tipple of choice. In a shift from traditional alcohol consumption, which revolves around social rituals, they say the younger generation is prioritising self-indulgent experiences – with drinking occasions maturing from networking obligations to emotional companionship.