INDUSTRIES

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MARKETSBaijiuindustryinChinaCHAPTER

01SpiritsmarketoverviewRevenueofthespiritsmarketworldwidein2023,bycountry(inmillionU.S.dollars)Spiritsmarketrevenueworldwide2023,bycountryRevenueinmillionU.S.dollars60,000

80,000

100,000020,00040,000120,000140,000160,000180,000ChinaUnitedStatesJapan161,417.0195,167.758,541.74India28,637.52UnitedKingdomMexico15,867.3913,747.4412,451.8311,511.1411,080.8410,840.929,927.71ThailandCanadaGermanyFrancePhilippinesBrazil8,970.55Spain7,366.953Description:Thecombinedrevenuerankinginthe'Spirits'segmentofthealcoholicdrinksmarketisledbyChinawith161.4billionU.S.dollars,whiletheUnitedStatesisfollowingwith95.2billionU.S.dollars.Incontrast,Swedenisatthebottomoftherankingwith1.4billionU.S.dollars,showingadifferenceof160billionU.S.dollarstoChina.ReadmoreNote(s):Worldwide;Jan1sttoDec31st2023Source(s):Statista;StatistaConsumerMarketInsightsLeadingimportersofspiritsworldwidein2023,bycountry(inmillionU.S.dollars)Globalleadersofspiritimportsin2023,bycountry12,00010,0008,0006,0004,0002,000011,323.782,823.47China2,117.531,792.27Germany1,542.8France1,271.531,203.121,104.87Spain1,034.31Canada1,031.77ItalyUnitedStatesSingaporeUnitedKingdomNetherlands4Description:TheUnitedStateswasthebiggestspiritsimporterintheworldin2023.Alltold,theU.S.importedspiritsvaluedat11.3billionU.S.dollarsinthatyear.Chinawasthenextlargestimporter,withimportsvaluedataround2.82billiondollars.ReadmoreNote(s):Worldwide;2023Source(s):UNComtradeRevenueofthespiritsmarketinChinafrom2019to2029(inmillionU.S.dollars)RevenueofthespiritsindustryinChina2019-2029250,000200,000150,000100,00050,0000201920202021202220232024202520262027202820295Description:Thecombinedrevenueinthe'Spirits'segmentofthealcoholicdrinksmarketinChinawasforecasttocontinuouslyincreasebetween2024and2029byintotal27.4billionU.S.dollars(+16.57percent).Afterthetenthconsecutiveincreasingyear,thecombinedrevenueisestimatedtoreach193billionU.S.dollarsandthereforeanewpeakin2029.Notably,thecombinedrevenueofthe'Spirits'segmentofthealcoholicdrinksmarketwascontinuouslyincreasingoverthepastyears.

ReadmoreNote(s):China;2019to2029Source(s):Statista;StatistaConsumerMarketInsightsVolumeofthespiritsmarketinChinafrom2019to2029(inmillionlitres)VolumeofspiritsinChina2019-202918,00016,00014,00012,00010,0008,0006,0004,0002,0000201920202021202220232024202520262027202820296Description:Thecombinedvolumeinthe'Spirits'segmentofthealcoholicdrinksmarketinChinawasforecasttocontinuouslyincreasebetween2024and2029byintotal770.6millionlitres(+5.04percent).Afterthetenthconsecutiveincreasingyear,thecombinedvolumeisestimatedtoreach16billionlitresandthereforeanewpeakin2029.Notably,thecombinedvolumeofthe'Spirits'segmentofthealcoholicdrinksmarketwascontinuouslyincreasingoverthepastyears.

ReadmoreNote(s):China;2019to2029Source(s):Statista;StatistaConsumerMarketInsightsCHAPTER

02ProductionProductionvolumeofbaijiuinChinafrom2014to2024(inbillionliters)ProductionofbaijiuChina2014-20241613.58141210813.1312.5711.988.717.867.417.166.7164.494.15420201420152016201720182019202020212022202320248Description:In2024,Chinaproducedapproximately4.15billionlitersofbaijiu,droppingfrom4.49billionlitersinthepreviousyear.TheproductionvolumeofbaijiuinChinahascontinuouslydecreasedsince2016whenthenumberofmanufacturingenterprisesdeclined.ReadmoreNote(s):China;2014to2024Source(s):;NationalBureauofStatisticsofChina;NetEaseProductionofbaijiuinChinafromDecember2022toDecember2024(in1,000kiloliters)BaijiuproductionpermonthinChina2022-20241,2001,1241,0008006004002000825741549498469474432420411374378374375358

3613633473402872682612569Description:InDecember2024,Chinaproducedaround474thousandkilolitersofbaijiu.Thisrepresentedadecreaseof7.6percentcomparedtothefigureforthesameperiodin2023.

ReadmoreNote(s):China;December2022toDecember2024Source(s):NationalBureauofStatisticsofChinaNumberofbaijiumanufacturingenterprisesabovedesignatedsizeinChinafrom2015to2023NumberofbaijiumanufacturersinChina2015-20231,8001,5931,5781,5631,6001,4001,2001,0008001,4451,1761,040980965963600400200020152016201720182019202020212022202310Description:Asoftheendof2023,Chinarecordedatotalof980baijiumanufacturersabovethedesignatedsize,increasingfrom963attheendof2022.Themarketishighlyconcentrated,withtheCR5amountingtoover43percentin2023.

ReadmoreNote(s):China;2015to2023Source(s):E;WeiboyiProductionshareofSichuanprovinceinChina'stotalbaijiuproductionfrom2013to2023ShareofSichuanprovinceinChina'sbaijiuproductionvolume2013-202360%50%40%53.27%51.86%49.65%46.67%41.13%31.08%29.64%28.25%30%20%10%0%27.43%27.84%27.68%2013201420152016201720182019202020212022202311Description:In2023,Sichuanprovinceaccountedforapproximately27.68percentofChina'sbaijiuproduction,fallingdramaticallyfrom51.86percentinthepreviousyear.SichuanprovincehasbeenChina'sleadingbaijiuproductionregionsince2007.ReadmoreNote(s):China;2013to2023Source(s):BureauofStatisticsofSichuanprovince;NationalBureauofStatisticsofChina;S;CHAPTER

03RetailandtradeSalesrevenueofbaijiuinChinafrom2013to2023(inbillionyuan)TurnoverofbaijiumarketinChina2013-2023800756.37006005004003002001000662.65612.6603.3583.6565.4561.8555.9536.4525.9501.82013201420152016201720182019202020212022202313Description:In2023,baijiu'ssalesrevenueinChinatotaled756.3billionyuan,increasingbyaround90billionyuancomparedtothepreviousyear.Thatyear,around6.29billionliterbaijiuwasproducedinChina.ReadmoreNote(s):China;2013to2023Source(s):CADA;MOFCOMChinaDistributionoftheChinesebaijiuindustryin2023,bytypeofaromaRevenuebreakdownofbaijiuindustryinChina2023,byaromaOthers10%Lightaroma(Qingxiang)15%Strongaroma(Nongxiang)50%Saucearoma(Jiangxiang)25%14Description:In2023,NongxiangflavorremainedtheleadingaromatypeintheChinesebaijiumarket,accountingforabout50percentofthemarket.However,strongaromabaijiuhasbeenlosingground,whilelightaromaproductshavebecomeincreasinglypopular,especiallyamongyoungpeople.ReadmoreNote(s):China;2023Source(s):TOMGroupLimitedDistributionofthesalesvalueofbaijiuinChinain1sthalf2024,bypricerangeShareofsalesvalueofbaijiuinChinaH12024,bypricelevel500-800yuan7%800-1500yuan12%300-500yuan29%100-300yuan22%Over1500yuan12%Upto100yuan18%15Description:Inthefirsthalfof2024,baijiupricedbetween300and500yuanaccountedforaround29percentofthetotalsalesofbaijiuinChina.Duringthatperiod,low-andmid-endbaijiuproductswhichcostlessthan500yuantookuparound69percentofthemarket.ReadmoreNote(s):China;H12024Source(s):CADA;China'sexportvolumeofbaijiufrom2014to2023(inmillionliters)ExportvolumeofbaijiufromChina2014-2023201816141210817.2116.5516.3316.3916.3616.1816.021514.2513.216420201420152016201720182019202020212022202316Description:In2023,Chinaexportedaround15millionlitersofbaijiu,decreasingfromabout16.36millionlitersinthepreviousyear.Thatyear,Chinaimportedaround120millionlitersofspirits.ReadmoreNote(s):China;2014to2023Source(s):ChinaCustoms;China'sexportvalueofbaijiufrom2014to2023(inmillionU.S.dollars)ExportvalueofbaijiufromChina2014-20239008008007006005004003002001000716665.16656.65564.83467.89470.39459.91449.29327.44201420152016201720182019202020212022202317Description:In2023,Chinaexportedaround15millionlitersofbaijiu,withanexportvalueofabout800millionU.S.dollars.Themarkethasrecoveredfromthepandemic.ReadmoreNote(s):2014to2023Source(s):ChinaCustoms;CHAPTER

04MarketleadersMarketshareofthefivelargestbaijiuproducersinChinafrom2018to2023MarketconcentrationratioofbaijiuindustryinChina2018-202350%45%40%43.5%41.9%40%34.9%35%30%25%20%15%10%5%33.2%30.5%0%20182019202020212022202319Description:TheconcentrationratioofChina'sbaijiuindustryhasincreasedsteadilyinthepastyears.In2023,thefivelargestbaijiumanufacturerscontributedaround43.5percentofthetotalsalesofbaijiu,growingfrom42.1percentin2022.KweichowMoutaiandWuliangyewerethetwoleadingChinesebaijiuproducers.ReadmoreNote(s):China;2018to2023Source(s):E;WeiboyiDistributionofthebaijiumarketinChinain2023,bymanufacturingenterpriseBreakdownofbaijiumarketinChina2023,bycompanyKweichowMoutai20.24%Others55.57%Wuliangye11.24%Yanghe4.54%ShanxiFenjiu4.26%LuzhouLaojiao4.15%20Description:In2023,KweichowMoutaiwasChina'slargestbaijiumanufacturerwithamarketshareof20.24percent,followedbyWuliangyeandYanghe.BaijiuisthemostprominentspiritinChina,withover40percentofthemarketcontrolledbythefivelargestplayers.ReadmoreNote(s):China;2023Source(s):DongfangQB;SohuRevenueofleadinglistedbaijiumanufacturingenterprisesinChina2023,bycompany(inbillionyuan)RevenueofmajorlistedbaijiucompaniesChina2023,bycompanyRevenueinbillionyuan020406080100120140160KweichowMoutaiWuliangyeYibin147.783.27JiangsuYangheBreweryShanxiXinghuacunFenWineFactoryLuzhouLaojiao33.1331.9330.23AnhuiGujingDistilleryCompanyLimitedBeijingShunxin20.2510.5910.1JiangsuKing'sLuck21Description:In2023,KweichowMoutai,oneofthemostfamousbaijiumanufacturersinChina,recordedarevenueofabout148billionyuan.WuliangyeYibinfollowedwithasalesrevenueof83.27billionyuan.Theeightlargestbaijiumanufacturersaccountedforover90percentofthetotalrevenueof20majorlistedbaijiucompaniesinChina.ReadmoreNote(s):China;2023Source(s):E;Varioussources(BeijingBusinessToday);Website()RevenueofKweichowMoutaiCo.,Ltd.from2013to2023(inbillionyuan)RevenueofKweichowMoutai2013-2023160147.6914012010080124.1106.1994.9285.4373.6458.2220176038.8620164032.66201530.92201331.57201420020182019202020212022202322/statistics/284798/operating-income-of-kweichow-moutaiIn2023,KweichowMoutaigeneratedarevenueofabout147.7billionyuan,anincreasefromapproximately124billionyuaninthepreviousyear.KweichowMoutaiisChina'slargestbaijiuproducerandhadmorethan33,000employeesthatyear.

ReadmoreNote(s):China;2013to2023Source(s):KweichowMoutai;SRevenueofChinesespiritdistilleryWuliangyeYibinfrom2013to2023(inbillionyuan)RevenueofChinesespiritdistilleryWuliangyeYibin2013-20239080706050403083.2773.9766.2157.3250.1240.0330.19201724.72201324.54201621.66201521.0120142010020182019202020212022202323Description:In2023,theChinesespiritdistilleryWuliangyeYibingeneratedarevenueofnearly83.3billionyuan.Thisindicatedanincreaseinrevenuebyaround12.5percentcomparedtothepreviousyear.

ReadmoreNote(s):China;2013to2023Source(s):Sohu;WuliangyeYibinOperatingrevenueofChineseliquormanufacturerLuzhouLaojiaoCompanyLimitedfrom2016to2023(inbillionyuan)OperatingrevenueofLuzhouLaojiaoCo.,Ltd.inChina2016-202335302530.2325.1220.64201510516.6515.8213.06201810.3920178.63020162019202020212022202324Description:In2023,thetotaloperatingrevenueofLuzhouLaojiaoCompanyLimitedamountedtoapproximately30.23billionyuan.LuzhouLaojiaoisawellknownliquormanufacturerinChina.ReadmoreNote(s):China;2016to2023Source(s):LuzhouLaojiao;SohuCHAPTER

05ConsumptionAverageannualconsumptionexpenditurepercapitaonbaijiuinChinain2023,byprovinceorregion(inyuan)ConsumerspendingonbaijiuinChina2023,byprovinceConsumptionpercapitainyuan02004006008001,0001,2001,4001,6001,800BeijingShanghaiTibet1,6011,4071,093Hainan767QinghaiHenanTianjinJiangsuGansu673662660645609Hubei600593ShandongInnerMongoliaAnhui58457226Description:In2023,theaverageconsumptionexpenditurepercapitaonbaijiuinBeijingamountedto1,601yuan,thehighestamongallregionsinChina.Shanghaifollowed,withanaveragepercapitaspendingof1,407yuan.ReadmoreNote(s):China;2023Source(s):;WeiboyiDistributionofbaijiuconsumersinChinafrom1stquarterto3rdquarter2024,byagegroupBreakdownofbaijiudrinkersinChinaQ1-Q32024,byage18-24years8%25-29years14%40yearsandabove31%30-34years23%35-39years24%27Description:Inthefirstthreequartersof2024,around31percentofthebaijiudrinkersinChinawereatleast40yearsold.Meanwhile,GenerationZconsumersaccountedfor22percentofthetotalbaijiuconsumers.

ReadmoreNote(s):China;Q1toQ32024Source(s):CBNData;Digitaling;MiaozhenSystems;WeiboyiLeadingtypesofbaijiupreferredbyconsumersinChinaasofJuly2024,bytypeofaromaLeadingtypesofbaijiuconsumedbyChinesein2024,byaromaShareofrespondents20%0%10%30%40%50%Qingxiang(lightaroma)Jiangxiang(saucearoma)Nongxiang(strongaroma)Mixiang(ricearoma)Mixedaroma55.78%51.33%44.67%31.11%28.89%28Description:Accordingtoa2024survey,qingxiang(lightaroma)wasthemostpopulartypeofbaijiuamongChineseconsumers,witharound55.78percentofrespondentspreferringit.BaijiuisacleardistilledspiritoriginatinginChinaandoneofthemostpopularalcoholicdrinksamongtheChinese.ReadmoreNote(s):China;July2024;1,162respondentsSource(s):iiMediaResearch;SohuMostconsideredfactorsinpurchasingbaijiuinChinaasofJuly2024Leadingdecision-makingfactorsinbuyingbaijiuChina2024Shareofrespondents0%5%10%15%20%25%30%35%40%45%50%48%55%TasteBrandrecognitionReputationPrice45.78%42.89%41.78%Years41.56%PackagedesignEffect39.78%36.67%29/statistics/1314947/china-leading-criteria-in-choosing-baijiuAccordingtoasurveyconductedinJuly2024inChina,around48percentofrespondentsconsideredthetasteasignificantcriterioninbuyingbaijiu.About46percentofrespondentssaidtheyconsideredthebrandrecognitionwhenchoosingbaijiu.ReadmoreNote(s):China;July2024;1,162respondents;multipleanswersallowedSource(s):iiMediaResearch;SohuLeadingoccasionsforconsumingbaijiuamongconsumersinChinaasofJuly2024MajoroccasionstodrinkbaijiuinChina2024Shareofrespondents20%

25%0%5%10%15%30%35%40%45%50%55%FamilygatheringMeetingwithfriendsBusinessoccasion49.11%48%42.22%Wedding/birthdaybanquetsSolodrinking39.11%34.67%MeetingwithcolleaguesCouple'sda