China’s Iconic Baijiu Spirit Finds New Life Among Younger Drinkers

Written: August 2, 2025, 14:00 (U.S. Eastern Time)

The fiery Chinese spirit known as baijiu is undergoing a quiet transformation. Once a staple of government banquets and business dinners, this high-proof liquor is being reimagined by producers and marketers to suit the evolving tastes of younger, health-conscious consumers in China and beyond.

A Cultural Icon with Deep Roots

Baijiu (白酒), literally meaning “white liquor,” has long held a central place in Chinese culture. Distilled primarily from sorghum, baijiu can contain up to 60% alcohol and is traditionally consumed in ceremonial toasts and social gatherings.

Moutai, a premium variety of baijiu produced in Guizhou province, is considered China’s national liquor. It famously played a diplomatic role in 1974 when then-U.S. Secretary of State Henry Kissinger toasted with Chinese leader Deng Xiaoping. According to official U.S. documents, Kissinger joked, “If we drink enough Moutai, we can solve anything,” to which Deng replied that China would have to increase production.

Despite its cultural significance, baijiu’s popularity has waned in recent years due to economic pressures, shifting social norms, and generational change.

Declining Sales Reflect a Changing Market

According to a report by the China Alcoholic Drinks Association, production of baijiu is expected to decline for the eighth consecutive year in 2025. One of the most visible signs of this trend is the 36% drop in prices for Feitian Moutai — a leading brand — over the past year.

Several factors contribute to this trend. China’s slowing economy has led to a reduction in large-scale banquets and corporate events where baijiu is traditionally consumed. Moreover, ongoing anti-corruption efforts by the Chinese Communist Party have cracked down on extravagance at official functions. In May 2025, the government issued stricter rules banning the consumption of alcohol and tobacco at work-related meals.

These policy shifts, combined with broader lifestyle changes, are reshaping China’s alcohol landscape.

Younger Consumers Seek Alternatives

Modern Chinese drinkers are prioritizing health and personal choice over tradition. The idea that alcohol is essential for socializing is losing ground.

“There is an old saying in China: ‘No banquet is complete without alcohol,’” said 30-year-old Chi Bo while enjoying cocktails with friends in Beijing’s Sanlitun district. “But today, people don’t want to drink unless they have to. You can still talk, laugh, and connect without it.”

Younger consumers are increasingly drawn to wines, imported spirits like whiskey, or non-alcoholic beverages. They’re also more conscious of wellness, leading to a preference for lower-alcohol options or abstinence altogether.

Innovation Fuels a Baijiu Revival

In response, baijiu producers are experimenting with ways to make their product more accessible and appealing. One notable example is a collaboration between Kweichou Moutai and China’s Luckin Coffee. In 2024, they launched a Moutai-flavored latte that reportedly sold 5 million cups a day across China.

Baijiu-based cocktails are also appearing on bar menus in major cities. Bartenders and beverage creators are infusing the traditional liquor into contemporary drink recipes that blend Eastern heritage with global cocktail culture.

“There are so many choices right now,” said Jim Boyce, a Canadian writer and wine expert who founded World Baijiu Day, an annual celebration that promotes the spirit globally. “Baijiu is no longer stuck in the past. It’s just fighting for attention in a crowded market.”

Brands Target the Youth Market with Flavor and Design

One standout in baijiu’s modernization is Jiangxiaobai, a brand based in Chongqing. Launched with young adults in mind, Jiangxiaobai offers fruit-infused varieties with alcohol content under 10%, presented in sleek, minimalist bottles.

The packaging is designed to resonate emotionally, featuring poetic taglines such as: “Unspoken words. In my eyes, in drafts, in dreams, or downed in a drink.”

Fan Li, Jiangxiaobai’s marketing director, explained their approach: “Our products are not just about taste, but about lifestyle. We reflect the aspirations and values of the younger generation.”

This emotional branding has helped Jiangxiaobai carve out a unique niche in a market saturated with tradition.

Cultural Relevance Through Subtle Reinvention

Shirley Huang, a 27-year-old marketing executive, had never tried baijiu before. But while out with friends in Sanlitun on a recent Friday night, a baijiu-based cocktail caught her eye.

“Baijiu is quietly making its way into our lives,” she said. “It may not appear as itself, but it reemerges in new forms.”

This subtle repositioning allows the spirit to maintain its cultural essence while meeting modern consumer expectations. The younger generation may be rejecting rigid drinking rituals, but they are not turning away from Chinese identity. Instead, they are shaping a new relationship with an old tradition.

Looking Ahead: A Balanced Future for Baijiu

Despite declining sales and shifting preferences, baijiu’s future isn’t bleak. It’s evolving. Brands that innovate with lower alcohol content, creative flavor profiles, and youth-oriented branding are gaining traction.

Moreover, baijiu’s international profile is slowly expanding. Events like World Baijiu Day, coupled with increased global curiosity about Chinese cuisine and culture, are creating opportunities for the spirit to grow beyond its borders.

While traditionalists may mourn the fading of old customs, this reinvention signals a hopeful future where baijiu remains relevant — not as a relic, but as a resilient symbol of adaptation.

Conclusion

As younger generations reshape China’s drinking culture, baijiu producers are embracing innovation to stay competitive. Whether it’s served in a shot glass at a state dinner or mixed into a trendy cocktail in Beijing’s nightlife scene, baijiu is proving that even a centuries-old tradition can find new life in the modern age.