Baijiu Market
                     Baijiu Market Strategic Analysis to Understand the Competitive Outlook of the Industry, 
2025
Market Overview
Baijiu is a popular and traditional fermented alcoholic drink consumed in China. It is a clear and 
transparent drink named after the Chinese word ‘bai’, which means white. The production of baijiu 
involves preparation, daqu making, alcoholic fermentation, distillation, and aging. Sorghum is the 
main raw material used in the production of baijiu. Baijiu is different from other liquor because it is 
contained in mud pit or clay vessel unlike whisky which are contained in wooden barrels during the 
process of sugar conversion and fermentation.
Among the crop type, sorghum cereal segment accounted for the highest market share in the global 
baijiu market in 2017. This is owing to high preference of sorghum as a raw material due to its 
distinct flavor compared to other ingredients used to manufacture baijiu.
Among the type of flavor, strong-flavor segment held dominant position in the market in 2017. This
is owing to characteristics such as fragrant flavor, soft mouth feel, and aftertaste of strong-flavor 
baijiu. The segment is projected to hold dominant position in the market over the forecast period.
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Market Dynamics
Increasing preference of baijiu among the populace and rising disposable income of consumers are 
key factors driving the global baijiu market growth. The drink can be stored for longer duration 
without any change in taste. Although, sorghum is a popular ingredient used to produce baijiu, other
ingredients such as wheat, barley, rice, millet, and corn can also be used. Consumption of small 
amount of baijiu reduces the risk of Alzheimer’s disease, reduces the uric acid concentration in 
serum, helps to improves serum lipid profiles, decreases platelet aggregation, and reduces the risk 
of cardiovascular diseases. According to a report by the U.S. Department of Agriculture (USDA), 
China Alcoholic Drinks Association stated that consumption of baijiu in 2017 grew at the rate of 9%
from 2016.
Furthermore, increase in production of wheat and maize is expected to boost the supply of raw 
materials for production of baijiu and helps in growth of the global baijiu market. According to a 
statistics of Food and Agricultural Organization (FAO), the global production of maize was 1,060 
million tons in 2016 and grew at the rate of 4.9% from 2015. Moreover, the global production of 
wheat was 749 million tons in 2016 and grew at the rate of 1.7% from 2015.
However, baijiu contains high volume of alcohol (up to 65%) and its excessive consumption may 
lead to damage of liver and pancreas, experience of numbness, and affect the immune and digestive 
systems.
Market Taxonomy
On the basis of source, the global baijiu market is segmented into:
•Sorghum
•Wheat
•Barley
•Corn
•Rice
On the basis of flavor, the global baijiu market is segmented into:
•Strong-flavor
•Sauce-flavor
•Light-flavor
•Rice-flavor
•Sesame-flavor
•Chi-flavor
•Others (Te-flavor, Feng-flavor, and others.)
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