Jaw-Dropping: $152 Billion Worth of Baijiu Consumed Last Year, Now Dreaming of Becoming the World's Spirit [Asia Liquor Hub] ②

China's Cultural Export Vanguard: Baijiu
"Not for Shots, but for Savoring the Aroma"
Consumer Experience Experiments in Hong Kong, Asia's Liquor Hub

"The day baijiu becomes a global spirit, China will have found a new way to export its culture." <Tomy Fong, CEO of Tasting Trendies and Hong Kong liquor expert>

The 17th Hong Kong International Wine & Spirits Fair, held at the Hong Kong Convention and Exhibition Centre (HKCEC) for three days starting from November 6, was at the forefront of the rise of baijiu, China's traditional distilled liquor.

China used this event as an opportunity to secure new export channels and diversify its distribution networks, while also using it as a stage to reorganize and test various consumer experience elements such as flavor, alcohol content, and packaging. It was a showcase that encapsulated the direction of change in the Chinese liquor industry, which is now prioritizing experience over taste, story over technology, and the glass over the bottle.

At the 17th Hong Kong International Wine & Spirits Fair held from the 6th to the 8th, a visitor is looking at products from Yanghe, a Chinese baijiu manufacturer.
[Photo by Eunmo Koo]

Baijiu, the World's Most Consumed Spirit...Pursuing Overseas Markets Amid Saturated Domestic Demand

Baijiu is the most widely consumed distilled spirit in the world. According to market research firm Business Research Insights, global baijiu consumption last year reached 104.3 billion dollars (about 152 trillion won). This is more than double the consumption value of whisky (84.1 billion dollars) and vodka (50.3 billion dollars). However, unlike whisky and vodka, which are widely consumed in global markets, more than 90% of baijiu consumption is limited to the Chinese domestic market.

Moreover, the consumer base has been concentrated among older and high-income groups, while younger generations are rapidly shifting toward beer, wine, and RTDs. Under structural pressures such as saturated domestic demand and slowing growth, expanding into overseas markets has become the top priority for the baijiu industry. This is why the industry is actively promoting baijiu from Hong Kong, the hub of Asian liquor trade.

In fact, at this year's fair, six of China's top ten baijiu brands participated, including Kweichow Moutai, Wuliangye, Yanghe, Luzhou Laojiao, Jian Nanchun, and Langjiu. In particular, Moutai, China's national baijiu, enthusiastically showcased a variety of limited edition products in addition to its regular offerings, exciting not only new consumers but also existing Moutai fans. Moutai's brewing technique has been registered as a National Intangible Cultural Heritage. A Moutai representative emphasized, "The Moutai brewing process involves five main stages, 30 procedures, and 165 technical steps, taking at least five years to produce the final product," adding, "As a result, it boasts a prominent sauce aroma and a taste that is elegant, delicate, and mellow."

At the 17th Hong Kong International Wine & Spirits Fair held from the 6th to the 8th, Tomy Fong, a Hong Kong liquor expert and CEO of Tasting Trendies, explained the baijiu trend.
[Photo by Eunmo Koo]

From Drinking Methods to Pairing: Baijiu's Strategy of Experience

The rise of baijiu in China is not simply about expanding exports, but is a process of "Cultural Translation." The Chinese liquor industry is attempting a shift "from bottle to glass," "from chemical formula to aroma," and "from domestic to global." As domestic consumption of baijiu has reached its limits, the drive toward globalization is now an experiment in national industrial strategy, going beyond mere brand marketing.

At the 17th Hong Kong International Wine & Spirits Fair held from the 6th to the 8th, a visitor is tasting a product from Wuliangye, a Chinese baijiu manufacturer.
[Photo by Koo Eunmo]

To this end, the baijiu industry has also changed its pairing strategy. For example, baijiu, once thought to pair only with Chinese cuisine, is now being served alongside curry, blue cheese, pizza, and burgers. Its strong aroma and high alcohol content are said to balance out the fatty components of spices and cheese, creating a new harmony. Some restaurants in Hong Kong and Shanghai already hold regular "baijiu pairing dinners" to attract foreign customers.

Experts agree that the key to baijiu's globalization is redesigning the "experience." Tomy Fong stated that the "ritual"-the way baijiu is consumed-needs to change. Instead of the traditional custom of emptying a small glass in one go, the culture should shift toward a tasting experience that focuses on the aroma, similar to whisky. Simply switching to tulip-shaped glasses and slowing down the pace of drinking can transform the experience. The sentiment that "baijiu is not a drink for games, but a spirit to be savored slowly" resonated throughout the venue.

"By the glass" was also suggested as another breakthrough. Selling baijiu by the glass at bars and restaurants could make it much easier for newcomers to try. Some hotels and bars in Hong Kong have already begun offering baijiu in "flights," similar to whisky or wine. Fong commented, "Tasting by the glass, rather than by the expensive bottle, will be the first gateway to brand expansion."