The Maotai Myth Fades
"Major Chinese Liquor Companies Record Negative Growth for the First Time This Year"
"Need to Find Ways to Attract Younger Consumers"
At one time, China's most prestigious liquor, Maotai, was priced in the millions of won, but its price has been plummeting day after day. The Chinese liquor industry is also reportedly suffering significant damage.
On December 12, several Chinese media outlets, including China Business Daily, reported that the price of the well-known Feitian Maotai brand had fallen below 1,500 yuan (approximately 313,400 won) for the first time.
According to these reports, the wholesale price of Feitian Maotai dropped by 15 yuan from the previous day, reaching 1,495 yuan (about 310,000 won). Feitian Maotai has been on a downward trend throughout this year. In June, the price fell below 2,000 yuan (about 410,000 won) for the first time, and by October, the 1,700 yuan (about 350,000 won) level had collapsed. Notably, in early November, during large-scale discount events held by e-commerce platforms across China, Maotai was sold at prices even lower than the wholesale rate, sparking controversy.
Sina Finance also reported that the price of the renowned Feitian Maotai brand has been falling, stating, "The Maotai myth is collapsing." The report continued, "Maotai, once considered a guaranteed investment vehicle, is now causing losses for many people."
According to the reports, sluggish sales and falling prices of Maotai have sent shockwaves through the Chinese liquor industry. Major liquor companies such as Wuliangye and Yanghe have posted negative performance figures for the first time this year. The price decline has caused inventories to surge, and small and medium-sized companies are also facing difficulties.
Sina Finance cited the '2025 China Baijiu Market Research Report' released by the China Alcoholic Drinks Association, stating, "In the first half of this year, 58.1% of Chinese liquor distributors faced cash shortages due to increased inventory."
The main cause of this downturn in the liquor industry is cited as declining consumer demand. During this year's Chinese holiday periods, liquor consumption dropped by 20-30% compared to the previous year, while inventories increased by 10-20%. Another significant factor is the liquor ban imposed by the Chinese government on May 18, 2025, which prohibits the serving of cigarettes and alcohol at official meals for party and government officials. This ban was introduced following a series of incidents in Hubei Province in central China and Anhui Province in the east, where officials died after consuming alcohol.
Sina Finance noted, "For those born in the 1960s and 1970s, premium baijiu, including Maotai, was a symbol of status and a key tool for socializing, dominating traditional drinking culture." However, as generations change, Maotai has increasingly become associated with an 'old rich' mindset. Recently, China's younger generations have been consuming mainly milk tea, fruit juices, non-alcoholic beverages, and beer, making the decline in Maotai sales inevitable. The report concluded, "Finding ways to attract younger consumers is the last opportunity for change in China's liquor industry."
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