Baijiu (literally means ‘white wine’) is a distilled alcoholic beverage unique to China, and is created by distilling aged starch or sugar-rich ingredients. It is either colorless or a very slight shade of yellow, and has a pleasant smell with a sweet and refreshing taste. The higher alcoholic content in Baijiu makes its taste improve with age and adds a layer of complexity to it as well.

Chinese Baijiu production volumes reached over 13 billion litres in 2018. Retail volumes and figures reached over 5 billion litres and 760 billion CNY respectively. Sales income was recorded at almost 60 billion CNY. The Chinese Baijiu industry is currently still in a state of decline, but there are signs that the industry is primed to make a comeback in the near future.

The market for high-end Baijiu is showing signs of stability as is the demand for Baijiu which is also the case for the market for low-end Baijiu products. Brand concentration is expected to become higher, and the previously neglected market for mid-range Baijiu products is expected to become the main field of competition.

China is the most populated country in the world and as such is an ideal market for the consumption of Baijiu. The Chinese population has been continuously growing in recent years with main consumers being 15-64-year-old men and thus providing ample room for development.

Figure No.	Figure Title
Figure 1	Output of Baijiu industry in China, 2015-2018
Figure 2	Total output value of Baijiu in China, 2015-2018
Figure 3	Development of Baijiu, 2015-2018

Table No.	Table Title
Table 1	Comparison between Baijiu products
Table 2	Moutai Corporation sales revenues
Table 3	Top 10 brands