China Baijiu Slump: Giants Pivot Strategies for New Year

"De-stocking" as the Key: The 2025 Survival and Transformation Battle for China's Baijiu Giants

China's **baijiu** producers experienced a significant sales slump in 2025, as consumers scaled back spending due to concerns about economic prospects. Even market leaders are revisiting their distribution and strategies ahead of the important Lunar New Year period. In addition to Western premium spirits makers, domestic baijiu has been affected by consumer caution regarding prices and the state of the national economy. Analysts estimate that sales for the entire baijiu industry fell by nearly 15% last year, with giants such as **Kweichow Maotai**, **Wuliangye Yibin**, **Luzhou Laojiao**, **Yanghe**, and **Xinghuacun** being hit hard. Smaller brewers like **Kouzijiao** expect net profits to drop significantly in 2025, down 50% to 60% compared to 2024 results.

Digital Transformation and Direct Sales Strategies

To reverse the sales decline, major groups are actively preparing for the upcoming Lunar New Year peak season. Among them, **Kweichow Moutai** is undergoing major business adjustments, shifting more operations to its own e-commerce platform **iMoutai** and launching its flagship **Feitian Maotai** (Flying Fairy) products on the platform. The company's new chairman, **Chen Hua**, stated that the company will no longer rely on traditional distribution methods by 2026. Since 2018, Moutai has attempted to reclaim more profits by limiting sales points and strengthening price controls. However, weakened demand and prevalent speculation and hoarding have led to a drop in market prices.

Inventory Overload and Market Restructuring

Industry data highlights the pressure. According to the "2025 China Baijiu Market Mid-term Research Report" released by the China Alcoholic Drinks Association, 58.1% of liquor companies faced increased channel inventory pressure in the first half of 2025, and over half of distributors and retailers reported intensified price inversion. In the first three quarters of 2025, the combined revenue of 20 A-share listed liquor companies fell 5.90% year-on-year, and combined net profit fell 6.93%. Although alcohol consumption in China began to slow in 2022, most brewers continued to push inventory into distributor warehouses, leading to intensified price wars that ultimately affected sales volume and pricing. As of last autumn, the industry's average inventory turnover days had risen to **1,424 days**. Consequently, producers have begun taking action, including suspending shipments and controlling inventory to stabilize the market, while adjusting product structures toward mid-to-low-end products and diversifying into new categories.

Encouraging domestic demand, revitalizing consumption, and pursuing high-quality development have become the main focuses this year. As the market environment shifts, whether baijiu leaders can successfully transform amidst the challenges of 2025 will be the industry's focus.

📅 Release Date: 2026-01-12

🔗 Source: https://www.thedrinksbusiness.com/2026/01/china-baijiu-makers-battle-slump-as-new-year-sales-approach/