China's liquor industry brews innovation for young consumers

In trendy bars across China, young customers are raising glasses of fruit-infused spirits and tea-pairing craft beers, a result of youth-friendly innovations being pursued by the liquor industry.

During the 2025 Chishui River Forum, which took place earlier this week in Maotai Town, southwest China's Guizhou Province, a group of Chinese and foreign liquor insiders and experts shared their insights on new trends in liquor consumption. The infusion of tea and liquor, both iconic elements in Chinese culture, has emerged as a standout trend.

According to the China Tea Marketing Association, domestic tea sales reached nearly 330 billion yuan (about 46.5 billion U.S. dollars) in 2024, with the industry's economic scale projected to surpass 1.13 trillion yuan in 2025.

Wang Qing, president of the association, said the integration of tea and liquor has evolved beyond simple blending to a deep fusion of brands, culture and consumption scenarios.

In east China's Fujian Province, famous for its tea industry, a local company in 2024 introduced a product that incorporated white tea into its fermentation process.

Mingniang, a blended drink jointly developed by the Hangzhou Tea Research Institute and well-known Chinese liquor producer Luzhou Laojiao, saw its sales exceed 1 billion yuan in 2024.

Meanwhile, tea-flavored beer is rapidly gaining traction. Wang noted that hits like green tea-infused craft beer and jasmine tea craft beer, born from a collaboration between Beijing's century-old tea brand Wuyutai and the brewery Shuanghesheng, have expanded customer bases and injected fresh vitality into legacy names.

"I prefer the fresher taste and lower alcohol content of tea beer compared to the strong kick of traditional spirits. It makes social gatherings more relaxing," said a young consumer surnamed Wang.

Kweichow Moutai, China's leading liquor producer headquartered in Maotai Town, emphasized its strong focus on innovation. The company, famed for its signature liquor, has rolled out a digital platform for direct engagement with young consumers.

Through cultural creations like Zodiac-themed liquors and co-branded products featuring ancient Dunhuang culture, the company is reinforcing its brand value and forging deeper emotional bonds.

Such innovation reflects a global pattern. During the forum in Guizhou, Valeria Cristina Natal, CEO of Brazil's Distillerie Stock, noted that new beverages like sugarcane wine have been well-received by young people in Brazil.

Natal said that Gen Z had an increased focus on health, practiced conscious control of alcohol intake, and valued self-control in social settings. This rational drinking trend was fueling the global rise of low-alcohol, alcohol-free and flavor-infused ready-to-drink beverages, she added.

Beyond product innovations, immersive experiences have been created to engage the youth. In Guizhou, a major baijiu-producing region, authorities are promoting the integration of liquor and tourism.

Wang Xianxi, a senior commerce official in Guizhou, said the province aims to develop wineries, food streets, scenic spots and themed hotels that combine sightseeing, entertainment and experiences. The goal is to convert visitor traffic into economic value and present fine liquor as a bridge for Gen Z to connect with a better life.

A mid-2025 research report from the China Alcoholic Drinks Association identified targeting young consumers as a key trend amid evolving market competition and consumer habits. The report noted that 21.1 percent of liquor producers planned to increase investment in youth-oriented products as part of their 2025 strategy.