White hot cheers for Chinese liquor makers

Models hold jars of liquor made by Shanxi-based Fenjiu Group at the opening ceremony of the 94th China Food and Drinks Fair in Chengdu, Sichuan province. [Photo provided to China Daily]

The baijiu sector has been experiencing difficulties since 2012. The anti-corruption and anti-extravagance drives havehurt demand for many high-end liquor products. Even the market capitalization of some A-share liquor-makers has eroded by 30 percent.

Thankfully, the domestic white liquor market began to recover when manufacturers found new growth engines, in the form of more affordable and fashionable products targeted at younger consumers.

Analysts and researchers said young consumers prefer to savor white liquor in a style that is different from their parents'.

A market research report by Nielsen Holdings Plc, which polled more than 1,500 consumers across China in February, found white liquor was among young consumers' first choices.

About 33 percent of consumers in their 20s said they intend to drink more alcohol in the future. They prefer better-looking packages and stylish presentation. Consumers in their 30s have the strongest intent to consume white liquor. They are willing to spend more on white liquor.