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Since 2005, market deregulation, product improvements and a resurgence in Chinese alcohol's popularity has boosted the Chinese Alcohol Production industry's performance. Over the past decade, the industry has experienced steady, rapid growth despite output dropping in recent years due to increasing government safety and quality regulations, and manufacturers' increased focus on quality over quantity. Consumers are increasingly demanding high-end alcohol products, which has prompted alcohol companies to switch gears to focus on top shelf and premium alcohol production.Industry revenue is expected to increase at a CAGR of 5.8% over the five years through 2024, to $116.7 billion. This includes anticipated revenue growth of 7.3% in the current year. Imports and exports of Chinese alcohol products are low, and domestic demand is approximately equal to industry revenue. With mid- and high-end alcohol now comprising a larger proportion of industry output and revenue, industry profitability has risen at a higher rate than revenue. Profit is expected to account for 33.7% of industry revenue in 2024.Industry revenue is projected to rise at a CAGR of 5.5% over the five years through 2029, to $152.3 billion. With higher incomes and growing health consciousness, demand for high-concentration liquor is gradually decreasing. Growth is forecast to stabilize in the coming years as the industry enters a period of consolidation and consumer demand drops. External competition is anticipated to become a serious challenge for the industry as more and more young people choose wine, beer and soft drinks over Chinese distilled alcohol.
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IBISWorld's research coverage on the Chinese Alcohol Production industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
The Chinese Alcohol Production industry in China operates under the industry code 1521. Firms in the Chinese Alcohol Production industry manufacture traditional Chinese alcoholic drinks made from fine grain and ferments of different types and containing 18.0% to 60.0% alcohol. Three types of natural yeast are used to prepare various alcohols through cooking, fermentation, distillation, storage and blending processes. Related terms covered in the Chinese Alcohol Production industry in China include dense-flavored alcohol, light-flavored alcohol and soy-flavored alcohol.
Products and services covered in Chinese Alcohol Production industry in China include Dense-flavored alcohol , Soy-flavored alcohol and Light-flavored alcohol .
Companies covered in the Chinese Alcohol Production industry in China include Kweichow Moutai Co., Ltd., Wuliangye Yibin Co., Ltd. and Shanxi Xinghuacun Fen Wine Factory Co., Ltd.
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Chinese Alcohol Production industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Chinese Alcohol Production industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Chinese Alcohol Production industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Chinese Alcohol Production industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
The Companies chapter covers Key Takeaways, Market Share and Companies in the Chinese Alcohol Production industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Chinese Alcohol Production industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Chinese Alcohol Production industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Chinese Alcohol Production industry in China.
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The market size of the Chinese Alcohol Production industry in China is $116.7bn in 2026.
There are 959 businesses in the Chinese Alcohol Production industry in China, which has declined at a CAGR of 4.0 % between 2020 and 2025.
The Chinese Alcohol Production industry in China is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
The Chinese Alcohol Production industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
The market size of the Chinese Alcohol Production industry in China has been growing at a CAGR of 5.8 % between 2020 and 2025.
Over the next five years, the Chinese Alcohol Production industry in China is expected to grow.
The biggest companies operating in the Chinese Alcohol Production industry in China are Kweichow Moutai Co., Ltd., Wuliangye Yibin Co., Ltd. and Shanxi Xinghuacun Fen Wine Factory Co., Ltd.
Dense-flavored alcohol and Light-flavored alcohol are part of the Chinese Alcohol Production industry in China.
The company holding the most market share in the Chinese Alcohol Production industry in China is Kweichow Moutai Co., Ltd..
The level of competition is high and increasing in the Chinese Alcohol Production industry in China.