In China, Baijiu commands a huge share of the market. In fact, it is a $23 billion business. To put this in perspective, consider the following: wine accounts for 7% of the alcohol sold in China, beer accounts for 31%, and Baijiu accounts for a whopping 55%. In other words, one in every two alcoholic drinks sold in China is Baijiu. Put another way: Baijiu outsells all other alcohol combined. As a result of Baijiu’s stellar sales, Baijiu brands are extremely valuable. For instance, Moutai has a brand value of $2.4 billion, while Wuliangye is worth $1.6 billion, and Luzhou Laojiao is worth $1.5 billion.
The Baijiu market is fairly complex, as there are a wide variety of Baijius in the market, and each Baijiu brand fits into a specific market segment. For instance, supercheap ‘value’ Baijius comprise 18% of the Baijiu market; standard price Baijius comprise 30% of the market; the most expensive and highly regarded Baijius comprise 14% of the market.