As China’s traditional spirits and premium wines grapple with declining consumption, a significant shift is under way across the beverage landscape. This three-part series examines the challenges faced by Maotai town as its once-coveted baijiu liquor loses its lustre, the impact of economic shutdowns on European wine imports, and the rise of craft beer as a budget-friendly alternative for consumers seeking quality without breaking the bank.
Despite the sweltering heat, the pavement outside a new Beijing outpost of craft beer pub Urbrew was overflowing with customers this summer – a scene in sharp contrast with reports of an alcohol market battered by reductions in discretionary spending by China’s drinkers.
“I think many people are strapped for cash after the pandemic,” said store manager Gou Zihan. “They can’t afford the expensive stuff any more, so they stick to wallet-friendly options like beer.”
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Yet even with the widespread belt-tightening, the glasses at Urbrew were not filled with the country’s lower-cost industrial brews. Instead, customers sipped complex wheat beers, India pale ales and experimental varietals with eccentric infusions such as passion fruit or hawthorn.
Most were priced at over 20 yuan (US$2.80) each, well over the per-unit price of 4 yuan a mass-market beer often commands at local supermarkets. For Gou’s customers, the quality and variety justified the mark-up.
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Beer has proven a surprisingly resilient section of China’s alcohol market amid high economic uncertainty. Production grew year on year in the first three quarters of 2025 and several industry giants reported steady results, even as demand falls for more luxurious items like baijiu – China’s traditional sorghum spirit – and imported European wines.
But as consumers hunt for value, they are also no longer settling for the basics, pushing breweries to adapt. “Premiumisation”, the development of products higher in perceived quality as well as price, has emerged as the industry’s primary method to ensure continued growth in this new landscape.