Younger drinkers reshape China’s alcohol market, says IWSR
China’s alcoholic drinks market is transforming, with younger consumers, home drinking and on-demand delivery replacing business banquets and corporate entertainment as the key drivers of sales, according to new analysis from drinks market research firm IWSR.
For much of the past two decades, lavish business dinners and gifting spurred demand for premium alcohol across China. But a shift is taking place across the country, as the market is increasingly shaped by younger legal drinking age (LDA) consumers, casual social occasions, at-home drinking and rapid growth in on-demand delivery services, according to IWSR.
IWSR expects China’s beverage alcohol market to deliver mixed results in 2026. While some categories appear to have reached the bottom of their decline, others continue to struggle. Baijiu is expected to remain under pressure, while imported white spirits and ready-to-drink (RTD) beverages continue to record growth.
The outlook follows a difficult 2025, when total beverage alcohol volumes fell by 4%, or 2% excluding baijiu. Despite the overall decline, categories including imported white spirits, whisky, premium beer and RTDs showed signs of resilience.
‘Enjoyment, social occasions and value’
“After another difficult year in 2025, alcohol consumption in China is migrating away from obligation and gifting, and towards personal enjoyment, casual social occasions and value,” said Shirley Zhu, IWSR China research director. “This shift is reshaping who buys, what they buy, where they buy it and how much they are willing to spend.”
Zhu said that while younger LDA consumers are embracing casual drinking, they remain largely absent from high-end wine and most premium brown spirits. Meanwhile, older drinkers are being more selective and cautious as business occasions have yet to return.
Additionally, Zhu added that home consumption has started to grow across spirits and wine, alongside the expansion of smaller formats, on-demand delivery (O2O in China) and solo or small-group drinking.”
Changing drinking habits
The move away from business entertainment is reshaping China’s hospitality sector, with traditional high-volume venues giving way to smaller, more informal settings.
“The on-trade has been going through significant changes, shifting from large, high-energy venues towards smaller bistros, cocktail bars, fusion restaurants and live houses (venues with live music),” added Zhu. “However, business occasion dining, historically the engine of premium sales, has largely disappeared.”
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The retail landscape is also changing. Hypermarkets and supermarkets have lost ground to convenience stores as consumers increasingly favour smaller bottles and miniature formats, while ecommerce continues to grow.
“On-demand delivery is the standout growth driver, as consumers embrace instant retail from local stores as well as from small warehouses and delivery centres,” said Zhu. “Popular orders include cold beer, white spirits with mixers and ice, or a bottle of wine or whisky.”
Wine remains under pressure
Still wine continues to face significant challenges. Volumes fell by 19% during 2025, largely driven by a similar decline in red wine sales. White wine also declined, although less sharply, increasing its share of the overall wine market. Sparkling wine outside the Champagne category posted slight growth despite continued weakness in Champagne.
“Red wine is currently suffering a structural decline in China thanks to its connection with gifting and business occasions,” said Zhu. “There is no quick fix for this. But white wine is growing its share, with German Riesling and New Zealand Sauvignon Blanc leading the way due to their lighter, more aromatic styles.”
Despite this, fizz is gaining traction at hotel brunches and during casual daytime settings. One of the most significant country-level wine opportunities could be South Africa, according to Zhu, with import tariffs on South African wine were cut to zero in May 2026.
Imported spirits gain ground
Gin volumes rose by 20% in China during 2025, while vodka and rum also recorded double-digit growth from relatively small bases, according to IWSR data, while whisky recorded modest overall growth in 2025. Overall volumes increased by 3%.
The spirits categories are benefitting from “the increasing influence of cocktail culture, casual and home drinking occasions, and the penetration via all channels of lower-tier cities,” according to Zhu.
While American whiskey rose by 5%. Japanese and Irish whiskies posted double-digit gains from smaller bases, Scotch whisky fell by 1%.
Beer volumes declined by 2% during 2025, although premium products continued to outperform lower-priced offerings. Meanwhile, RTDs outperformed the wider alcohol market, remaining broadly flat thanks to their affordability, product innovation and appeal among newer drinkers.
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