It's important to know the Baijiu market has a clear separation between the old and the new. The old-style focuses on high ABV. (50% - 65%) and strong thick aromas, 70% of the focus being on the smell. On the other hand, the newer style is to find purer flavors and aromas while lowering the ABV. to 40% and below; making Baijiu good for mixing. The other and more important features of the "New" Baijiu is the branding efforts of the freshman class of Baijiu companies(such as Jiang Xiao Bai) to build products for the younger generations. Lifestyle branding is taking over the Baijiu market to attract the Millenials that are of course of legal drinking age.
Baijiu has entered most countries with modest efforts and minimal results in the past; so it’s still relatively unknown in the U.S. market, but, mark my words,
“Baijiu is going to make HUGE waves in the spirit business in the next couple of years!”
There is still a lot of land to grab! Don't be the distributor or bar owner on the tail end of the wave! The big boys like Southern Glazer's and Diageo will come and eat the market space up quick!
1. Millennials are the biggest market :
They are more likely to try new products and are adventurous and experience seeking by nature. They are also the most health-conscious consumers. New, adventurous, low calorie, gluten-free and kosher – Baijiu is ticking a lot of the millennial boxes.
2. It's slowly taking hold across America and Europe
Don’t be the last to catch on. Baijiu bars are springing up in New York, Los Angeles, Seattle and more in the past 18 months. London now hosts a Baijiu Cocktail Week to coincide with Chinese New Year – which attracts more than 700,000 people to the city. The Top Bartender competition in Italy saw Italian bartenders mixing with the Chinese liquor.
3. American millennials seek authentic experiences,
Especially when it comes to spirits. In 2014, 42 percent of the spirits Americans drank was imported, compared with 23 percent for wine and just 13 percent for beer.
4. Old is new again.
With a history dating thousands of years and lots of stories to tell, Baijiu certainly is old. Millennials seek new experiences and brands that tell a story and have a sense of tradition – 66% said a brand's tradition and story influence their purchase. In 2018, the youngest millennials have now all turned 21.
Over 50% talk about it on Facebook, more than a third talk about it on Youtube, Twitter, and Instagram. Not only do they talk, but they also listen too: 54% share or try a brand when it is shared by a social influencer. According to a study by Behind the Bottle, 42% said social media was an ‘influential touch-point to get recommendations’. But they'll only share it if it’s different and noteworthy.
6. Its already established.
If you’re based in China, Baijiu already represents 99% of all alcohol consumed – and it's only just breaking into the cocktail market. Bars have been successfully breaking Baijiu into the cocktail market in Beijing, Shanghai and Hong Kong.
7. The middle class is growing
For those based in China, with a rising middle class that now represent 68% of the population (expected to be more than 75% by 2022), there is a huge amount of middle-class millennials emerging. That’s a lot of disposable income waiting for a new trend.
8. People love a cheap thrill
If you’re not based in China, according to Flavor Company Fona’s 2016 Trend Insight report ‘millennials like alcoholic beverages inspired by travel (real or aspirational) – a way of having a new experience without a big financial commitment’. In fact, they also hold nostalgia for ‘vintage spirits’. Another millennial box ticked for Baijiu.
9. Brand experience
It’s no longer enough just to provide a transactional relationship with consumers. Millennials want to discover liquor brands they can share with their friends. They want experiences, they want something to Instagram, something to Tweet about and something to ‘discover’. Baijiu provides just that: it’s new and old, it’s authentic and it’s definitely an experience.
10. Baijiu is the new gin!
Don’t be the last. Don’t be the bar that starts offering their gin menu at the end of 2018, and don’t be the bar that brings in Baijiu a year after the bar up the road does it. Be the first. Don't be afraid of being the first, be the trendsetter, not the follower!
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