Popularity of nation's maturing whisky industry uncorked

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By Li Yingxue (China Daily) 10:18, May 07, 2025

Laizhou Distillery (left) in Chengdu, Sichuan province, has emerged as a powerhouse in China's burgeoning whisky industry. Today, it accounts for roughly 80 percent of China's whisky production and oak barrel supply (right). (Photo/China Daily)

In the eastern outskirts of Anshun, Guizhou province, where mist clings to the lush hillsides and the scent of damp earth hangs in the air, a rare microclimate is nurturing China's emerging whisky industry.

Resembling the climate conditions of Scotland's Highlands, the area is home to Panda Brew's whisky distillery, where nearly 2,000 casks of the liquid are laying the groundwork for China's next generation of whisky production.

The whisky, made from imported malted barley and distilled using self-developed equipment, is currently undergoing the maturation process.

Founder Xia Yulin, who has been immersed in the craft brewing industry since 2013, began pivoting toward whisky in 2016. Production at the Anshun distillery officially began in 2022. Whisky production is far more challenging than brewing beer, but the potential market is enormous, Xia said.

The brewer's optimism is well-founded, according to data from the 2023 China Whisky Industry Development Research Report released by the China Alcoholic Drinks Association. Whisky, first introduced to China in the 19th century as an exotic import, has surged in popularity over the past decade.

From 2013 to 2023, China's whisky market grew more than fourfold, reaching around 5.5 billion yuan ($756 million) in 2023 — a 10 percent increase from the previous year. The report predicts this surge will continue, signaling a growing consumer appetite for the spirit.

The report also reveals a key milestone: in 2023, China's whisky production capacity surpassed 50,000 kiloliters, soaring by 127 percent year-on-year, and for the first time, exceeding the nation's whisky imports.

This milestone signals a shift in the market, with domestic whisky gaining ground on international brands as new distilleries rapidly emerge.

Currently, nearly 100 whisky distilleries are operating across Yunnan, Guizhou, Sichuan, Shandong and Zhejiang provinces, and in other regions. Investment has driven both expansion and innovation, enhancing production standards and fostering international partnerships.

With whisky requiring a minimum three-year aging period, many of the distilleries founded in recent years are preparing to release their first major batches, signaling an imminent explosion of homegrown offerings.

While domestic brands still trail global giants in terms of name recognition and inventory maturity, they are sketching out their own bold flavor maps, distinct from imported legends. Leveraging innovative flavor profiles — such as Yunnan coffee bean infusions and notes inspired by China's signature baijiu aroma styles — Chinese whisky is injecting fresh vitality into the market, and is poised to capture the imagination of younger consumers.

Leading distillery

Leading this revolution is Laizhou Distillery, deep in Sichuan's green hills. Owned by Shanghai Bacchus Liquor Co, it has emerged as a powerhouse in China's burgeoning whisky industry. Today, it accounts for roughly 80 percent of China's whisky production and oak barrel supply.

In 2016, Bacchus Liquor, which had long imported spirits for its cocktail business, realized the untapped potential in China's whisky production.

"China is a vast country with all the ingredients and climatic conditions necessary for whisky production," says Shen Anqi, the distillery's vice marketing director. "That realization sparked the idea to craft our own whisky."

Laizhou began operations in 2021, with production ramping up quickly. Located in the "30 degrees north latitude" distillation belt — a region renowned for its favorable brewing conditions — the distillery benefits from a unique combination of factors.

The area's basin climate, marked by warm winters and cool summers, creates ideal conditions for whisky maturation, with some studies showing the process is faster than in Scotland.

The location also has links with China's history of alcohol making. Qionglai, where the distillery is based, is known for its fine liquor. It was a key stop on the ancient Tea Horse Road and boasts over 2,000 years of distilling traditions. The region is also home to one of China's largest baijiu production bases, and many famous baijiu brands trace their roots to the area.

Laizhou Distillery now produces around 30,000 tons of whisky a year — enough to fill more than 40 Olympic-size swimming pools. According to Shen, the distillery houses over 400,000 oak barrels — a rarity in China, and a testament to the scale of its operations.

Laizhou even operates its own cooperage, still crafting barrels by hand, a meticulous process that cannot be fully automated. "Our team handcrafts each barrel, which adds a level of craftsmanship that's increasingly rare in the global whisky industry," Shen says.

A visitor learns about the products of Fujian Daiking Louis Distillery at the China International Alcoholic Drinks Expo in Shanghai on Oct 10. (Photo/China Daily)

Roll out the barrels