Could China Become the World’s Next Major Whisky Producer?

China’s whisky market may have cooled from its pandemic-era frenzy, but production is quietly accelerating. More than 50 domestic whisky distilleries are now operating across the country, according to new data from the China Alcoholic Drinks Association (CADA), underscoring the scale of long-term bets being placed on the category despite a more cautious consumer environment.

On December 8, Dr. Caoimhe Archibald, Northern Ireland’s Minister for the Economy, led a government delegation on a visit to CADA. The two sides held in-depth discussions on the development of alcohol trade, the promotion of distilling culture and history, and potential brand cooperation.

CADA said the meeting focused on expanding bilateral cooperation in the drinks industry, as well as joint efforts to promote the distilling heritage and cultural exchange between the two regions.

During the visit, CADA President Song Shuyu briefed Invest Northern Ireland on the scale of China’s alcohol market. He said China has more than 450 million alcohol consumers, with annual alcohol sales exceeding €200 billion, and is home to more than 10 large drinks companies each generating annual revenues of over €3 billion.

China has more than 450 million alcohol consumers, with annual alcohol sales exceeding €200 billion, and is home to more than 10 large drinks companies each generating annual revenues of over €3 billion.

Song noted that China’s whisky market has grown rapidly in recent years. “More than 50 whisky distilleries have already been established domestically, while international spirits giants Pernod Ricard and Diageo have also built distilleries in China,” he said. “China remains open and inclusive to global alcoholic beverages, and whisky consumption continues to rise, creating favourable conditions for Northern Irish whisky to enter the Chinese market.”

Whisky with an ‘Eastern’ Character

Between 2020 and 2023, China’s whisky market expanded rapidly. Despite the pressure of pandemic-related restrictions, the category continued to grow. Whisky bars proliferated in first- and second-tier cities, Japanese whisky and Scotch single malts surged in popularity, and some high-end bottlings were even traded as financial assets.

Import data supports this trend. From 2020 to 2023, China’s whisky imports grew for four consecutive years, with growth rates of 16.04%, 91.80%, 20.29% and 4.75% respectively.

The boom attracted significant capital investment in domestic production. Diageo’s Yunlu single malt distillery in Eryuan, Yunnan, began production at the end of 2024. Pernod Ricard’s malt whisky distillery, The Chuan, located on Mount Emei in Sichuan, has been operating since November 2021, with products now available on the market. On JD.com’s flagship store, a 500ml bottle is priced at 498 yuan (US$70.7).

Meanwhile, Shanghai Bairun Investment Holding Group — parent company of China’s leading ready-to-drink brand Rio — has invested in what it claims to be China’s largest whisky distillery, Laizhou Distillery, in Qionglai, Sichuan. The distillery also has whiskies on sale.

Both Laizhou and The Chuan have sought to differentiate themselves by emphasising “Eastern character” in their whiskies. Laizhou uses Mongolian oak casks that impart sandalwood notes and also matures whisky in huangjiu (Chinese yellow wine) barrels. The Chuan, by contrast, uses Chinese barley and ages its whisky in Changbai Mountain Single-Ridge® oak, producing aromas described as sandalwood, dried tangerine peel and ebony — spicy notes positioned as distinctly Chinese.

The Chuan has also enhanced its brand value through international awards. Public information shows that its PX sherry-finished single malt won gold at the 2025 International Spirits Challenge (ISC) and silver at the International Wine & Spirit Competition (IWSC), after previously taking double gold at the San Francisco World Spirits Competition (SFWSC).

Domestic Whisky Still Faces Challenges

Despite rapid development, domestically produced whisky in China faces several challenges.

First, whisky production requires long ageing periods and heavy capital investment, often taking more than 10 years to reach maturity. Although some domestic distilleries have already released products, most do not carry age statements — including The Chuan’s whiskies, which sell for 498 yuan a bottle.

Long investment cycles also place pressure on companies. Grace Vineyard, a listed Chinese wine producer that had invested in whisky, privatised its whisky business in late 2024 to avoid burdening its core operations with debt and earnings volatility.

Second, consumer sentiment has become more rational. Against a backdrop of tightening consumption, buyers are increasingly focused on value for money, and speculative trading has declined sharply.

Import data reflects this shift. In 2024, China’s whisky import volume and value fell by 10.50% and 22.79% respectively. From January to October 2025, imports rebounded, with volume up 26.61%, but import value rising by just 0.21%. This divergence suggests that more lower-priced whiskies are entering the Chinese market amid broader consumption pressure.

As an emerging category, domestically produced whisky still faces significant challenges in competing directly with established Scotch and Japanese whiskies.