The Mintel report has found that domestic liquor is considered the most culturally rich category of alcoholic beverages. Consumers with higher incomes generally have a stronger recognition of their cultural heritage.

"Brands should enhance interaction to strengthen the cultural attributes of domestic liquor," according to Mintel.

Meanwhile, international expansion remains a key growth avenue for many liquor brands in China.

Data from the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-products show that China's total alcohol export value reached $1.9 billion in 2024, up 6 percent year-on-year. Total export volume hit 750 million liters, up 5.1 percent year-on-year.

Liquor accounted for 51 percent of total alcohol export value, reaching $970 million — a 20.4 percent increase.

Export volume for liquor rose 6.3 percent to 16.42 million liters, with an average price of $59 per liter, up 13.3 percent.

Analyst Cai Xuefei said that 2024 marked the inaugural year of Chinese liquor's "going global", urging brands to explore international markets for long-term growth.