Whether at business banquets or family gatherings, baijiu has long held an unshakable place at the table. But this dominance is now under threat. According to the *China Dining Beverage (Non-Alcoholic) Consumption Trends Report 2026*, the non-alcoholic dining beverage market in China reached nearly 400 billion yuan in 2025, signaling a gradual weakening of alcoholic beverages. In dining settings, a transformation is underway—one of replaced functions, diverted scenarios, and reshaped profits.
Functionally, consumer demand is shifting toward healthy, natural, and light options. Non-alcoholic beverages, often marketed as low-sugar, natural, and digestive-friendly, are thriving. Juices and dairy drinks rank high in consumer preference. Meanwhile, baijiu remains tied to tradition and atmosphere, with little emphasis on health or functionality—an approach increasingly out of step with today’s wellness-focused diners.
In terms of dining scenarios, the rise of the “meal + drink” model has turned beverages into a key revenue driver. Restaurants are under pressure, with over 7.7 million outlets nationwide—a 3.8% year-on-year decline. In response, many are leveraging high-margin non-alcoholic drinks. Hotpot chains, for instance, have successfully paired meals with tea-based beverages, creating new profit streams and reducing reliance on baijiu.
Profit structures are also evolving. With high operating costs and limited pricing power, restaurants increasingly rely on beverages to boost margins. In-house drinks can yield gross margins of 60–80%. As non-alcoholic options gain traction—now penetrating over 45% of dining channels—baijiu risks losing significant share of the table.
To stay relevant, baijiu brands must rethink their strategies—embracing functionality, adapting to diverse dining contexts, and shifting from traditional distribution models to collaborative, scenario-based partnerships.

