The data indicates that alcohol prices in December were 2.1% lower year-on-year and 0.5% lower than in the previous month. While the national consumer price index (CPI) rose by 0.2% for the full year 2025, prices in the "food, tobacco, and alcohol" category fell by 0.7%. Within this group, the decline in alcohol prices was disproportionately steep at –1.9%.
By comparison, the price decline for food, tobacco, and alcohol in 2024 was just 0.1%, with alcoholic beverages recording a 0.5% drop.
In a commentary, Hong Kong-based industry portal VinoJoy described the accelerating momentum of this deflation as "not a short-lived fluctuation but a year-long, structural trend across the sector."
Deflating the market
In addition to the global phenomenon of declining overall demand for alcoholic beverages, the China Alcoholic Beverages Journal attributes the situation to an ongoing process of "deflating the market." This follows the long-term formation of a "certain premiumization bubble," during which specific brands demanded excessive price premiums. Oversized inventories and the shrinking purchasing power of Chinese consumers are also cited as causes for the price drop.
How the world of wine is set to change in 2026
According to VinoJoy, this trend affects not only spirits like Baijiu but also high-priced red wines, such as Bordeaux Crus, some of which are now trading below En Primeur prices.
The growing importance of online retail and parallel imports, combined with a sharp increase in aggressive discount and coupon campaigns, are reportedly driving China’s alcohol market into a "deflationary spiral."
The portal quotes Chen Ruidong, President of the Chengdu Wine & Spirit Association, who predicts that conditions for the Chinese wine trade will remain difficult for the next three to five years, as consumers have now become accustomed to cheap wine.
