MOUTAI | The world's most valuable spirit brand. A 2024 Analysis.

Anyone who’s lived in or visited China, especially those familiar with business culture, certainly knows the iconic Moutai brand.

But outside that circle, it’s largely unknown.

Still, by early 2023, Moutai had become the 25th most valuable company worldwide by market cap. And in 2024, it holds its title as the top spirit brand globally, leading for nine consecutive years.

Let's look at some of the stats closer:

• Chinese Spirits Market Dominance | Among the global Top 50 spirits brands, Chinese brands contribute 68.4% of total brand value ($97.6B of the $142.6B industry value), with Moutai at the forefront. This dominance highlights China’s influence in the luxury spirits market, powered by Moutai’s reputation as a cultural and premium symbol.
• Global Recognition and Domestic Prestige | In 2022, Moutai ranked 32nd in Brand Finance’s Global Top 500 Brands with an AAA rating and currently holds the highest spirits ranking globally. Within China, Moutai remains a powerhouse, ranking 15th in China’s 500 Most Valuable Brands.
• Dominant Global Brand Value | As of 2024, Moutai’s brand value has risen to $50.1B, making it the world’s most valuable spirits brand for the 9th consecutive year, according to Brand Finance. This value reflects its enduring prestige and successful market expansion strategies.
• Top Ranking and Sector Leadership | Moutai and Wuliangye remain the two most valuable spirits brands globally, with Wuliangye’s brand value at $25.9B and Luzhou Laojiao at $8.2B.

How did Moutai achieve such remarkable success and become a cultural symbol? Here’s a quick history:

1. China’s “National Liquor” | Moutai, a potent 53% alcohol baijiu, is China’s prestigious national spirit, deeply embedded in its history and culture. Symbolic of many diplomatic ties, it iconically toasted US-China relations back in 1972. With prices ranging from $350 to over $1M, Moutai remains the status drink at political and social gatherings.

2. Limited Production, Premium Prices | Produced only in Guizhou, Moutai’s five-year fermentation and scarcity of key ingredients create limited supply and high prices. With a unique production process and strict regional origins akin to Champagne or Bourbon, Moutai’s exclusivity keeps demand and prices consistently high.

3. Market Titan with Historic Valuation | By 2021, Moutai’s valuation hit over $500B, surpassing major global players like Budweiser’s parent company (AB InBev). Although now closer to the $300B-mark, it continues to anchor China’s stock market as a “bellwether” stock, with investor interest intertwined with China’s economic outlook.

4. Adapting for Younger Generations | Moutai’s recent collaborations, like Moutai-infused ice creams, lattes, and Dove chocolates, aim to capture younger audiences. While these initiatives went viral, they contribute minimally to revenue, highlighting Moutai’s challenge of engaging younger consumers who may prefer more affordable or accessible brands.

5. International Recognition Lagging | Despite its elite standing in China, Moutai’s international recognition is limited. With availability now in over 70 countries, global audiences remain unfamiliar with its unique taste, which many describe as an “acquired” one, reflecting a need to bridge cultural and taste perceptions.

6. Resilience Amid Economic Fluctuations | Moutai’s brand strength has helped it withstand economic downturns and restrictions under China’s anti-corruption drive. Achieving $10.3B in profit in 2023, Moutai is proof of an iconic brand that endures as both a cultural staple and luxury product, yet faces an urgent need to broaden appeal.

As Moutai works to broaden its appeal among younger consumers—collaborating with concept bars like Healer in Shanghai and exploring the cocktail world—and seeks to expand internationally, what does the future hold for this iconic brand among both Chinese and global audiences?