Source | Yunjiu Toutiao Recently, the website of the Customs Tariff Commission of the State Council announced that starting February 2, 2026, a temporary import tariff rate of 5% will be applied to whiskey. In February 2025, China had raised the import tariff on whiskey from 5% to 10%; a year later, the tariff is being adjusted back to 5%. What impact will this adjustment have on the liquor market? Data shows that in 2024, China's total whiskey imports were 29.19 million liters, a year-on-year decrease of 10.5%; the import value was $451 million (approximately RMB 3.281 billion). This 5% tariff reduction will lower costs for some high-end imported brands, benefiting their market expansion. On the other hand, domestic whiskey has become the most prominent liquor category during the industry's adjustment period—Laizhou Whiskey has already launched sales, and multiple baijiu giants such as Yanghe and Langjiu have entered the field. However, due to supply chain constraints, key raw materials still need to be imported, raising the cost of domestic whiskey. After the tariff reduction, will domestic whiskey face greater competitive pressure? With these questions, Yunjiu Toutiao conducted a market survey. Different Feelings for High-End and Low-End Products "After the import tariff on whiskey was reduced, the company immediately held a meeting to assess the situation. Taking a bottle of whiskey with a declared price of RMB 300 as an example, the comprehensive import tax burden decreases by about RMB 21.2, which can be used for market investment and promotions. For merchants like us who focus on high-end liquor, this is indeed a benefit," said a Shenzhen-based imported spirits merchant. Currently, China's high-end whiskey market is mainly dominated by five international companies: Pernod Ricard, Diageo, Suntory, Edrington, and William Grant & Sons. Their brands include Royal Salute, Ballantine's, Singleton, Yamazaki, Hakushu, Hibiki, Macallan, Glenfiddich, and Balvenie, with retail prices ranging from hundreds to tens of thousands of yuan, holding a market share of over 65%. The UK, as the birthplace of whiskey, is one of China's main import sources. According to data from the General Administration of Customs of China, from January to December 2025, despite a year-on-year decline in import value and average price, UK whiskey imports reached 27.68 million liters, a year-on-year increase of 16.31%. In fiscal year 2025, companies such as Diageo, Edrington, and William Grant & Sons faced performance pressure, and this tariff reduction is expected to have a positive impact on their recovery. However, for mid-to-low-end whiskey, the impact of tariff changes is limited. A liquor merchant calculated: taking a 750ml bottle of whiskey with a retail price of RMB 150 as an example, the importer's cost is about RMB 75, and after deducting taxes, the declared price is about RMB 46.4. A 5% tariff reduction only reduces costs by RMB 3.26, which has a negligible actual impact. Thus, the return of the temporary import tariff rate on whiskey to 5% may have a positive effect on some high-end brands, but it will not significantly impact the mid-to-low-end product market. "On the other hand, the import tariff on whiskey was only raised from 5% to 10% a year ago, and many importers still have large inventories. The new rate is only temporary, so importers will not immediately make large purchases due to the rate change," analyzed a liquor merchant. Domestic vs. Imported: Tariff Shakes Up the Whiskey Market Landscape According to the "China Whiskey Industry Development Report" by the China Alcoholic Drinks Association, 26 whiskey distilleries have been put into operation in 12 provinces and municipalities (excluding Taiwan region), with 1 in trial operation, 8 to be built, and 10 under construction. The total distillation capacity is 80,000 kiloliters, with an actual distillation capacity of 45,000 kiloliters and a total planned capacity of 250,000 kiloliters. Data comparison shows that in 2023, China's whiskey production increased by 127% year-on-year, while imported whiskey decreased by 0.57% year-on-year. The former, with a total production of 50,000 kiloliters, surpassed the latter's import volume of 32,600 kiloliters for the first time. Despite domestic whiskey surpassing imports in production, imported whiskey still holds advantages in the supply chain and brand. The main raw material for whiskey is barley or malt, and most domestic distilleries rely on imports—because barley is not a staple grain in China, they have long depended on supplies from the UK, France, Argentina, and other countries. In addition, oak barrel aging is a key step in whiskey production, contributing about 70% to the flavor profile. However, the high dependence on imported oak barrels has become a major bottleneck for the industry. It is reported that domestic whiskey uses mostly American and European oak barrels, of which used second-hand barrels, with a mellow flavor and a unit price of only RMB 2,000-3,000, account for over 80% of industry usage; new barrels cost RMB 4,000-5,000 each and are used less frequently. As overseas exporting countries strengthen wood protection, second-hand barrels may face supply shortages in the future. Industry insiders point out that the annual production capacity of domestic whiskey base liquor is about 100,000 tons. According to industry standards, each 10,000 tons of base liquor requires 50,000 standard oak barrels, resulting in an annual demand of 500,000 to 1 million barrels. As of 2024, the total stock of oak barrels in China's domestic whiskey industry is only about 450,000, which is severely insufficient, creating a significant supply-demand gap. Furthermore, multinational spirits groups represented by Diageo and Pernod Ricard have scale advantages in global procurement, production blending, and distribution, giving them more initiative in cost control and market penetration. At the same time, imported brands have established strong recognition among channels and consumers through long-term operations, and their origin culture, traditional stories, and brand history constitute high premium capabilities and user loyalty. Thus, domestic and imported whiskey each have their strengths: the former excels in production and localization, while the latter is stronger in supply chain and brand culture. Tariff Impact on Costs Limited; Domestic Whiskey Has a Promising Future What is the feedback from channels and liquor merchants regarding this import tariff reduction? Will it impact domestic whiskey? Several industry insiders shared their views. Ma Yue, general manager of Yunnan Dayang Tangjiu, which represents several well-known whiskey brands, said: "The import tariff on whiskey has just been reduced, and our inventory is not large, so we don't feel it for now. But in 2025, some products like Macallan 12 Year Double Cask were in short supply nationwide, with tight inventory. The impact of the tariff reduction will take some time to show." Gu Lei, founder of VETO Whiskey, analyzed: "Among the three major taxes on whiskey imports, consumption tax (20% ad valorem) and value-added tax (13%) are the main components of the comprehensive tax burden. A 5 percentage point reduction in tariff has limited impact on costs, especially for mid-to-low-end products. Most circulating brands already have low profit margins, and with inventory pressure, it is unlikely that channels will collectively lower prices." Thus, the reduction in import tariffs on whiskey will not cause significant impact on domestic whiskey. In recent years, domestic whiskey has made substantial progress in supply chain development, standard setting, and quality improvement, in addition to surpassing imports in production. In terms of supply chain, companies such as Laizhou and Gispore are actively exploring the use of alternative materials like domestic Mongolian oak and yellow wine barrels to address the oak barrel shortage. In 2025, the State Administration for Market Regulation officially released "Quality Requirements for Spirits - Part 1: Whiskey" (GB/T 11856.1-2025), which will be implemented from February 1, 2026. This is the third major revision of China's whiskey standard since its first release in 1989, and the most systematic and comprehensive upgrade. In addition, the Whiskey Professional Committee of the China Alcoholic Drinks Association released group standards such as "China Whiskey Product Certification Rules" and launched the "China Whiskey Plan" research project, covering 8 topics including regional terroir, microbial databases, and distiller design, to consolidate the technical foundation; launched the "CWSA Whiskey Guide: China Whiskey Star Yearbook" to establish a credible evaluation system for consumers; and Guizhou Renhuai Jiangxiang Liquor Group led the formulation of the "Jiangxiang Whiskey Group Standard," further enriching the domestic whiskey category map. In terms of quality improvement, the new national standard clarifies that all whiskey base spirits must be aged in barrels for no less than 2 years, and single malt whiskey must be aged for at least 3 years; prohibits the use of edible alcohol; prohibits the addition of coloring substances other than caramel color; prohibits the use of artificial flavors and fragrances except for flavored whiskey; and requires single malt whiskey to be distilled 2-3 times in copper pot stills, without adding exogenous enzymes or oak chips. These regulations align with international mainstream standards and provide support for establishing credible quality endorsement for domestic whiskey. In 2024, whiskey continued to maintain its position as the world's top spirit, with a market size of $89.2 billion. However, in China, whiskey accounts for only about 1% of total spirits sales. With Generation Z gradually becoming the main force in beverage consumption, the trend of internationalization and youth orientation in alcoholic beverages is accelerating. Survey data shows that from 2024 to 2030, China's whiskey market is expected to continue expanding at a compound annual growth rate of 8.85%, with the market size expected to reach RMB 9.79 billion by 2030, making it the fastest-growing track in the liquor industry. From this perspective, the reduction in import tariffs on whiskey may stimulate consumption of some high-end products, but the overall market impact is limited. On the other hand, domestic whiskey is undergoing comprehensive upgrades in supply chain, standards, and quality. In the future, domestic and imported whiskey will learn from each other in competition, jointly expanding the market cake, and China's whiskey industry will usher in a new stage of rapid development. 【Moving Toward the C-End】The 11th China FMCG Conference Time: March 16-18, 2026 Location: Chengdu, China