(Yicai) Aug. 27 -- Leading distillers of China’s traditional baijiu tipple, including Wuliangye Group and Yanghe Brewery, are coming out with a slew of lower-alcohol versions of the fiery spirit to win over the country’s young consumers.

Wuliangye launched a baijiu with only 29 percent alcohol by volume yesterday, and tapped G.E.M., a singer popular with a younger crowd, as global spokesperson. Yanghe released several new baijiu products with 33.8 percent ABV in spring, while four other rivals have rolled out low-alcohol versions over the past month, with Gujinggong Liquor debuting a 26 percent ABV spirit earlier this month.

The proliferation of less-fiery baijiu reflects anxiety among distillers about the industry’s prospects amid a generational shift and the corresponding business changes they must make, industry insiders told Yicai.

Baijiu is most often consumed at social gatherings, banquets, and celebrations in China, but demand has been softening. Younger drinkers are shifting away from strong spirits, with Gen-Z favoring health-conscious, low-ABV drinks, mocktails, and flavored beverages over heavy spirits such as baijiu, according to reports.

Baijiu is made from sorghum and grains such as wheat, barley, or rice and has an alcohol content that can range from 40 percent to 65 percent ABV or even higher.

Beyond lower alcohol content, the new baijiu products coming to market have also ditched their producers’ traditional packaging in favor of more trendy designs. Their manufacturers have also begun using online platforms as their main sales channels and have started to seek celebrity endorsements of the new products to help win favor with young consumers.

The new market offensive seems to be bearing fruit, with Wuliangye receiving over 1,000 pre-orders for its new 29 percent ABV baijiu across multiple e-commerce platforms on launch day.

As lower-alcohol products align with the tastes of young consumers, they will likely become growth drivers for baijiu makers, with the Chinese market for such drinks expected to top CNY74 billion (USD10.3 billion) this year, said Cai Xuefei, general manager of Zhiqu Consulting.

However, whether simply lowering alcohol content can win the hearts of younger drinkers still needs further verification, according to Cai. Baijiu makers need to better understand the true needs and consumption habits of young buyers, he added.

Editors: Tang Shihua, Martin Kadiev