China’s bar and pub sector is experiencing steady growth despite a broader economic slowdown and declining corporate entertainment spending, driven by rising demand from young consumers and a shift in nightlife preferences.
According to the 2025 China Bar Industry Development Report released by food and beverage research firm Hong Can Wang, the industry reached a market size of RMB 112 billion (US$15.6 billion) in 2024. That figure is projected to rise to RMB 117.5 billion (US$16.34 billion) by the end of 2025. As of March 2025, the number of bar venues in China has surpassed 60,000.
The country’s night-time economy, which began to flourish in the late 1980s through high-end nightclubs catering to business elites, is undergoing a generational transformation. With a cooling economy and diminished business-related spending, young consumers — particularly those born after 1995 — are becoming the primary force behind after-hours consumption.
Data from the Ministry of Commerce confirms this demographic shift. A recent consumer behavior study revealed that 60% of urban consumption now occurs at night, predominantly driven by Gen Z and millennial consumers. Platforms such as Meituan report that bar-related transactions in 2025 increased by 49% year-on-year — significantly outpacing the broader industry average. High-growth categories include craft beer bars, cocktail lounges, social pubs, and hybrid venues, each seeing annual expansion rates above 30%.
Downsized, Digitized, and Diversified
Despite strong demand, younger patrons tend to spend less per visit. The report notes that 35% of bar-goers typically spend between RMB 60 and RMB 100 (US$8.34–13.91), while only 13.5% exceed RMB 150 (US$20.86) per outing. For an industry already challenged by low table turnover, maintaining profitability remains a pressing concern.
To adapt, bar operators are pivoting toward smaller, more agile formats. Hong Can Wang observed a trend toward compact spaces — typically between 20 to 40 square metres — that offer curated experiences with lower startup and operating costs. One example is Helen’s, China’s first publicly listed bar chain, which rolled out a “community space” model in 2024. These 40–80 square metre outlets operate with minimal staffing and diverge from the company’s earlier large-scale bar formats.
Digital engagement has also become a core strategy. Many venues are leveraging social media and on-demand retail platforms to attract younger audiences. According to Meituan, over 70% of bars that experienced notable online growth in 2025 maintained an active digital presence through consistent content marketing.
In addition, hybrid business models are gaining ground. Increasing numbers of bars now offer food services, live performances, retail components, or even in-store bookstores, transforming their spaces into multifunctional destinations designed to maximize engagement and boost revenue per square metre.
Wine Bars Adapt to a More Price-Conscious Market
Wine bars — once symbolic of exclusivity and cosmopolitan lifestyles — are also realigning their strategies to appeal to younger, cost-conscious drinkers. Following the pandemic, many have adopted more affordable and accessible formats, such as RMB 99 (US$13.78) all-you-can-drink packages.
New entrants in cities like Shanghai are focusing on compact, low-markup venues that double as dining spaces and retail shops. According to Gu Yuping, brand ambassador at Henkell Freixenet China, many wine bars are incorporating warehousing functions, essentially becoming mini wine shops to remain viable in a competitive environment.
“Young consumers are a vast demographic,” said Gu. “While their individual spending is modest, their collective potential is enormous. But competition is intense — beer, cocktails, and spirits are all contenders. Wine has a place, but for now, it’s more of an aspiration than a widespread trend.”
As China’s bar industry evolves alongside changing consumption patterns, operators face the dual challenge of appealing to a younger generation while maintaining financial sustainability — a balancing act that continues to redefine the country’s modern nightlife economy.
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