There are many small and medium-sized businesses (SMEs) in the Chinese baijiu industry, which contributes significantly to the country’s economy. However, these businesses frequently struggle with low levels of brewing automation, limited technological capacity, and low market competitiveness. This paper thoroughly explores the development status and main obstacles of mechanized brewing technologies and looks at the technical bottlenecks that exist in critical stages such solid-state fermentation, solid-state distillation, and jiuqu manufacturing. It also outlines the more general industrial difficulties that SMEs encounter, such as financial limitations, a lack of qualified brewing experts, and a lack of investment in contemporary machinery. The study defines three research objectives and suggests mechanization solutions that are specific to the requirements and circumstances of SMEs based on these studies. The objective is to assist technological advancement and sustainable development throughout the industry by offering practical references for the mechanized transformation of small and medium-sized baijiu businesses and other brewing industries.