The wine market in China

China's wine market faces a complex situation marked by a significant fall in imports, driven by the clearing of accumulated stock and slower consumption because of the sluggish post-COVID economic recovery. Despite this decline, consumption remains relatively stable, suggesting a market adjustment. Wine culture continues to spread, with more training courses on offer and growing interest in organic and natural wines.

The report highlights several key factors influencing the market, including changes in food and beverage (F&B) distribution, the spread of wine culture to tier-2 cities and a shift in consumer profiles. Smaller cities are seeing rising living standards and greater openness to new product categories such as wine, which is now seen as an option for consumers.

They also preferences are shifting towards less traditional styles such as white and sparkling wine, especially among young consumers with modern lifestyles. Experiences and storytelling are crucial for attracting consumers, who are looking for emotional connections with brands.

Despite the excessive expectations and stock accumulated in the pre-COVID era, the market is expected to grow again if managed properly. The producing country's image is fundamental to positioning wines in China; France and Italy currently dominate the market thanks to marketing efforts and perceived quality. In this context, Catalan wineries have an opportunity to compete by offering strong value-for-money propositions.

The arrival of New World wines, especially from Chile, Argentina and the United States, has transformed China's wine market. These producers have built strong brands and sold large volumes, benefiting from competitive production costs and free trade agreements that ease their entry into the Chinese market. South American wines are positioned as affordable alternatives for consumers less familiar with wine, who are more price-sensitive. Despite growing local production in China, covering both high-end wines and more mainstream options, these do not pose a significant threat to importers.

The return of Australian wine to the Chinese market following the removal of tariffs also marks an important change, although its reintegration will be gradual because of uncertainty about future restrictions. As for Spanish wine, although Spain is recognised in the Chinese collective imagination, its positioning remains vague and less defined than that of other producing countries such as France and Italy.

Catalonia has a unique opportunity to develop storytelling that highlights its rich winemaking tradition and regional diversity. By targeting a young, modern consumer looking for more informal social experiences, Catalonia can position its white wines and cavas, as well as its organic and natural production, as attractive options in this dynamic market. The strategy should focus on building a clear, distinctive image that connects with current Chinese consumer trends.

If you would like to know about other commercial activities PRODECA runs in China, you can write to Rosalba Arrufat at rarrufat@gencat.cat.