【By Observer News, Qi Qian】

"European wine is being left on the shelves and no longer favored by Chinese consumers," said the Hong Kong English media South China Morning Post on November 26. It reported that European producers have recently realized that European wine, which has long dominated the Chinese market, is facing problems - data shows that demand for alcoholic beverages in China has decreased, and European brands have been particularly severely affected.

Industry analysts believe that after the pandemic, the Chinese alcohol market is undergoing a major transformation. Chinese consumers are no longer blindly pursuing so-called European "premium brands", but instead focus more on taste and value for money. At the same time, wines from Xinjiang and Ningxia are rapidly rising, squeezing the foreign brand market.

For this, a French winery's export regional manager frankly admitted that Chinese people are not uninterested in drinking, but they have "become more knowledgeable about wine".

Marshall Su, a 30-year-old headhunter living in Shanghai, has always been a wine lover. Now, he prefers to open a bottle of wine at home rather than order wine in high-end Western restaurants. He said, "It's cheaper than going out to drink."

The report stated that this is not an isolated case. Currently, Chinese consumers are reducing their alcohol consumption, or turning to more affordable brands, and seeking discounted wines on online shopping platforms. This trend is causing trouble for global wine producers, especially European producers who have long dominated the Chinese market. Just a few years ago, the Chinese wine market was booming, and exporters felt that "any product, any price" could be sold in the country.

According to a report released by the International Organisation of Vine and Wine in April, global wine consumption has declined significantly since the pandemic, with an estimated 21.4 billion liters in 2024, the lowest total since 1961.

Among these, the transformation of the Chinese market is noteworthy. According to China Customs data, the import volume of wine in China reached a peak of about 552 million liters in 2017, then entered a long-term decline. Last year, the import volume was slightly over 165 million liters, less than 30% of the total seven years ago. The data also shows that in the first three quarters of 2025, both the import volume and value of wine in China showed a downward trend compared to the same period last year, indicating that demand seems to continue to decline.

The impact on the demand for European wine is particularly severe. According to China Customs data, the value of wine imports from France, Italy and Spain to China fell by 19.7%, 12.8% and 26.9% respectively in the first three quarters of 2025, while the overall import fell by 3.4%.

South China Morning Post illustration

In early November, at the International Wine and Spirits Exhibition held in Hong Kong, China's reduced demand for wine became a hot topic. European and Australian wine producers said they had to rethink pricing, quality, and distribution strategies to retain customers.

Pasquale Valentino, CEO of the Italian food and wine brand Madeit Group, said that sales have now declined, and Chinese consumers are becoming younger and more frugal, often looking for discounts on social media. He revealed that the company is trying to adapt to the market by shifting to online advertising and offering significant discounts.

Analysts and suppliers attending the exhibition said that the Chinese wine market is undergoing a major transformation. Now, young drinkers are increasingly interested in wine, but they prefer more affordable, sweeter options. They are also more willing to compare prices to find deals.

The report said that even experienced drinkers have become more discerning. Wang Tailin, a partner at a venture capital company in Shanghai, almost drinks wine every night at home. But he focuses on cost-effectiveness, and looks for the best offers on professional websites.

French winery Maison Le Star is also facing difficulties. Its export regional manager Mathias Saint-Marc said that people have reduced their interest in drinking out, making it harder for the company to sell at high profits. He said, "Before the pandemic, you could sell anything to China at any price. Perhaps because of the pandemic, people have time to explore wine at home... they may have become more knowledgeable about wine."

For Daniel Castano, the export director of the Spanish family-run Castano vineyard, this situation may bring opportunities, as Spanish wine is known for its high value for money, usually priced lower than similar products from France or Italy.

Ningxia Wine Exhibiting at the Hong Kong Exhibition, South China Morning Post

The South China Morning Post mentioned that overseas wine producers also face increasing competition from Chinese brands in the market.

At the exhibition, the Hong Kong local trading company Dragonfly International Group brought over a dozen wine and beverage brands from Xinjiang, receiving orders from buyers from South Korea, Malaysia and Singapore. The company's representative said, "Xinjiang has excellent conditions for growing wine grapes - plenty of sunlight, suitable climate, and very high-quality fruits."

"The feedback from overseas buyers has been very positive, and they praised the high quality of Xinjiang wine," the representative, who witnessed the rise of China's domestic smartphone industry, said, "I believe the Chinese wine industry can replicate the same success story."

More worrying for foreign brands is that Chinese wine producers are no longer satisfied with the domestic market, and are now setting their sights on overseas markets. This could dilute the profits of European and Australian wine producers abroad.

China Customs data shows that the export volume of wine from mainland China in the first nine months of 2025 surged to 2.52 million liters, up 118% year-on-year. About 62.9% of the exports went to Hong Kong, with France, South Korea, Australia, Singapore, and Kazakhstan also being major destinations.

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