Wine in China: where do we stand?

China is one of the largest export markets for French wines. France has been the leading country for imports into the Chinese market for more than 10 years. But today, the Chinese market is changing and the prospects for French producers are no longer the same. Where do we stand? What are the prospects for selling wine in China?

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French wine consumption in China

China is initially a grain alcohol consuming country. The most popular and most consumed drink in the country is baiju, a fermented rice alcohol. However, since the 1980s, a new trend has emerged: the consumption of wine. And this trend has quickly become ubiquitous in the Chinese market.

Since 2010, France is the country that exports the most wine to China. Fond of this low-alcohol beverage and bearer of a refined and luxurious image, the Chinese have a strong preference for Bordeaux wines. After having shown a strong interest for the Grands Crus, the Chinese seem today to be open to medium priced bottles, especially thanks to a middle class that is becoming more and more westernized and interested in wine.

Bordeaux wines, big winners in China

In 2021, nearly one in five bottles of Bordeaux wine was sold to China. And this despite major changes in the global market: the Covid pandemic, international conflicts or elections in countries with major issues. After two years of decline, shipments to China (including Macao and Hong Kong) were again on the rise.

Today, the report is positive: 2021 has been the scene of a strong recovery in exports for Bordeaux wines. A jump of 30% in value and 9% in volume, that is to say 616 million euros and 54 million bottles sold on Chinese territory.

A product perceived as luxurious and a marker of social status, great French wines continue to be popular in China. But the Chinese are increasingly attentive to the production process and the origin of the wines they consume, which leaves a new place for mid-range red wines.

These export figures are a welcome relief from the realities of the domestic market. In 2021, sales of Bordeaux wines in France declined by 3%. Bottles at low prices, less than 8 €, seem to be the most affected. Faced with this lack of interest in Bordeaux wines, the Bordeaux interprofessional organization, the CIVB, is taking the issue head on and is doing everything it can to try to boost consumption.

China and its wine production

China, a large wine importing country, is also a large wine producing country. In 2016, China had the second largest vineyard in the world, just behind Spain and ahead of... France (which has since regained the 2nd place).

China is the leading producer of table grapes, but its local wine production has been decreasing for almost 10 years. In 2021, the OIV estimated that the level of production in China would fall by 10% compared to 2020. A consequence, among other factors, of the reduction in demand in China as well as problems of climatic conditions, technological constraints and low overall productivity of the sector.

A finding confirmed recently, with figures down significantly by the end of 2022: 600 million liters of wine produced against 1.1 billion in 2017.

What are the prospects for French wine in China?

So what can we expect from the Chinese market for French wines? With a steady decline in Chinese consumption, export opportunities are a concern. The initial enthusiasm for fine wines is waning, and neo-consumers seem to be increasingly interested in products such as beer or whisky.

However, the abandonment of the zero-covid policy in China suggests a gradual recovery of business in the hotel and restaurant sector, an essential pillar for the distribution of French wines.

After a more than difficult year in 2022 for most of the French wine actors in China, 2023 seems to be a hopeful year.

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Chloé Desaigues for Les Grappes