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Has China's Wine Market Bottomed Out Yet?

Has China's Wine Market Bottomed Out Yet?

Your essential reading on China's wine market

Natalie Wang
January 30, 2024

Hello, this is Natalie from Vino Joy News.

We are nearly in February, which means 43% of people have already given up their New Year resolutions. If you've persevered this far, you're among the successful few. This week, the official data of China’s wine imports in 2023 is out, and it’s one of the most pessimistic and discouraging sets of data we have seen in recent history. If you ever wondered what’s the average spend of Chinese on alcohol, data released by the country’s Bureau of Statistics this month will give you some insights.

Without futher ado, these are the top headlines we have published in the past week.

China’s Drying Wine Imports

The country’s appetite for imported wine has dropped to a new low, as official data has revealed, deepening worries of prolonged cooldown that will extend beyond 2024 as a result of market reshuffle and consumer’s shrinking confidence in economy.

China’s total wine imports in 2023 plummeted to US$1.16 billion, according to the latest data released by the China Association for Imports and Exports of Wine and Spirits (CAWS), worse than the period battered by China’s sweeping austerity and anti-corruption drive, and just about a third of 2018’s total value.

Is the market at its lowest point? What direction will China's import market take in 2024? Read our full report and analysis here.

Here’s How Much Chinese Spent on Food, Alcohol and Tobacco in 2023

With the easing of pandemic-related constraints, Chinese consumers are shifting their spending habits. After three years of conservative spending, there’s a noticeable decrease in expenditure on essentials, with a pivot towards education, culture, and lifestyle-related spending. Last year, Chinese consumers allocated on average 30% of their expenditure to food, alcohol, and tobacco.

But what proportion of this was spent on wine?

67 Pall Mall Launches Virtual Club in Hong Kong

67 Pall Mall, the London-born private Members’ Club for wine lovers, has made its long-waited foray into Asia’s fine wine capital Hong Kong with its ‘En Primeur’ membership that offers exclusive events, tastings and experiences, with full access to 67 Pall Mall’s global portfolio of Clubs.

Bonhams Names New Head for Wine and Spirits Department

Bonhams, the international auction house, has appointed Amayès Aouli as its new Global Head of Wine and Spirits, a position he will assume with immediate effect from his base in France. Aouli’s appointment signals a significant expansion for Bonhams, as he will lead a team of experts across the Americas, Asia, and Europe, coordinating with the company’s extensive network in 22 countries.

South Africa’s DGB Acquires Avontuur

DGB, South Africa’s largest independent wine and spirits producer, has furthered its commitment to the Helderberg wine region in Stellenbosch by acquiring the Avontuur wine brand, cellar, and cellar door, following its acquisition of 136 hectares in the area last October.

In other news, Delicato Family Wines, a leading American wine producer, has revamped its distribution strategy in Hong Kong. Following its acquisition of the renowned Francis Ford Coppola Winery in 2021, Delicato has introduced key ranges from Coppola such as Diamond Collection, Director’s Cut, Eleanor, and Archimedes in Hong Kong, now available through ASC Fine Wines.