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Over 800 Wine Companies Deregistered in 2024

Over 800 Wine Companies Deregistered in 2024

Penfolds' Price War in China/ Gen-Z's Revolt Against Drinking Culture/ Interview With ProWein Global Director

Natalie Wang
December 18, 2024

One of the biggest frustrations we hear about the China wine market is its lack of transparency. This week, we bring some clarity to the conversation by putting the changing market landscape into perspective. Through our research, we have found that over 800 wine companies deregistered in 2024. Is this indicative of a downsizing market or a long overdue cleansing of opportunist players?

Amazingly, out of close to 10,000 wine related businesses operating today, the majority of the market is dominated by small players, to the extent they comprise about 85% of the market, making less than RMB 5 million a year. As the market gets more fragmented, what does this mean for the future of China’s wine market?

In a more sobering news story, Peng Yong, who founded and managed the popular budget-friendly wine bar iBarrel, has passed away. This came at a time when the company is facing legal disputes and delays in payments.

Meanwhile, Penfolds, the iconic Australian wine brand, is having a price war in China. In the past the choice was between genuine and counterfeit Penfolds, increasingly there’s a third option - parallel imports. The result? Confused consumers, frustrated distributors and a price war that’s spiralling out of control. What does it mean for Penfolds and its profitable Chinese market? Read our full report here.

Shifting our focus to the youth, China’s Gen Z, unlike their European peers who view wine as old-fashioned, is embracing traditional mulled wine as a new trend, adding warmth to this winter. At the same time, they are rejecting China’s deep-rooted business drinking culture. The practice of downing glasses of baijiu to express respect and ambition is no longer recognized by the younger generation. We spoke to Gen-Z voices who are reshaping the narrative—one drink (or skipped toast) at a time.

Despite China’s economic headwinds, Peter Schmitz, the Global Director of ProWien, remains optimistic about China’s wine market, noting that “China’s opportunities remain clear.” Read his exclusive inisights on what lies ahead his plans for 2025 Prowein Dusseldorf.

After the heartbreaking loss of Robert Mondavi Winery, how did Robert Mondavi and his family restart their journey and continue the Mondavi legacy in Napa Valley? In our conversation with Tim Mondavi, Robert Mondavi’s son, he took us on a journey to Continuum Estate, where the family’s second chapter began and elevated the Mondavi dreams to new heights.

Stay on top of Asia’s fast-moving wine industry with our exclusive stories, and don’t forget to subscribe for premium insights and content.

Penfolds Faces Price War in China as Parallel Imports Undercut Official Sales

Australian wine giant Penfolds is facing a pricing crisis in China, with its wines appearing at drastically different price points following the lifting of tariffs on Australian wine.

The Second Act of Mondavi

Twenty years later when we met with Tim far across the Pacific in Hong Kong, the feeling of loss still tugs. Now fully silver-haired, he described the transaction as “heartbreaking,” attributing the failure to the family’s loss of control over the financial situation.

ProWein Global Director: “China’s Opportunities Remain Clear”

ProWine’s commitment to China’s wine industry is unmistakable. Of its six global satellite fairs, five are in Asia, including flagship events in Shanghai and Hong Kong, alongside shows in Singapore, Mumbai, and Tokyo. ProWine Shanghai, the first international wine fair launched in China more than 10 years ago, has played a pivotal role in shaping the Chinese wine market.

To Toast or Not to Toast, How Gen Z Views Drinking Culture in China?

Can Gen Z break free from China’s deeply rooted drinking culture, where toasting is a test of respect and ambition? With clever strategies and bold defiance, they’re challenging traditions that many find outdated and oppressive.

China’s Gen Z Finds a New Winter Fling: Mulled Wine

As the chill sets in across China, mulled wine is warming up hearts—and cups—nationwide. Once a staple of German winter markets, this centuries-old beverage has found a surprising and passionate audience among China’s Gen Z.

Close To 800 Wine Companies Deregistered in China in 2024

With the Chinese wine market’s persistent downturn, the wine trade is grappling with one of the most challenging years in recent memory. Based on the company data we have compiled and analysed, the year 2024 has seen hundreds of wine companies folding their business, highlighting the extent of market slowdown.

Small Businesses Make Up 84.64% of China’s Wine Industry

Out of close to 10,000 wine related businesses still operating in mainland China today, close to 85% are operating on annual revenues less than RMB 5 million (US$0.69 million), highlighting the highly fragmented nature of the market.

The Founder of iBarrel, China’s Popular Wine Bar, Passed Away

Peng Yong, the founder and legal representative of iBarrel, a well-known wine bar in China credited for popularizing affordable wines to young generations, has passed away early last month.