The director-general of one of China’s largest wine importers has described a profound transformation of the sector to Lusa, marked by a 50% plunge in imports compared to 2018 and an increasingly sophisticated consumer base.
“The market that existed in 2018 is, today, less than half its size,” stated Francisco Henriques, the Portuguese director-general of Shanghai-based China Wines & Spirits, which celebrated its 20th anniversary this week.
Henriques, who has lived in China for nearly two decades, attributed this “brutal” decline in consumption to a combination of factors. These range from Beijing’s ongoing anti-corruption and austerity campaigns—which include restrictions on alcohol at official events—to the crisis in the real estate sector, which has dampened the appetite for luxury goods.
Recent data shows that Chinese wine imports fell by 11% in the last year alone. They currently stand at roughly half the levels recorded in 2018, a year when the country purchased nearly $3 billion (€2.5 billion) in foreign wine. For years, China was a primary engine for the global wine industry, with regions like Bordeaux and Australia relying heavily on Chinese demand. In 2019, approximately one-quarter of Bordeaux’s exports were destined for the Asian giant.
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The recent slump is now having a global impact, leaving many producers facing oversupply, falling prices, and, in some cases, the necessity of uprooting vineyards or leaving grapes unharvested.
Beyond the economic and political climate, Henriques highlighted a cultural shift, particularly among younger generations who “drink less and drink differently.” Two decades ago, wine was primarily consumed by an elite class, dominated almost exclusively by French labels, and often associated with gifting and official banquets. Today, he argues the market is “maturing,” showing a greater diversity of origins and more individualized consumption habits.
“Twenty years ago, people drank a bottle per person; today, people prefer to drink one glass, but of better quality,” he explained. Consumption has also shifted toward home delivery and mobile app purchases, requiring the industry to adapt to a reality where a bottle can be ordered and delivered within thirty minutes.
Despite the market contraction, Henriques believes China remains a strategic bet for countries like Portugal, though it requires long-term dedication. He noted that while Portuguese grape varieties are well-received for their uniqueness, the main challenge is maintaining a consistent presence in hotels, restaurants, and distribution channels.
He warned that many producers fail by viewing China as a quick-opportunity market without continuous investment. “The producer who comes to China, exports one container, and then just waits… it doesn’t work,” he said, emphasizing the need for stable partnerships with local importers in a dynamic market where finding the right partner can be like “finding a needle in a haystack.”
