According to a report by the Hong Kong English media The South China Morning Post on August 23, the Chinese market, once regarded as the 'next growth engine' of the European wine industry, is experiencing a continuous and profound decline in demand.
Latest trade data shows that China’s imports of bottled wines from the EU decreased by 16.6% in the first half of 2026, with import values dropping by 7.9% to $251 million. This figure not only continues the downward trend that has been present for several years, but it also signifies the complete disappearance of the brief rebound after the pandemic. The “Chinese Dream” of European wine producers is being realigned by reality.
Arsen Zhao, who operates a Sino-French wine trade in Paris, said that his French business remains stable, but orders from Asian buyers—especially Chinese buyers—have seen a "drastic decrease." "The decline is most evident among Chinese customers, and a general trend of reduced consumption has become common. The large quantities of high-end European wines that have been stocked over the past few years are still available for sale in channels, and high inventory levels directly suppress new purchasing demands."
He further pointed out that the imbalance between supply and demand has begun to distort the price system. "The final selling prices of some top French brands of wine in China are even lower than their retail prices in France, which was almost unimaginable in the past."
The decline in demand is due to a combination of multiple structural factors. On the one hand, the drinking preferences of China’s young consumer group are shifting from “show-off consumption” to “self-care-oriented, scenario-based” consumption patterns, resulting in a decrease in enthusiasm for high-priced imported wines. On the other hand, the slowdown of the economy and the fading of the real estate wealth effect have further reduced the budget for wine purchases in business banquets and gift markets.
Meanwhile, the rise of domestic wines is quietly changing the competitive landscape. Wineries in regions such as Shangri-La in Yunnan, the eastern foothills of Helan Mountain in Ningxia, and Penglai in Shandong have successfully attracted a group of consumers who previously favored the "Old World" label to turn to local premium wines, thanks to their continuously improving brewing techniques and international award endorsements.
A senior wine exporter in Madrid revealed that although the Chinese market is not its largest segment, shipments have remained stable over the years. In peak years, exports to China amounted to more than 3,000 bottles, mainly supplied to Western-style restaurants in major cities such as Shanghai and Shenzhen. However, this year, he expects sales to drop sharply to less than 900 bottles.
Faced with this change, more and more European producers are adjusting their strategic focus, reducing their shipments to China, and turning their attention to emerging markets such as Canada, India, Southeast Asia, and South America. Although the premium capabilities per bottle and the total volume in these markets cannot compare with China during its peak period, diversification has become an inevitable choice in order to withstand risks.
Industry analysts point out that the peak of Chinese wine imports already reached its limit around the time of the pandemic, and the market is currently undergoing a long-term transformation from "increased volume and rising prices" to "reduced volume and stable prices". If imported wines are to regain growth, they must shift from the narrative of "high-end scarcity" to a new logic of "cultural integration and everyday consumption". For European wine merchants, giving up illusions and embracing a decentralized strategy may be the most practical way to survive in the post-"China Dream" era.
