Australian winemakers toast loyal Chinese consumers

Evolving tastes

Pia Piggott, an Australian viticulture analyst at agribusiness banking cooperative Rabobank, said that "the comeback from China has been very positive, it's been a lot higher, at least from a value perspective, than expected".

Regaining Chinese market share "in such a short space of time is really positive for local growers", she told China Daily.

"There're still a lot of challenges in the industry. Vineyards are long-term investments and any changes in markets come with a lot of lag, so the oversupply situation has been drawn out quite far because of the structure of the market itself," Piggott said. "As we're going through these next few years, we'll start to see the oversupply reduced …there's a lot being done, but it will take time," she said.

Many Australian winemakers are catering to evolving Chinese consumption choices in order to boost sales.

Red wine has traditionally been Australian winemakers' largest export, representing more than 90 percent of the volume shipped to the Chinese mainland.

" (But) we are seeing increased interest in lighter styles including whites, rose and sparkling, as wine drinkers in China become more open to exploring other wine styles", the Wine Australia spokesperson said.

"Trends including convenience, lighter and refreshing wine styles, and emerging varieties are driving new opportunities for the wine sector. Products that align with these trends will likely have appeal in China, particularly with the younger consumers (25 to 39 years) who are interested in discovering new and different wines, including premium imported wine," the spokesperson said.

"Across the globe there is growing interest in 'no' and 'low' alcohol wines aligned with the health and wellness and moderation trends, and this is also evident in China. This trend is especially prevalent among older consumers in China who are drinking less alcohol in general."

Tina Tian, founder of Beijing Mellow Rouge Trading, said Australian wines have gained significantly in popularity among Chinese consumers due to their unique flavors and high cost-performance ratio.

Tian's company has been in the sector for 15 years and specializes in importing original wines from major wine-producing regions around the world.

She said that Australian wines have a solid foundation in the Chinese market. A wine such as shiraz, known for its rich fruit aromas and full-bodied taste, is particularly suitable for first-time wine drinkers and pairs well with Chinese cuisine, Tian added.

Many Australian wines are sold in mid-range Chinese supermarkets, with moderate prices that align with Chinese consumers' shopping habits, Tian said.

She believes that as New World wines, Australian products can fully compete with traditional wine-producing countries such as France and Italy in the Chinese market. "There was a time when Australian wines accounted for more than half of my sales," she said.

In recent years, with Chinese consumers becoming more knowledgeable about wine, the market has gradually matured.

"Some of my clients started exploring wines over a decade ago," Tian said. "They have transitioned from young professionals to middle management, with their purchasing power continuously increasing. Now, these clients make up a significant portion of my customer base."

Wine is no longer just a staple at business banquets — it also represents a new "cultural lifestyle". Some companies even offer wine tasting courses as part of their employee benefits, Tian said.

"With the growing Chinese emphasis on health and wellness, red wine is increasingly favored by consumers for its natural health benefits," she said. "In China, wine is not just a beverage; it's a reflection of a lifestyle attitude."