From China to Japan, European wine (including Italy) slows down in the main Asian markets

Not so many years have passed since Asia was considered to be the great hope for the wine market with decisively interesting prospects for the future. The reasons were well founded, a wide continent, just think of China with its 1.4 billion people, in economic growth, growing economically and that had shown some interest in the wine product. But, the “feeling” has never blossomed completely for a series of reasons, both economic and cultural, and the strong expectations didn’t materialize. A downward trend that also concerned 2024, just think about the fact that, in the first 9 months of the year, Italian exports to China stopped “only” at 62 million euros (-11%), even if Japan, the main Asian outlet for European wines, again in the first 9 months of 2024, imported 146 million euros (+4%) from Italy. A scenario, on a general level, which is difficult anyway, and embraces all European wine, and which, in the year just ended, registered an important slowdown with continental China, Hong Kong, Japan, and South Korea which have registered significant drops according to analysis by “Vino Joy News”, based on data published by Eurostat, the statistical office of the European Union. The only exception has been Thailand which distinguished itself as a growing market supported by the recent tax reforms.
From January to October 2024, the exports of European wine to continental China scored a total of 456 million euros, -12.48% compared to the same period in 2023. Despite China revoking Covid-19 restrictions at the end of 2022, the persisting impact of the pandemic on the behavior of consumers remains evident. Looking at 2019, when export was worth 705 million euros, it is slightly lower than 65% confirming the fact that the market struggles to take off.
Regarding France, the greatest wine producer of wine in the world in value, exports to China are worth 300 million euros representing 65.88% of total exports to the Country of the Dragon, but with a drop of 13.57% on an annual basis. And, if Paris doesn’t exult, the other powers of European wine can’t be satisfied with the ongoing of the market: Italy stops at 72.91 million euros (-8.53%), Spain at 43.96 million euros (-15.7%), Portugal at 5.42 million euros (-14.44%). But there is an important exception, i.e. Germany, capable of inverting the trend with an increase of 15.94% of its exports to China (22 million euros), a growth which is attributable to its increasing interest towards white whines, firstly Riesling.
But, the drop in the exports of European wine has not been limited to China. Also, consolidated wine markets of Hong Kong (export value 258 million euros, -22.67%), and Taiwan (value 106 million euros, -12.78%) noticed remarkable drops. In South Korea, after the increase in wine consumption during the pandemic, the market continued to drop always in the referring period from January to October 2024 with exports scoring a total of 198 million euros, -20.3% compared to the same period in 2023.
Japan, the greatest Asian market for European wines (745 million euros of exports), registered a drop of 11.74%, even if it remains a key destination for the exports of European wine.
In contrast to the decline of other Asian markets, Thailand, which remains a “niche” market”, demonstrated a moderate increase in exports (+2.38%) for a value of 67,71 million euros. This growth is largely attributable to tax reforms of 2024 which eliminated an import duty of 54% on wine, and unified the consumption tax system, innovations that probably encouraged importers to increase their purchases.