The global wine industry faces challenges, but China is optimistic as it embraces the Year of the Snake. This period brings celebration and potential growth for China's wine sector. Despite international challenges, it could be a promising time for China's wine industry. Several key themes are emerging this year.

China lifted tariffs in March, leading to a surge in Australian wine imports. These imports jumped from $10 million in 2023 to over $500 million in 2024, making Australia the top wine supplier by value. This shift occurred as imports from France, Spain, Italy, and Chile declined. Treasury Wine Estates, with its brand Penfolds, played a significant role. However, cautious consumer spending and changing tastes resulted in modest sales. Penfolds' acquisition of Ningxia winery Stone & Moon is noteworthy, with hopes for a wine trade recovery, especially for bold reds. The central government's potential stimulus measures to boost spending are also being closely watched.

Despite a shrinking global wine market, Chinese producers are looking abroad. Brands like Changyu, foreign-owned wineries like Ao Yun, and boutique producers like Silver Heights and Helan Qingxue have been active in overseas fairs and tastings. Ambitious young entrepreneurs are joining this trend. For instance, niche producers like Petit Mont, Jiangyu, and Zaxee showcased their wines in Singapore in December. Xiao Pu followed with tastings in Malaysia and Vietnam. Some of these producers are planning a major Chinese wine launch in New York soon. More producers are expected to seek international presence, with some finalizing export license registrations.

Ningxia has been a prominent region in China's fine wine scene for over a decade, known for its quality and numerous contest medals. However, other regions are gaining attention. Shangri-la in the south is praised for its diverse terroirs and high-quality small-volume producers. Yili in the northwest is emerging as a competitor in terms of quantity and value. Regions like Huailai near Beijing and Yantai on the east coast are also in the race. Ningxia will remain in the spotlight this year, hosting high-profile events like the Concours Mondial in June, but faces growing competition.

The spending power of Generation Z and Millennials is rising, but their loyalty is unpredictable. These tech-savvy consumers are exposed to a wide range of wine brands, influencers, events, and retailers, along with options from other alcohol categories. They tend to drink less than older generations, prefer lighter wines, and prioritize taste over status. This shift has coincided with the rise of white wines, such as German Riesling and New Zealand Sauvignon Blanc. These consumers are also interested in lesser-known wine-producing nations, grape varieties, and styles, including lighter reds and niche wines like skin-contact and natural wines. Local producers and importers are responding by offering more such wines with creative packaging and intriguing stories. This trend is expected to continue as the competition for younger buyers' attention intensifies both online and offline.

Industry veterans are exploring new paths in the Year of the Snake. Influencer Wang Shenghan, known as Lady Penguin, surprised her followers by downsizing her online presence and portfolio. She launched four local wines from Ningxia, sparking online debate about their prices, packaging, and bottle size. Grace Vineyard, a pioneer in China's wine industry, is expanding its portfolio by releasing its first gins, Angie Gin, from its Fujian province distillery Ceilidh. Grace is also progressing with its whisky, with over 1,000 barrels in storage. Other wineries, retailers, and influencers are seeking new projects to improve their bottom line in a challenging market.

Imported brandy and whisky have twice the value of imported bottled wine in China, and numerous distillation projects have emerged nationwide. Global drinks giants like Pernod Ricard and Diageo, along with baijiu producers Gujing and Yanghe, are investing in distilleries. Established brands like Laizhou, Daiking, and Goalong, as well as creative models like Nine Rivers, are also involved. This interest in spirits extends to smaller Chinese wineries, where sales are challenging, products are aging, and distillation equipment is common. Some wineries are exploring spirits as a side business, with brandies using Marselan, a signature grape of China, as an example.

While fake wine stories persist in China, there is growing attention to intellectual property rights, particularly Geographical Indications (GIs). A 2021 China-Europe pact protects 100 GIs from each side, with more than half of Europe's GIs related to wine. This year, an additional 175 GIs per side will be added. China is promoting GIs through conferences, registration guides, and state media coverage. This effort aims to boost sales and spread Chinese culture globally. China is also looking abroad in other ways, including joining the Organisation of Vine and Wine.

There are other themes to watch. Rising pride in quality local products is helping Chinese producers. The fate of wine contests, master classes, trade fairs, and MWs/WSET diplomats is also significant. In 2024, the Wine Advocate paused its China reports, Bettane & Desseauve increased its focus, and James Suckling solidified his position with another Top 100 Wines of China list and cooperation with the Yinchuan Wine Association. They all face a struggling market. While the Year of the Snake offers many stories, the biggest challenge is finding more wine consumers and sales. The central government's ability to boost consumer spending could be crucial.