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China’s Wine and Spirits Market (1): Wine Consumption Trends and Habits

26 November 2020



Today, as drinking wine has become part of the daily life of many mainland consumers, China is tipped to become the world’s second largest wine consumer by the year 2023 by some industry estimates1. According to a survey conducted by HKTDC Research2, 41% of the mainland respondents drink wine at least once a week. Red wine is the most popular, with 94% of respondents having purchased or consumed red wine in the past year, followed by white wine (35%), and champagne/sparkling wine (25%). There is a general belief that drinking wine is good for health, with 54% of respondents saying this is why they buy and drink wine, the most popular of all the reasons cited. It is interesting to note that Covid-19 has not made a significant impact on the drinking habits of wine consumers in China. A large proportion of respondents (42%) reported that their frequency of drinking wine was more or less the same as before. The survey shows that wine drinking has already become a firm habit among mainland wine consumers and is unlikely to change in the near future.

Better Informed Consumers

Survey respondents were asked how much they knew about wine and how they would rate themselves: as a beginner (with limited knowledge of wine, who would take other people’s advice before making purchase decisions), intermediate (with some knowledge of wine and an interest in learning more), or connoisseur (with years of experience and an in-depth knowledge of wine). Among all the respondents, 75% rated themselves as beginners, 24% as intermediate and the remaining 1% as connoisseurs.

Those in the age group 36-45 were most knowledgeable about wine, with 28% identifying themselves as intermediate. A similar proportion of female respondents as male rated themselves intermediate. This shows that a significant number of female wine consumers on the mainland would like to learn more about wine. The respondents’ knowledge of wine did not vary markedly with monthly household income or with city of residence. According to the survey, the majority of mainland wine consumers are still beginners, but the number of more sophisticated drinkers is gradually growing across the country. These people treat tasting and learning more about wine as a lifestyle choice.

Level of Wine Knowledge, by Gender and Age (%)


Overall

Gender

Age

Male

Female

26-35

36-45

46-55

No. of respondents

1,440

1,008

432

480

480

480

Beginner – limited in-depth knowledge

75

75

76

78

71

77

Intermediate – interested in acquiring more knowledge about wine

24

24

22

21

28

22

Connoisseur – years of experience in savouring wine

1

1

1

1

1

1

Base: All respondents (n = 1,440)

The More Wine Knowledge the Higher Drinking Frequency

According to the survey, 41% of the respondents drank wine once or more a week. The frequency of their drinking was in direct proportion to their knowledge of wine. Among the beginners, the majority drank wine occasionally, with only 21% of them consuming wine once or more a week in the six months prior to the survey. By comparison, intermediate respondents drank more frequently, with 95% of them consuming wine once or more a week in the past six months. The biggest difference between beginner and intermediate drinkers was how often they drank wine. A respondent at the focus group said: “I think learning about wine is a process. At first, I saw wine as one of many drinks, but gradually as my taste buds have adjusted to the taste of wine, I wanted to know more about the wines and their background. I also began to join groups of wine lovers and attend wine tasting events.”

More respondents aged 36-45 rated themselves as intermediate, and they also drank wine more often. Among this age group, 45% consumed wine once or more a week during the six months prior to the survey, higher than the 36% of their counterparts aged 26-35 and the 39% of those aged 46-55. The frequency of wine drinking was more or less the same for respondents of different gender, different monthly household income, or different city of residence.

Wine Drinking Frequency in the Past 6 Months, by Age and Wine Knowledge (%)



Overall

Age

Level of Wine Knowledge

26-35

36-45

46-55

Beginner

Intermediate

Connoisseur*

No. of respondents

1,440

480

480

480

1,084

340

16

Once or less a month

40

41

36

43

53

0

0

2-3 times a month

20

23

19

18

25

4

0

Once a week

12

10

12

12

10

16

0

2-3 times a week

14

13

17

11

6

38

0

4-6 times a week

9

8

9

10

3

26

0

Once every day

6

5

7

6

2

15

100

Once or more a week

41

36

45

39

21

95

100

*Note: Since only 16 respondents rated themselves as connoisseur level, the figures may not be representative enough

Base: All respondents (n = 1,440)

Red Wine is Most Favoured

Among all types of wine, red wine was purchased and consumed by the largest number of respondents, with 94% of them saying that they had bought or consumed red wine in the past year. White wine came second, at 35%, while champagne/sparkling wine and rosé were consumed by fewer people, accounting for only 25% and 13% respectively. It was suggested that red wine took the lion’s share because there were more wide-ranging occasions for drinking red wine. A participant at the focus group said: “I usually drink red wine when I have dinner at Western restaurants. I would only drink champagne on certain celebratory occasions, such as promotion parties. You can’t beat the boisterous atmosphere created by the bubbles gushing out from a bottle of champagne when it is opened.”

Although red wine occupies a dominant position, white wine is beginning to win the heart of certain consumer groups. Among respondents in the 26-35 and 36-45 age groups, 38% and 36% respectively had purchased or consumed white wine in the preceding year, higher than the 32% of their counterparts aged 46-55. In terms of wine knowledge, 40% of those at intermediate level indicated that they had purchased or consumed white wine in the past year, a proportion higher than that for beginners (33%).

Champagne and sparkling wine are currently more popular with young consumers and higher earners. Among respondents in the 26-35 age group, 28% said they had bought or consumed champagne or sparkling wine in the previous year, a higher percentage than that of their counterparts aged 36-45 (26%) and those aged 46-55 (22%). In terms of income, 30% of the respondents with a monthly household income of RMB30,000 or above had purchased or consumed champagne or sparkling wine in the previous year. For respondents with a monthly household income of RMB20,000 or below the percentage was 21%, while those with a monthly household income of RMB20,000-30,000 it was 28%. The type of wines preferred by respondents of different genders or residing in different cities was more or less the same.

Type of Wine Bought or Consumed in the Past Year, by Gender and Age (%)


Overall

Gender

Age

Male

Female

26-35

36-45

46-55

No. of respondents

1,440

1,008

432

480

480

480

Red wine

94

94

93

93

95

94

White wine

35

35

34

38

36

32

Champagne/sparkling wine

25

25

27

28

26

22

Rosé

13

14

13

11

15

14

Base: All respondents (n = 1,440)

Type of Wine Bought or Consumed in the Past Year, by Monthly Household Income and Wine Knowledge (%)


Overall

Monthly Household Income (RMB)

Level of Wine Knowledge

Under 20,000

20,000 - 30,000

Over 30,000

Beginner

Intermediate

Connoisseur*

No. of respondents

1,440

603

571

266

1,084

340

16

Red wine

94

95

94

92

94

93

94

White wine

35

35

36

33

33

40

44

Champagne/sparkling wine

25

21

28

30

26

21

38

Rosé

13

13

13

16

13

13

13

*Note: Since only 16 respondents rated themselves as connoisseur level, the figures may not be representative enough.

Base: All respondents (n = 1,440)

Health Factor Drives Wine Consumption

The notion that wine is good for health is deeply rooted in the minds of mainland consumers. 54% of the respondents said that this was the reason why they purchased and consumed wine, the highest percentage of all reasons cited. This notion was particularly common among the older respondents. Among respondents in the 36-45 and 46-55 age groups, 59% and 55% respectively named “drinking wine is good for health” as their reason for buying and consuming wine, higher than the 47% of their counterparts aged 26-35.

Other major reasons for purchasing and drinking wine were “the expression of a tasteful life” (39%), “taste preference” (37%), and “relieving stress” (37%). One participant in the focus group remarked: “To me, enjoying the sunshine on a terrace in a sunny afternoon with a glass of wine in hand and a pleasant scenery in front is enjoying life in a tasteful way.” Another respondent said: “My job is rather tedious, drinking wine before going to bed can relieve me of the day’s fatigue.” Apparently, nowadays many mainland consumers drink wine for personal reasons and not just to socialise.

Although socialising was not the main reason given by mainland consumers for buying and drinking wine, the proportion of male respondents purchasing and consuming wine as a form of social etiquette was higher than that of their female counterparts. 34% of the male respondents named social etiquette as the reason for purchasing and consuming wine, a higher percentage than the 22% of female respondents. A male respondent pointed out at the focus group: “To me, wine can bridge the gap between people and is something indispensable in promoting human relations. Drinking wine with friends at a gathering can improve friendship, and drinking with business clients during a meal can make the process of business negotiation smoother.” As for women, they saw wine as a beauty drink, with 43% of the female respondents purchasing and consuming wine for beauty reasons, a percentage much higher than that of their male counterparts (10%). The reasons for buying and drinking wine given by respondents with different monthly household incomes, different levels of wine knowledge and residing in different cities did not vary significantly.

Reasons for Buying and Drinking Wine, by Gender and Age (%)


Overall

Gender

Age

Male

Female

26-35

36-45

46-55

No. of respondents

1,440

1,008

432

480

480

480

Good for health

54

54

53

47

59

55

Expression of a tasteful life

39

40

39

42

39

37

Taste preference

37

39

34

38

39

35

Relieving stress

37

36

37

38

34

37

Social etiquette

30

34

22

29

29

32

Matching with food

27

28

25

28

29

24

Beauty

20

10

43

18

21

20

Lower alcohol content, not easily get drunk

20

21

16

17

19

22

Trendy

13

14

12

15

12

14

Trying novel things

11

12

8

13

8

10

Understanding foreign cultures

8

9

7

10

7

8

Collection and investment

2

2

2

2

1

2

Note: Respondents were asked to pick no more than three reasons.

Base: All respondents (n = 1,440

Female Consumers are Loyal Wine Drinkers

In addition to wine and spirits, the main subjects of this survey, consumers also drank other alcoholic beverages. The wine drinkers surveyed had consumed beer (54%), followed by Chinese white spirits (36%) and Chinese yellow wine (17%) in the past six months. 11% of the respondents had consumed other types of imported liquor (e.g. fruit wine, soju, sake), while the percentages of those having consumed ready-to-drink alcoholic beverages (8%) and tonic wine (7%) were rather low.

Compared with their male counterparts, female consumers seldom drank alcoholic beverages other than wine and spirits. Only 37% of the female respondents indicated that they had drunk beer in the last six months, a much lower percentage than the 62% of the male respondents. The proportion of female consumers drinking Chinese white spirits and Chinese yellow wine also followed the same pattern, with only 18% of them having consumed the former and 10% the latter in the past six months. Both percentages were much lower than that of their male counterparts at 44% and 20% respectively. The proportions of female respondents consuming other imported alcoholic drinks (13%) and ready-to-drink alcoholic beverages (11%) were slightly higher than that of their male counterparts at 11% and 6% respectively. Overall, the proportion of respondents consuming these two types of alcoholic drinks was low. The above findings show that mainland female wine drinkers seldom consumed other alcoholic beverages and their loyalty to wine was high.

Types of Alcoholic Drinks Other Than Wine Consumed in the Past 6 Months, by Gender (%)


Overall

Gender

Male

Female

No. of respondents

1,440

1,008

432

Spirits (e.g. brandy, whisky)*

55

55

54

Beer

54

62

37

Chinese white spirits

36

44

18

Chinese yellow wine

17

20

10

Other imported alcoholic drinks (e.g. fruit wine, soju, sake)

11

11

13

Ready-to-drink alcoholic beverages

8

6

11

Tonic wine

7

7

5

*Note: At least 50% of respondents in each city must have purchased and consumed imported spirits in the past six months.

Base: All respondents (n = 1,440)

Drinking Habits Unaffected by Pandemic

In early 2020 when Covid-19 hit China, most of the restaurants and offline retailers across the country were closed in compliance with infection control measures implemented by the government. However, these measures did not have a great impact on the wine drinking habits of consumers. According to this survey, the majority of respondents (42%) indicated that their frequency of drinking wine during the pandemic was about the same as before Covid-19. The proportions of those saying that their frequency of drinking wine had slightly increased (25%) and those saying their frequency had slightly dropped (22%) were close. Only a small number of respondents said their frequency of drinking wine had increased significantly (6%) or decreased significantly (5%). The wine drinking frequency of respondents of different gender, age, income, wine knowledge, and location remained pretty much the same during and before the coronavirus pandemic.

In the midst of the Covid-19 crisis, when almost all offline retail stores were closed, the majority of mainland wine drinkers still managed to drink as much wine as before the pandemic. This shows that their wine drinking habits have a certain resilience. Although consumers could not go out to buy wine or have dinner with friends at the height of the crisis, they could still consume their stock at home or make purchases online. To mainland Chinese wine consumers, drinking wine has become a part of their life, and this is unlikely to change in the near future.

Positive Market Outlook Post-Pandemic

Although the Covid-19 pandemic has dealt a heavy blow to the global economy, the post-Covid-19 wine market in China is expected to remain steady. In this survey, the majority of respondents (81%) indicated that in the days to come the types of wine they expect to buy or consume will be more or less the same as presently. 64% said their frequency of drinking wine would be about the same, and 60% believed the grades of wine they would purchase would also remain about the same. Apparently, the coronavirus crisis has not shaken the foundations of China’s wine market. It is worth noting that 25% of the respondents said they would in future buy higher quality wine, while only 15% pointed out they would buy lower quality wine than at present. At the same time, more respondents (21%) indicated that their frequency of drinking wine in future would decline, while 15% said that it would increase. This suggests that in the days to come, consumers may adopt a “less frequent, higher grades” strategy in purchasing wine. In other words, they will drink wine less frequently but buy wine of higher quality and price.

Moreover, due probably to the fact that consumers had gained more experience in buying wine online during the pandemic, 52% of the respondents said that to purchase wine in future they will consider both online and offline channels. 31% of them even said that they will make more purchases from online channels. It can be expected that online wine vendors will have more buyers in the days to come.

Compared with other cities, respondents in Guangzhou (22%), Shanghai (21%), Beijing (23%), Chengdu (20%) and Xian (21%) had the greatest interest in buying more varied types of wine in the future. This reflects that people residing in these large cities are more curious about imported foreign wines. A significant proportion of beginners (20%) also showed interest in buying more types of wine in future, more so than their counterparts at intermediate level (16%). Where the grades of wine are concerned, more respondents of an older age would buy higher grade wine in future. 29% of those in the 46-55 age group said they would buy wine of higher grades in the days to come, a percentage higher than the overall of 25%. This indicates that in future, older consumers are likely to be the main buyers of fine wine.

Drinking Trend Forecasts for the Coming Year (%)


Overall

Guangzhou

Shanghai

Beijing

Chengdu

Harbin

Changsha

Nanjing

Xian

No. of respondents

1,440

180

180

180

180

180

180

180

180

Types of wine to purchase or consume

More types

19

22

21

23

20

17

13

13

21

Same as currently

81

78

79

77

80

83

87

87

79

Drinking frequency

Less frequent

21

19

19

19

23

21

21

26

19

Same as currently

64

62

66

67

59

62

64

61

70

More frequent

15

18

14

14

18

17

14

13

11

Grades of wine to purchase

Higher grades

25

23

22

26

27

31

25

22

28

Same as currently

60

62

61

58

54

58

66

58

60

Lower grades than currently

15

15

18

16

19

11

9

20

12

Purchase channels

Purchase more online

31

29

34

31

36

33

28

30

28

Purchase more offline

17

12

18

17

15

18

21

22

16

Consider purchasing both online and offline

52

59

48

53

49

49

51

48

56

Base: All respondents (n = 1,440)

Drinking Trend Forecasts for the Coming Year, by Age and Wine Knowledge (%)


Overall

Age

Level of Wine Knowledge

26-35

36-45

46-55

Beginner

Intermediate

Connoisseur*

No. of respondents

1,440

480

480

480

1,084

340

16

Types of wine to purchase or consume

More types

19

20

16

19

20

16

13

Same as currently

81

80

84

81

80

84

88

Drinking frequency

Less frequent

21

19

22

22

20

23

19

Same as currently

64

64

64

64

64

64

38

More frequent

15

17

14

14

15

13

44

Grades of wine to purchase

Higher grades

25

26

22

29

26

25

13

Same as currently

60

60

63

56

60

59

69

Lower grades than currently

15

15

15

16

15

16

19

Purchase channels

Purchase more online

31

30

32

31

31

31

25

Purchase more offline

17

16

19

17

17

19

6

Consider purchasing both online and offline

52

54

49

51

52

50

69

*Note: Since only 16 respondents rated themselves as connoisseur level, the figures may not be representative enough.

Base: All respondents (n = 1,440)

Conclusion

Wine dealers wishing to sell wine to mainland China are facing an increasingly mature market where about one quarter of the wine consumers have a degree of knowledge about wine and drink wine frequently. Many consumers see drinking wine as part of their daily lives. Even while the coronavirus swept through the country, consumers did not change their wine drinking habits significantly. In the light of this, wine dealers tapping the mainland market should offer a range of wine types, of different quality and price, for customers to choose from. This would allow consumers with different levels of wine experience to pick the most appropriate wine for their lifestyle.

This survey found that women constitute an important consumer group. Female drinkers are not only on a par with their male counterparts in terms of what they know about wine and how often they drink, they are also loyal wine lovers. Wine dealers who give more thought to promoting wines tailored to female drinkers can expect good results.


1 Source: Vinexpo and IWSR

2 See Appendix for background information on this consumer survey.


Appendix

Survey Background

Mainland China is one of the world’s fastest-growing markets for wine and spirits. As the Covid-19 pandemic continues, it has also been one of the few regions where economic activity has been able to recover within a short time. The mainland’s retailing and catering sectors have been developing rapidly in recent years, and as they are likely to grow continuously after the pandemic is under control, the chances are that sales of wine and spirits will be sustained in the future.

Since the removal of wine duties in 2008, Hong Kong has become a trading hub for the industry in the Asia-Pacific region. Not only is there a full range of wine-related services available in Hong Kong, but wine traders can also benefit from customs-facilitation measures when importing wine to the mainland through the city. With the mainland wine and spirits market developing apace, more business opportunities are in store for Hong Kong. In view of this, HKTDC Research conducted a consumer survey on the mainland’s wine and spirits market to grasp some knowledge of the mainland middle class’ demand characteristics, spending mentality and purchase preferences for wine and spirits, in order to help Hong Kong companies understand this market and expand their businesses on the mainland with a more targeted approach.

Methodology

The survey carried out in May 2020 polled 1,440 mainland wine and spirits consumers by online questionnaire. Six online consumer focus group discussions had earlier been held in Guangzhou, Shanghai and Xian – two in each city – with the objective of taking an in-depth look at the spending mentality of mainland wine and spirits consumers.

  • Design of Online Focus Groups

Cities

Guangzhou, Shanghai, Xian

Number of groups

Two in each city; six in total (seven participants in each discussion)

Participant requirements

  • Guangzhou and Shanghai: Monthly household income of RMB15,000 or more, or monthly personal income of RMB8,000 or more
  • Xian: Monthly household income of RMB9,000 or more, or monthly personal income of RMB5,000 or more
  • Have bought and drunk wine or spirits costing RMB300 or more per bottle in the past month
  • Have bought and drunk wine and spirits costing RMB300 or more per bottle in the past six months
  • Decision maker in purchasing wine or spirits
  • Have the habit of drinking wine; at least two people in each group have drunk wine at least once every week in the past month
  • At least two people in each group have participated in wine-related activities or received wine-related services in the past year (such as participating in a wine appreciation class or visiting a wine fair)

Composition of groups

Group 1

Group 2

  • Aged 26-40
  • At least two females
  • In each group, at least two people in each of the age groups 26-30, 31-35 and 36-40
  • Aged 41-55
  • At least two females
  • In each group, at least two people in each of the age groups 41-45, 46-50 and 51-55
  • Design of Online Questionnaire Survey

Cities

Guangzhou, Shanghai, Beijing, Chengdu, Harbin, Changsha, Nanjing, Xian

Number of respondents

180 in each city; 1,440 in total

Respondent requirements

  • Local residents, aged 26-55
  • Guangzhou, Shanghai, Beijing: Monthly household income of RMB15,000 or more, or monthly personal income of RMB8,000 or more
  • Chengdu, Harbin, Changsha, Nanjing, Xian: Monthly household income of RMB9,000 or more, or monthly personal income of RMB5,000 or more
  • Have bought and drunk imported wine in the past six months; at least 50% of the respondents in each city have bought and drunk imported spirits in the past six months
  • Decision maker in purchasing wine or spirits

Distribution of respondents


Male

Female

Aged 26-35

42

18

Aged 36-45

42

18

Aged 46-55

42

18

Total

180 respondents per city

  • Average Monthly Personal Income of Respondents

City

Average Monthly Personal Income (RMB)

City

Average Monthly Personal Income (RMB)

Guangzhou

13,364

Harbin

10,386

Shanghai

13,894

Changsha

10,194

Beijing

13,781

Nanjing

10,331

Chengdu

9,867

Xian

10,508



Overall average

11,541

  • Average Monthly Household Income of Respondents

City

Average Monthly Household Income (RMB)

City

Average Monthly Household Income (RMB)

Guangzhou

26,208

Harbin

21,308

Shanghai

26,558

Changsha

20,503

Beijing

26,431

Nanjing

20,556

Chengdu

20,333

Xian

21,722



Overall average

22,952

  • Distribution of Respondents by Marital Status and Child Status (%)


Overall

Guangzhou

Shanghai

Beijing

Chengdu

Harbin

Changsha

Nanjing

Xian

Single

3

1

4

5

1

1

3

3

3

Married with no children

5

4

7

4

3

4

7

8

4

Married with children

92

95

89

91

97

95

91

88

92

  • Distribution of Respondents by Education Level (%)


Overall

Guangzhou

Shanghai

Beijing

Chengdu

Harbin

Changsha

Nanjing

Xian

Senior high/vocational high/technical school

7

3

6

5

8

8

8

6

11

Post-secondary

21

19

14

18

24

20

23

23

25

Undergraduate

66

71

72

69

62

66

63

64

61

Postgraduate or above

6

7

8

8

6

6

6

6

3

  • Distribution of Respondents by Occupation (%)


Overall

Guangzhou

Shanghai

Beijing

Chengdu

Harbin

Changsha

Nanjing

Xian

Civil servant/teacher/nurse

3

5

3

5

5

2

4

3

1

Professional

9

7

5

10

12

10

10

6

10

Corporate senior management

3

4

8

6

1

2

2

0

2

Corporate middle management

8

13

14

15

4

4

4

4

4

Corporate junior management

22

22

27

20

23

21

18

23

22

Corporate general staff

39

34

29

28

42

43

48

48

42

Labourer/technician

2

1

3

2

3

2

4

1

4

Attendant/sales personnel

2

2

1

2

2

3

4

2

4

Private business owner

7

7

6

8

8

9

4

9

8

Freelancer

3

5

3

5

1

3

1

4

2


Note: Percentages may not add up to 100% due to rounding.

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Article Topics

ARTICLE TOPICS

FOOD & BEVERAGES24667
MAINLAND CHINA35607
COVID-19141387
DRINKING FREQUENCY145647
RED WINE126699

ARTICLE TOPICS

FOOD & BEVERAGES24667
MAINLAND CHINA35607
COVID-19141387
DRINKING FREQUENCY145647
RED WINE126699
WHITE WINE127253
CHAMPAGNE120044
FEMALE CONSUMERS142911

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