China's inbound wine trade contracted again in the first six months of 2026, with shipment volumes falling 11% year on year. The decline extends a long-running downward trend in imported wine consumption. Interestingly, total value rose slightly, suggesting buyers are becoming more selective rather than simply buying less.

The scale of the shift is striking. Last year's imports totaled 207 million liters valued at US$1.42 billion—a 72% drop from the 2017 peak. That downward trajectory has carried into 2026. Customs data show China brought in 101.4 million liters in the first half of 2026, down 11% from a year earlier. Yet value inched up 0.8% to roughly US$716 million, pushing the average import price up 13.3% to US$7.07 per liter.

Several forces are at work. A ban on alcohol at official banquets took effect in May 2025. Business entertaining has weakened, eroding banquet and gift-giving occasions. Broader economic headwinds have also dampened consumer spending. Shirley Zhu, China research director at IWSR, describes a cultural shift: "Alcohol consumption in China is migrating away from obligation and gifting and towards personal enjoyment."

Consultancy Ascentium argues the contraction doesn't mean demand has vanished—it has simply become narrower and more quality-focused. Consumers and importers now prioritize value, quality, and specific wine styles. Bulk wine, the cheapest segment, accounted for over a third of last year's volume but only about 3% of value. Sparkling wine stands out as the sole category growing in both volume and value this year.

Higher average prices don't reflect a spending rebound, Ascentium notes. Instead, importers are dropping the cheapest wines while shelf prices continue to fall. National Bureau of Statistics data show alcohol prices slipped 1.9% in 2025, and discounting remains widespread. Ahead of this year's Mid-Autumn Festival, merchants told Vino Joy News that shoppers were choosing better bottles within similar budgets—and wine was losing ground as a festive gift.

Since China removed tariffs on Australian wine in March 2024, Australia has reclaimed the top supplier spot, holding 41% of import value in 2025 and about 44% so far this year. Still, Australian export figures show mainland China shipments fell 15% to AU$756 million in the first half of 2026. New Zealand, by contrast, is gaining from growing interest in white wines. China's imports from New Zealand—88% white, mostly Sauvignon Blanc—jumped 58.5% in 2025 and 59.9% in the first half of 2026. France, meanwhile, saw value fall 18.8% and volume drop 36.1% in 2025. EU bottled wine imports slid another 16.6% in volume in the first half of this year.