Riesling Craze Fuels German Wine Export Boom in China

The German Wine Institute (DWI) announced at an export forum held in Oppenheim that Germany’s wine exports increased by 9% in both volume and value in the first three months of the year compared to the same period last year.

Notably, exports of German wines to China surged by 47% in value and 39% in volume in the first quarter of this year, compared to the same period last year. German wine exporters also saw double-digit growth in sales and revenue in the Netherlands, Poland, Japan, and Denmark compared to last year.

However, it’s worthy to note Chinese official customs data showed declines in German wine exports during the same period. From January to March, the import volume of bottled German wine was recorded at 788,100 liters, a decrease of 22.36% year-on-year, and the import value was US$5.1 million, down 19.04% year-on-year.

The difference, as explained by Wines of Germany’s China representative stems from counting methods. The data for January to March in China reflects the time when the goods arrive at the port, so it may include exports from Germany at any time between November 2023 and January 2024, considering the shipping time, whereas Germany counts from time of departure.

Despite this statistical variance, April witnessed a dramatic rebound, as shown by Chinese customs data, with import volumes and values of bottled German wine in China increasing by 29.64% and 65.19% year-on-year, respectively, underscoring a robust growth momentum.

The growth in German wine exports to China is attributed to strong demand for Riesling in the Chinese market. Gu Yuping, China representative for Germany’s leading sparkling wine producer Henkell Freixenet Group, when speaking to Vino Joy News confirmed that many importers had purchased German Riesling white wine from January to April, and the company’s sales of German Riesling to China also increased this year.

Gu explained that the popularity of white wine has risen, leading many to stock up before the peak season this summer. Regarding distribution channels, he noted that many Riesling wines enter consumer-focused venues such as small wine bars, e-commerce platforms, and restaurants, though the volume through business channels remains small.

As Gu mentioned, the rise of a mainstream consumer group for wine in China in recent two years has benefited white wines greatly, along with sparkling and boxed wines. According to Gu, the increased consumer interest has led to more Riesling being distributed through consumer-centric channels like e-commerce platforms, small wine bars, and restaurants.

However, Gu also cautioned about the sustainability of these high import volumes: “Based on experience, the capacity for Riesling white wine in China is less than three million bottles. With so many businesses importing it, if sales do not move quickly, there could be a situation similar to last year’s price ‘war’ with New Zealand’s Sauvignon Blanc. The growth in inventory also raises concerns that the high import volumes may not continue, which is a potential worry worth monitoring.”