In the bustling aisles of Chinese supermarkets, a curious absence is felt. While consumers eagerly reach for organic vegetables and fruits, their options for organic wine are surprisingly sparse.
Unlike their Western counterparts, Chinese shoppers don’t have the luxury of perusing rows of wines proudly bearing organic labels. Even at the China Food and Drinks Fair (CFDF)—the nation’s largest exhibition of alcoholic beverages—there’s no dedicated space for organic wines and spirits.
But this apparent lack of interest is misleading. Beneath the surface, China holds immense potential as a thriving market for organic wine. The real challenge lies not in consumer demand but in navigating the labyrinthine certification process that keeps many Western wines from being marketed as organic in the country.
China’s Hidden Appetite for Organic Wine
Consider the Bordeaux Superieur Organic Red Wine, a bottle that retails for a modest RMB 98 at Sam’s Club, the favored supermarket of China’s middle class. This wine has become so popular that the store had to impose a strict two-bottle-per-person daily limit. Even then, the 2022 vintage sold out by January, leaving eager customers waiting for the next batch, not available until July.
“We tried to manage the demand with a purchase limit, but it still wasn’t enough,” a representative from Bordeaux Vineam, the French winery behind the wine, told Vino Joy News.
What’s driving this demand? Shen Yi, a former senior manager at Weilong Grape Wine, China’s biggest organic wine producer , believes it’s rooted in a deep-seated concern for food safety. While Western consumers often opt for organic products to support environmental sustainability, Chinese buyers are primarily motivated by a desire to avoid pesticides and chemical fertilizers. This preference has long extended to organic fruits and vegetables, and now, increasingly, to wine.
Weilong Grape Wine recognized this trend early, becoming certified organic in 2008. The decision paid off handsomely. In 2016, the company reported RMB 781 million in revenue, with organic wines accounting for more than half of that figure and boasting a gross profit margin of 61.18%.
The growth of organic wine in China is outpacing the global average. The IWSR reports that while the global organic wine market grew at a compound annual growth rate (CAGR) of 5% from 2017 to 2022, the Chinese market surged ahead with an 8% CAGR. Industry experts now estimate China’s organic alcohol market to be worth RMB 1.5 billion (US$209.06 million).
However, there’s a significant hurdle for foreign wineries looking to tap into this lucrative market: trust. “Several Chinese organic wineries have had their certifications revoked in recent years, which has damaged their credibility,” Shen noted. “In contrast, imported organic wines are generally seen as more trustworthy.”
This perception was reinforced in 2023 when the State Administration for Market Regulation conducted a spot check on organic products. Eight wines—seven domestic and one imported—failed to meet the required standards, leading to the revocation of their organic certifications. Among the wines implicated were well-known brands like Yuanshi Vineyard and Chateau Aroma, as well as the imported ‘B.IO – bpuntoio’ Sangiovese by Italy’s Terre Cevico Soc. Coop. Agricola.
The Certification Conundrum
For Western organic wine producers, China represents a tantalizing opportunity—but one fraught with challenges. The crux of the issue lies in China’s refusal to recognize organic certifications from the European Union, the United States, or Australia. Wines certified as organic in these regions cannot be marketed as such in China, meaning the term “organic” (“有机” in Chinese) is off-limits for labels, packaging, and advertising.
The only exception is New Zealand, which signed a mutual recognition agreement with China in 2016. For all other regions, the path to organic recognition in China is arduous and expensive.
In one instance, a batch of French wine entered China through the port of Huangpu labeled as organic under France’s Agriculture Biologique certification. Upon arrival, the supplier was forced to revise the labels to comply with Chinese regulations, removing all references to the wine’s organic status.
Yet, there are success stories. The Bordeaux Superieur Organic Red Wine at Sam’s Club managed to retain its organic label in China, having secured local certification. But the process is not for the faint of heart—or wallet.
Shen Yi explains that obtaining Chinese organic certification requires a three-year transition period and can cost over RMB 30,000 annually, depending on the vineyard’s size. Additionally, wineries must cover the travel and accommodation expenses of Chinese assessors, which can be significant, especially for those located outside China.
“China’s organic certification standards are slightly stricter than those in the EU and Australia, so even wines already certified organic in those regions need to meet a higher bar here,” Shen adds.
Given the high costs and stringent requirements, China’s organic wine market is currently dominated by domestic producers. But for wineries from Europe, the U.S., and Australia, China remains a vast and largely untapped market worth the investment for those willing to navigate its complexities.
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