China’s Mid-Autumn Wine Market Faces Sluggish Sales, Importers Say

A month leading up to the Mid Autumn Festival, a key season for wine sales, importers are grappling with a mixed bag of results. While August brought a slight improvement over the summer lull, wine distributors report that demand is far below last year’s levels, leaving many to wonder if the festive season can still deliver the expected boost.

Set for Sept. 29 this year, the Mid Autumn Festival typically drives significant wine demand through gifts and banquets. However, importers across China’s major wine-consuming regions who talked to us are reporting a more subdued market, even though some categories are defying the broader downturn.

Sales Up From July, But Down From Last Year

Shanghai Pran Cellar Australia, one of the top 50 wine importers in China, saw a 30% increase in August sales compared to July, driven in part by a large order in preparations for the festive season, said CEO Hong Boyong.

Similar trends were reported by another leading wine importer Fond Wine in China’s coastal city Xiamen. General Manager Wu Yonglei said August sales were 20-30% higher than in July, while Euphrosyne Wine Culture Diffusion in port city Tianjin in northern China saw sales more than double. “August sales were indeed substantial, more than doubling the performance of July,” said Chen Hui. However, he admitted that the large increase was mainly due to July’s extremely poor performance, with only a handful of orders.

“Last year, one of my distributor clients sold 200 cases of premium wine to a factory, showcasing strong sales ability. But this year, there hasn’t been a single order yet,” said Pan Liu, marketing director of Wintek (Shenzhen) Import & Export Ltd. “Last year’s Mid-Autumn sales were already weak, only one-third of 2022’s. And based on what I see now, this year might only reach one-fourth of 2022’s sales.”

An importer based in Guangdong, who preferred to remain anonymous, echoed similar sentiments, noting that this year’s market was noticeably colder than last year. “Almost all channels are facing the same situation. I believe all wine merchants would give you the same feedback. The underlying cause is the poor economic environment, and it’s not just affecting the wine industry—every industry is struggling,” she explained.

Lei Yumeng, general manager of Zhejiang Xuanyi International Trade Co., Ltd., said his company’s Mid-Autumn sales this year are down by half compared to 2022. He attributed the decline to weaker consumer confidence and reduced gift-giving enthusiasm.

Pan Liu of Wintek pointed out that it’s not that people are unwilling to give gifts or host dinners, but that the demand for these activities is diminishing. “With the poor economic situation, many businesses that used to exist are now gone, and some projects even involve debt issues. As a result, people don’t have the need to treat clients to meals or give gifts, which has hurt wine sales,” he explained.

Distributors Cautious About Stocking Up

Another factor behind the sluggish market is cautious stocking by distributors. “Distributors are placing orders later and in smaller quantities,” said Wu of Fond Wine in Xiameng. “They’re facing difficulties, and we’re trying to support them by not setting minimum order quantities.”

Chen echoed this sentiment, noting that distributors are now only placing orders when their clients express demand. “In the past, when distributors were confident, they would place bulk orders of 100 cases if they recognized the quality of a product we recommended. But now, things are different. Distributors are more cautious and only restock when there’s demand from their clients,” he explained.

High-End Brands More Resilient

While the overall market remains sluggish, luxury brands are performing better, importers said.

Li Yajun, CEO of Merveille Business in Shanghai, noted that there has been increased interest in prestigious Bordeaux fine wines such as Château Lafite Rothschild, Château Mouton, and Italy’s Sassicaia. “Since August, we’ve been shipping second wines from Lafite and Mouton every week, partly due to gift-giving for the festival,” Li said.

Li further explained, “I was chatting with a friend recently, and he told me that his business investment is currently on hold, so he’s spending more time on collecting and enjoying wine. This trend is helping luxury brands perform better. However, mid-range and lower-end products are seeing milder demand with no significant uptick.”

A Penfolds distributor in Northeast China also reported a slight uptick in sales of Penfolds Bin 389 and Bin 407 in late August, though other brands showed no similar increase. In addition to Penfolds, this distributor also deals with Lafite Rothschild, Montes, and Weimar Winery wines.

Lei of Zhejiang Xuanyi International Trade, who supplies to tobacco shops and e-commerce channels, said restocking enthusiasm for most wines is low, though Penfolds is performing relatively well. “Bin 407, which is popular for business occasions, and Koonunga Hill, favored by e-commerce, are being restocked more frequently,” he said.

As for entry-level wines, Wu noted that dry whites have been benefiting from the trend of dining gatherings. “Whether it’s white or red wine, customers are still mostly buying entry-level products priced around RMB 100,” Wu said.