China’s Gen Z
Gen Z was a global topic in the wine industry. While the younger generation in Europe and the US often viewed wine as old-fashioned—raising concerns among industry professionals—their Chinese peers who saw wine as a fashionable choice, represented a beacon of hope.
Young people in China were increasingly willing to try wine instead of baijiu, a high-alcohol beverage deeply rooted in local drinking culture. The tradition of mulled wine, common in Europe during winter, was primarily embraced by young people in China.
Moreover, Gen Z contributed to wine purchases through social media and online shopping, alongside the growing trend of dry white wine.
Wine giants also recognized this trend. Capitalizing on it, Penfolds launched One by Penfolds two years ago, featuring stylish packaging tailored for a younger audience. This year, Penfolds enlisted popular Chinese singer Hua Chenyu as a spokesperson and hosted wine-themed parties to engage young consumers.
However, the Chinese Gen Z faced challenges, notably limited disposable income, which restricted their ability to purchase premium wines. As a result, they tended to be more price-sensitive when buying wine, making these pain points important to consider.
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