IWSR: Sparkling Wine a Rare Bright Spot in China’s Slowing Alcohol Market

Sparkling wine is emerging as a rare bright spot in China’s declining alcohol market, according to a new report from the IWSR, the global leader in beverage alcohol data and insights.

While overall alcohol consumption in China dropped in 2024, sales of sparkling wine rose 10%, bucking a broader downward trend across categories. Sales of still wine fell 9%, contributing to a 7% year-on-year decline in total wine volume, which includes still, sparkling, aperitifs, fortified wines, yellow wine, sake, and other fruit wines.

The total alcohol market—including beer, spirits, and wine—contracted 5% in volume in 2024, according to the IWSR findings shared with Vino Joy News. From 2019 to 2024, the compound annual growth rate (CAGR) for total alcohol was -3%, while wine saw a steeper -15% CAGR.

“Traditionally, China has been a red wine and dark spirits market, as most alcohol consumption was tied to business occasions,” said Shirley Zhu, research director at IWSR. “As those occasions declined significantly and consumers scaled back spending due to economic pressure, personal and casual drinking became the main use case.”

That shift in behavior has opened the door for lighter, more approachable products—including sparkling wine and white wine—especially among younger drinkers. As Vino Joy News previously reported, sales of Prosecco and other sparkling wines have performed particularly well in China’s coastal cities, especially in Shanghai. With their crisp taste and approachable profile, these wines are increasingly popular among young consumers and frequently ordered in bars and restaurants.

Meanwhile, as company-related spending in nightlife venues has contracted, expensive champagne have gradually been replaced by more affordable sparkling options. Prosecco and similar wines have now become staples in club and bar procurement channels.

This trend is echoed in official trade data. According to China Customs, the country imported 6.69 million litres of sparkling wine in 2024, a 13.23% year-on-year increase, while the total import value fell 14.36% to US$ 67.2 million, indicating a significant increase in lower-priced imports.

The momentum has continued into 2025. From January to May, sparkling wine imports rose 18.81% year-on-year to 2.83 million litres, even as import value declined a further 5.78% to US$ 25.2 million. This suggests that the 2024 inventory was successfully absorbed by the market and that importers are confident enough to restock—aligning with the positive sales trend identified by IWSR.

Outlook: Headwinds Remain, but Recovery Is Possible

Looking ahead, IWSR forecasts continued pressure across the alcohol market in China. Between 2024 and 2029, the overall Total Beverage Alcohol (TBA) category is expected to contract at a -1% CAGR, while wine is projected to decline -3% annually.

Zhu noted that China’s economic momentum is slowing. Ongoing global trade uncertainties—including U.S. tariffs on Chinese exports—are weighing on the country’s export-led industries and dragging on broader economic performance. At the same time, unfavourable demographic trends, such as rapid population ageing and overall decline, are expected to further suppress alcohol consumption in the latter half of the forecast period.

Still, she said, not all is bleak. A growing middle class and improving financial confidence among this demographic may provide a foundation for mid-to-long-term recovery, particularly for imported wine and whisky.

“The road to recovery is proving more challenging than expected, with consumer sentiment remaining subdued,” Zhu said. “However, continued growth of the middle class, and more confidence among that group about their finances, will support a sustainable recovery in some categories, including imported wine and whisky, in the mid-to-long term.”