When Wine Falters, Vermouth Finds Its Moment in China

In 2025, China’s wine imports continued to decline, while several well-known domestic baijiu brands grappled with price inversions. Yet those trends do not fully capture the dynamics of the country’s alcohol market. A wine-based fortified category — vermouth — is showing a notably different trajectory at the import level.

According to data released by China Customs, China imported 652,795 litres of small-packaged vermouth and similar products between January and November 2025, with a total import value of US$3.08 million. While vermouth remains a niche category compared with wine, its performance stands in contrast to the broader downturn. Over the same period, vermouth import volume rose 6.91% year on year, while import value increased 23.75%, making it one of the more active segments within an otherwise subdued alcohol import landscape.

France and Italy dominate supply

By country of origin, France and Italy continue to dominate China’s vermouth imports. Between January and November 2025, France exported US$1.46 million worth of vermouth to China, while Italy accounted for US$1.03 million. Combined, the two countries represented 80.7% of China’s total vermouth import value, reflecting a high degree of concentration.

At the retail level, several international vermouth brands have already established a degree of consumer recognition in China. A search for “vermouth” on JD.com, one of the country’s leading e-commerce platforms, shows a range of mainstream international brands on sale, including Italy’s Martini and France’s Dolin. These products are generally priced below 100 yuan per bottle. China’s domestic wine producer Changyu has also launched vermouth products, which have achieved a certain level of awareness in the local market.

Cocktail mixing remains the main consumption scene

In terms of consumption, vermouth in China is still primarily used as a cocktail ingredient. A spirits distributor familiar with the market said vermouth sales are largely concentrated in bars. “Vermouth is mainly used for cocktail mixing, and its sales channels are more focused on bars,” the distributor said.

Chen Xun, founder of Domaine,  a WSET training provider and a wine & spirits importer based in Southwestern China, echoed that assessment. He said cocktail preparation remains virtually the only mature consumption scenario for vermouth in China. “Because vermouth has a relatively distinctive flavour profile, it is difficult to drink neat, so it largely flows into the bar system as a cocktail component,” Chen said.

That said, a “home bartending” trend that has gained momentum in China since the pandemic is gradually expanding vermouth’s consumption occasions and sales channels. According to a survey released by youth36kr, a lifestyle-focused spirits media platform targeting young consumers, more than 70% of respondents said they prefer drinking at home. Separate data from industry research platform Hangye Baogao Zhiku show that more than 60% of young respondents are willing to make cocktails themselves, with younger consumers increasingly becoming a new generation of home bartenders. This shift has created new opportunities for vermouth.

On lifestyle-oriented social media platform Xiaohongshu with monthly active users of 300 million, searching for “vermouth” yields numerous cocktail tutorials featuring the product. On JD.com, product pages for brands such as Martini and Dolin also consistently emphasise cocktail mixing as the primary usage scenario.

Vermouth has also begun to gain visibility on instant retail platforms, which have expanded rapidly in China in recent years and primarily cater to at-home drinking demand.

Tariff policy adds to momentum

Policy developments have also played a role in shaping market expectations. Over the past two years, China has applied relatively favourable import tariff arrangements to vermouth. Under the Tariff Adjustment Plan for 2026 released by the State Council’s Customs Tariff Commission, import tariffs will be reduced for 935 product categories from Jan. 1, 2026. For small-packaged vermouth and similar products, the provisional tariff rate will be set at 30%, significantly lower than the most-favoured-nation rate of 65%.

In practice, vermouth imports have not been subject to the MFN rate for several years. Prior to 2025, the provisional tariff rate for this category was as low as 15%. The rate was raised to 30% in 2025, and the newly announced 2026 tariff plan effectively extends that same provisional level.

Although tariff rates have increased from earlier lows, they remain preferential. Industry observers note that this policy environment may be encouraging some importers to move earlier and increase inventories, contributing to the category’s relatively active performance at the import level.