Younger consumers in the west are increasingly indifferent to wine's charms, but China is singing a different song.
What equals the adult population of Europe, has a penchant for supporting local brands and might be sipping tea-infused Chardonnay at this very moment? Generation Z, a quickly emerging, increasingly powerful and quite complicated wine force in China.
Gen Z roughly covers those born from 1995 through 2010 and, per state media, totals some 260 million citizens, the vast majority of them now working age. They grew up with social media and e-commerce, and spend the most time online, estimates varying widely from three hours to over six hours per day.
They also grew up as only children in a China that only knew strong economic growth but now faces uncertainty, including high youth unemployment. Even so, they are a major spending force, often splurging on life's pleasures and delaying saving for big-ticket items like apartments, using their online skills to research products and find good value.
All while frustrated researchers try to pigeonhole them: open-minded; patriotic; health-conscious; socially aware. They aren't easy to pin down.
"I have many unresolved questions regarding the drinking habits of Gen Z," says Wang Shenghan aka Lady Penguin, a key opinion leader (KOL) with millions of followers. What isn't in question is Gen Zers importance to the wine scene. In fact, they are transforming it from a focus on status to one on pleasure.
Gen Z 101
"This recent generation is very relaxed about wine," says professor Ma Huiqin, who has seen tastes change for two decades via her introductory wine course at China Agricultural University in Beijing. With 500 students per year, Ma has raised a glass with 10,000-plus attendees hailing from all disciplines and across the nation.
"They want to try every wine, no matter Chinese or imported, from big wineries or small ones, from orange wines to screw caps."
Paired with this inquisitiveness is independence.
"They have a lot of confidence," she says. "They decide what wines are good compared to years past when students tried to learn what is good."
Many see Gen Z as more adventurous and less focused on prestige, exploring wine far past the big oaky reds associated with China. Andrea Leng runs Chanson winery in Ningxia and cites Gen Z's unique experience.
"We are a generation that witnessed major shifts on all fronts of society in a very short period, so we are more accustomed to and welcoming of new products and concepts," says Leng. "Just within the alcohol industry, we saw the emergence of RTD (ready-to-drink), including zero-sugar low-alcohol drinks, canned wines, tea-infused alcohols, and so on."
She points to light-bodied, white and natural wines as strong niches.
Wang, the KOL, has seen this expanding choice, too, selling well-known Bordeaux, Burgundy and other labels alongside quirkier options.
"We have a substantial percentage of young and female consumers for our brands, perhaps because of the more novel forms of wine products we are providing, like bag in box, ready-to-drink mulled wine and the wine punch series called 'juice wines'."
Online and offline
Gen Z grew up in step with the rise of e-commerce, a game-changer for alcohol sales. Take Douyin, China's equiivalent to TikTok: drink sales in 2022 totaled USD 2.8bn, and kept skyrocketing from there, states Huaxia Wine Journal. Sales from January to August 2023 rose 98.4 percent versus 2022, with 79 percent of that for alcoholic drinks.
Paired with such sales is ubiquitous drinks content as KOLs, brands and peers vie for attention, including on platforms like Bili Bili and Little Red Book with strong youth followings. This is where Greek wine importer Liakos Konstantinos focuses.
"This generation is being influenced by KOLs across all Chinese platforms, always searching before buying and comparing prices," says Konstantinos, adding that white, slightly sweet and sparkling wines are gaining on bigger reds.
Social media provides Gen Z with the dual benefits of learning about wine and living vicariously.
"[This] is a way to understand the outside world, because they probably haven't travelled abroad yet. They enjoy seeing vineyards, terroirs and winemakers in videos,” he says, noting the casual nature of this education versus the WSET approach.
Terry Xu, an educator known for his consumer-friendly tasting notes, also sees less focus on authority.
"[Gen Z] grew up with social media. They don't follow the traditional wine critics or wine professionals. They like to create their own communities and they like to follow people speaking their language."
For Leng, these factors prove one thing: "We need to create products and brands that keeps satisfying the curiosity of Gen Z."
Her latest hit? Soft, berry-driven, cement tank-aged Pinot Noir – featuring capybaras on the labels.
Gen Zers also merge online and offline socializing. Social media allows them to explore a massive incredible range of interests that turn into real-life meetings with like-minded souls, whether it concerns pets, camping, anime, sports or travel. This includes also flocking to food and drink festivals and to the growing number of wines bars nationwide, found across the country, which seems counter-intuitive given falling overall consumption, but stresses the rise of pleasure seekers versus those of status.
"I think for us, wine is a social lubricant more than ever," says Leng. "With the opening of more bistros and with people into drinking, we want to find wines that look nice and interesting and that are more niche rather than big-name famous wines."
Leng notes that packaging, stories and personal connection are all important.
"We spend more time and effort learning about brand stories and winemaking processes rather than fixating on price and well-known wineries."
Others have also witnessed the special energy and outgoing nature of Gen Z.
"[Gen Zers] are very friendly, maybe even too friendly," jokes Xu. "They brought guitars and sang at a tasting that I organized."
Ma even finds it in the classroom. In the past, students only tasted the wines she served.
"Now, I see students buying and bringing wines to the class to share with others," she says. Some are graduates from past semesters, returning not for course credit but to try more wines.
The national wave
Another factor is guochao, or "national wave", a growing pride among young consumers in home-grown products, from the high-speed rail to tech brands to traditional foods, drinks and fashion.
This could not come at a better time for China's wine producers, for whom sales lag their leaps in quality. And while the modern industry was built on oaky Cabernet-driven wine, producers are now exploring more grape varieties and wine styles, from Marselan, Malbec and Muscat to orange, pet-nat and natural wines, just the thing to attract Gen Z.
It also means opportunities for importers who can appeal to those desires. Konstantinos is optimistic, particularly given Greece's diverse white grape varieties.
"We are preparing a big five-year promotional plan for this generation, which includes pairing Chinese cuisine from different cities with local and international varieties we cultivate in Greece," he says.
Konstantinos, who calls 2023 his company's best year, considers himself a witness to a transformation.
"I believe this generation will change all of the wine market in China because their consumption is real. Because their consumption is based on choice."
Source: Wine-Searcher