Wine exports from the European Union (EU) to key Asian markets faced significant challenges in 2024, with major players such as mainland China, Hong Kong, Japan, and South Korea registering notable declines.
This trend, outlined in Eurostat’s recent data, paints a complex picture of shifting dynamics in Asian wine markets. However, Thailand emerged as a rare growth story, buoyed by recent tax reforms that spurred wine imports.
Mainland China: Double-Digit Decline
From January to October 2024, EU wine exports to mainland China totaled EUR 456 million, marking a 12.48% decline compared to the same period in 2023. Despite China’s lifting of COVID-19 restrictions in late 2022, the aftermath of the pandemic continues to influence consumer behavior and market recovery.
Notably, EU wine exports to China during this period amounted to only 64.74% of the EUR 705 million recorded in the same time-frame in 2019, underscoring the sluggish recovery.
France maintained its position as the largest EU wine exporter to China, with EUR 300 million in exports, representing 65.88% of the total. However, this marked a 13.57% year-on-year decline. Other significant EU wine producers also experienced downturns:
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Italy: EUR 72.91 million (-8.53%)
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Spain: EUR 43.96 million (-15.70%)
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Portugal: EUR 5.42 million (-14.44%)
Germany stood out as an exception, with wine exports to China rising by 15.94% to EUR 22.07 million. This growth is attributed to China’s increasing interest in white wines, particularly Rieslings, a category in which Germany excels.
Established Asian Markets: Challenges Persist
The decline in EU wine exports extended beyond mainland China, affecting mature markets like Hong Kong, Taiwan, South Korea, and Japan.
Hong Kong and Taiwan
Hong Kong, a traditionally robust wine hub, saw exports plummet to EUR 258 million, a steep 22.67% decline. Taiwan’s imports also fell, with exports totaling EUR 106 million, a 12.78% drop. Both markets, known for their sophisticated wine consumption patterns, faced economic headwinds and shifts in consumer preferences.
South Korea
South Korea, which experienced a pandemic-driven surge in wine demand, continued its downward trajectory in 2024. EU wine exports from January to October totaled EUR 198 million, a sharp 20.31% decrease year-on-year. The waning enthusiasm for imported wine reflects broader economic uncertainties and changing consumption trends.
Japan
As the largest Asian market for EU wines, Japan reported an 11.74% decline in imports, amounting to EUR 745 million. Despite this drop, Japan remains a cornerstone of EU wine exports in Asia due to its consistent demand for high-quality wines.
Thailand: A Rare Growth Market
Amid the widespread declines, Thailand emerged as a bright spot. EU wine exports to Thailand reached EUR 67.71 million from January to October 2024, a modest 2.38% increase year-on-year.
This growth can be attributed to Thailand’s 2024 tax reforms, which eliminated a 54% import tax on wine and unified the consumption tax system. These changes created a more favorable environment for wine importers, encouraging them to expand their imports.
While Thailand’s wine market remains relatively small compared to giants like Japan, mainland China, and Hong Kong, its consistent growth positions it as a promising emerging market in the region.
Outlook for EU Wine Exports in Asia
The challenges facing EU wine exporters in Asia underscore the need for adaptive strategies in response to shifting market conditions. While established markets grapple with economic headwinds and evolving consumer preferences, emerging markets like Thailand offer new opportunities for growth. Moving forward, EU producers and exporters must navigate these complexities, leveraging localized insights and fostering partnerships to sustain their presence in Asia’s dynamic wine landscape.
Source: Vino-Joy