The imposition of a 15% tariff on Italian wine by the U.S. President Donald Trump has created a profound ripple effect across the global wine market.
For Italy, the United States has long been the most valuable export destination—both in terms of volume and commercial importance. It remains an irreplaceable market, and no alternative can replicate its size and value overnight. However, the new tariff reality has prompted Italian producers to explore other destinations, with Asia-Pacific emerging as a potential frontier.
The Search for Alternatives
Asia is drawing increasing attention from Italian wineries. While traditionally less rooted in wine culture compared to Europe or North America, regions such as China and Japan are being closely watched, alongside the Pacific markets of Australia and New Zealand. These countries are both consumers and competitors, with New Zealand in particular ranking among the world’s largest exporters by volume and value.
Despite this, the potential for growth in Asia-Pacific is tempered by evolving consumption habits. According to a consumer survey conducted by CGA by NIQ and reported by Wine Titles, moderation in alcohol consumption is becoming a significant trend across the region.
The Moderation Movement
The survey highlights a clear cultural shift: three in ten consumers (31%) reported drinking less alcohol than a year ago, compared to just 15% who increased their consumption. The steepest declines were observed in the Philippines (42%), New Zealand (38%), and Australia (34%).
Health and well-being are the leading motivations for this decline. In China, 52% of respondents said they drink less to improve their health, while in Hong Kong the figure was 45%. Economic pressures are also playing a role, with 25% of respondents cutting back on alcohol purchases due to rising living costs.
Notably, moderation does not necessarily mean abstinence. Instead, consumers are shifting to occasional drinking. A third of respondents (31%) now reserve alcohol consumption for special occasions, particularly in South Korea (38%) and Japan (41%). Meanwhile, others continue drinking the same beverage categories but are reducing purchase frequency, with this behavior being most pronounced in New Zealand (33%).
The Rise of No- and Low-Alcohol Alternatives
The trend toward mindful drinking is creating opportunities for No-Lo (no- and low-alcohol) beverages. One-third (32%) of Asia-Pacific consumers say they have tried a No-Lo drink in bars or restaurants, with beer leading the category, followed by wine and spirits. China stands out, with 48% of respondents having experimented with low- or zero-alcohol beverages.
Challenges and Opportunities for Italian Wine
For Italian wine producers, these trends pose a double challenge. On the one hand, the U.S. tariff has created urgency to diversify into new export markets. On the other, the regions being considered—particularly Asia-Pacific—are experiencing cultural and economic shifts that may reduce traditional alcohol consumption.
James Phillips, head of the HoReCa segment at CGA by NIQ in Asia-Pacific, summed it up: “The shift towards mindful drinking isn’t a passing trend, but a cultural reset that’s redefining how, when, and why people drink. The question is whether this is the new normal.”
Producers, distributors, and hospitality operators must now adapt to this recalibration by offering products that align with health-conscious and cost-conscious lifestyles, without alienating established customers. Those who successfully embrace this balance—by innovating with lighter styles, sustainable practices, or even low-alcohol offerings—are likely to remain competitive and relevant in the coming years.
Source: WineNews