Summary of Key Points
In the first half of 2026, the Chinese wine industry, which had been on a downward trend for several years, finally showed signs of differentiation: companies like Zhangyu and ST Tongpu achieved revenue growth through innovative products that feature sweetness, bubbles, and tailored experiences, while others such as Weilong continued to suffer losses. The industry is trying to make wine more accessible to the general public by lowering the barriers to consumption (e.g., adding carbonation, retaining sweetness, or blending with fruit juices). However, there is disagreement within the industry about the reliability of this "new wine-drinking" approach—some see the potential for better integration with everyday scenarios, while others worry that the lack of standards may lead to a mix of high-quality and low-quality products.
I. Industry Differentiation: Some Companies Are Recovering, While Others Are Still Struggling
The wine industry has been declining for the past few years, but the first half of 2026 brought mixed results:
- Zhangyu: Revenue stopped declining and increased, with total sales reaching 1.57 billion yuan (a 6.9% year-on-year increase), and wine-related sales growing by 3% to 1.048 billion yuan. Its innovative product, "Changtailao" (a semi-sweet white wine), sold 100 million units within 10 months and often topped e-commerce charts. However, increased marketing expenses led to a 24.3% decrease in net profit to 141 million yuan.
- ST Tongpu: Wine revenue more than doubled, rising by 120.4% to 80.56 million yuan, mainly due to online live broadcasts selling sweet sparkling wines. The "Changding" series, priced below 40 yuan, sold particularly well, with a 244.4% increase in sales, appealing to younger consumers. The higher-priced "Pinwei" series only saw a 24.4% increase.
- Weilong: The company is still in the red, with revenue down by 12.1% to 164 million yuan, despite developing new products like fortified wines and flavored brandies that have not yet shown significant success.
In short, companies that are adapting to change are starting to recover, while those that remain stagnant are struggling.
II. Wine Becoming Sweeter and More Trendy
To make wine more affordable and palatable to the general public, companies are making several adjustments:
- Changing Taste: Adding sweetness, carbonation, or fruit juices to reduce the acidity and make the wine more approachable.
- Tailoring to Occasions: Creating products for popular dining scenarios like barbecues and hot pots (e.g., Zhangyu's "Mingdaoli" barbecue wine), as well as smaller bottle sizes and more youthful packaging, and partnering with popular celebrities (e.g., Yu Shi) to attract younger consumers.
- Adjusting Prices: Launching products priced below 40 yuan to make wine more accessible.
The goal of these changes is to break the perception of wine as an exclusive and intimidating beverage.
III. Why the Changes?
Zhangyu's general manager, Sun Jian, pointed out two main reasons for the industry's stagnation:
1. Changing Demand: Wine consumption was once driven by official and business events, but these have declined, and consumer spending power has been affected by the economy.
2. Changing Consumers: Younger consumers are the new market force, but they dislike the traditional acidity and ceremonial nature of wine.
Companies need to break away from these traditional patterns and attract a broader audience with products that are more appealing.
IV. Is the New Approach Reliable?
There are two opposing views within the industry:
- Optimists: Wine expert Wang Dehui believes that young consumers, who enjoy activities like barbecues and hot pots, have a large potential for wine consumption. Well-targeted products can be successful.
- Pessimists: Yin Kai, founder of Chao Yin Hui, argues that low-priced new beverages are similar to those already available in Europe and America, which are designed for casual drinkers, not for widespread adoption. The lack of industry standards could lead to poor-quality products that damage the wine industry's reputation.
In the short term, these changes may drive growth, but their long-term sustainability depends on the industry's ability to maintain quality and establish clear guidelines.
V. Future Trends
Future developments will likely see more tailored products, but with strict regulations:
- Zhangyu plans to launch de-alcoholized or low-alcohol wines, herbal wines, and low-proof trendy beverages.
- Weilong is also developing fortified wines and flavored brandies to follow the trend.
For wine to truly become a mainstream beverage, the industry must address two issues:
1. Product Quality: Manufacturers must not compromise on quality to meet lower prices; standards are necessary.
2. Scene Integration: Products must truly fit into everyday life, such as family gatherings and外卖.
In summary, the wine industry has found a direction for improvement, but whether it can succeed depends on the balance between innovation and regulation.
(The translation maintains the structure and tone of the original Chinese text, using clear and easy-to-understand language suitable for financial and business journalism.)