Summary of Key Points
The wine industry continued to experience significant adjustments in the first half of 2026: import volumes declined, but average prices rose. Most domestic listed wine companies reported losses (with some experiencing increased losses), and business was sluggish for retailers. However, there were also positive signs in the market—white wines became popular among younger consumers, imports from countries like Germany and New Zealand increased, and the concentration of leading brands grew. Nevertheless, the overall adjustment process is far from over, and market recovery remains weak.
I. Industry Overview: Declining Imports but Rising Prices, with Most Domestic Companies in Losses
From January to June this year, wine imports totaled approximately 101 million liters, a year-on-year decrease of 10.98%, although the import value increased by 0.83% to an average price of $7.07 per liter (up 13.26%). The reason for this paradox is that lower-end imported wines (such as ordinary European table wines) were less sellable, dragging down the overall volume, while the proportion of mid-to-high-end wines increased, driving up the average price.
The situation for domestic listed wine companies was even worse: Weilong Co., Ltd. suffered losses ranging from over 10 million to over 15 million yuan (compared to a loss of 2.4 million yuan last year); ST Tongpu lost between 23 million and 35 million yuan (also more than last year); *ST Mogao fared slightly better with losses of 23 million to 31.5 million yuan, similar to last year. Only *ST Niya reported a profit of 7.5 million to 10.9 million yuan, mainly due to government subsidies and non-recurring income from asset sales, rather than wine sales itself. Companies all stated that the industry is in a downturn, with reduced revenue from wine sales, and the loss-making situation has not improved.
II. Difficulties for Retailers: Fewer Business Events, Weak Wine Sales
Tianjin-based retailer Wang Wei noted that business continued to decline in the first half of the year. The Spring Festival season should have been a peak time for sales, but wine sales were mediocre, and the off-season was even worse. The main issue is the decrease in business events, which directly reduced the demand for wine in dining scenarios. Reporters found that like Wang Wei, many retailers only saw modest sales of beer, with no improvement in either wine or liquor sales.
III. New Trends in Imported Wines: White Wines Gain Popularity
There are new developments in the imported wine market: imports of wines in bottles under 2 liters decreased by 14.8%, but average prices rose by 19.4% (again due to the decline in lower-end wines). Among source countries, traditional markets like France and Italy saw double-digit declines in imports, while imports from Germany, New Zealand, and Australia increased significantly.
Why? White wines are becoming more popular among younger consumers! Yang Zhengjian, dean of the WBO Wine Business School, explained that many wines from Germany and New Zealand are white wines, which align with this trend. Additionally, supermarkets like Sam's Club and Hema purchase directly from abroad, driving down prices and making white wines more affordable to a wider audience.
IV. The Challenging Positioning of Wine: Neither High-Nor Low-End, Recovery Takes Time
Retailers generally feel that wine has an awkward positioning in the market: on one hand, there is less demand for high-end wines due to fewer business events; on the other hand, as a daily drink with moderate alcohol content, it does not have the widespread appeal of beer or fruit wines. This positioning issue is hindering market recovery and will take time to resolve.
V. Actions by Leading Companies: Fuyi Suspends Orders, High Inventory Pressure?
Fuyi Group, a major distributor of BIN407 wine, recently announced that it would temporarily stop accepting new orders for this product. Suspending shipments to stabilize prices is a common strategy for companies, but it also indicates high inventory levels and intense price competition. Industry insiders suggest that the rise in average import prices and potential improvement in demand remain uncertain and need further observation.
Overall, the wine industry is still in a period of adjustment. Although there are positive developments such as the popularity of white wines, true recovery requires addressing positioning issues and fostering daily consumption habits, which will take considerable time.