In China, the emergence of low- and no-alcohol wines and the growing visibility of natural wines are often interpreted as “new styles replacing traditional wine.” A more useful reading—particularly for wine producers—is that these shifts reflect a broader reconstruction of demand driven by changes in consumer logic, drinking occasions, and generational structure. The key is not the product itself, but who drinks, why they drink, and in what situations.

This article does not argue for the decline of traditional wine, but for a clearer understanding of how demand is being reorganised—and where long-term opportunities still lie.

From moderation to meaning—and back to tradition

At a macro level, China’s alcohol market is moving away from a purely volume-driven mindset toward one shaped by structure and value. Industry observations suggest that while overall consumption volumes are likely to remain relatively stable, future growth will depend on how demand is re-organized across occasions and price segments. Consumers may not drink more, but they are becoming more selective—choosing products that feel relevant to their lifestyle and values. This creates a realistic foundation for wine to reposition itself within a changing environment.

 Low/No-Alcohol: For Gen Z, More an “Entry Point” Than a Rejection of Tradition

For China’s Generation Z, wine has not yet become part of everyday life. It is less a case of “drinking less wine” and more that many consumers have not yet formed stable wine-drinking habits, with wine rarely being their default choice across most occasions.

In this context, low- and no-alcohol wines function primarily as a lower-barrier entry point. They allow younger consumers to participate in drinking occasions without the perceived risks associated with intoxication or social pressure. Their significance lies not in replacing traditional wine, but in opening new access routes—particularly in weekday settings, light social occasions, and situations where staying clear-headed is preferred.

More broadly, this shift reflects occasion-level competition rather than substitution within wine alone. Consumers increasingly decide which beverage best fits a specific moment, and wine must re-establish relevance across these changing contexts.

Natural Wine: Millennials Are Reshaping Demand, Not Leaving Wine

Unlike Gen Z, Millennials have not exited wine consumption; instead, they are reshaping what wine demand looks like. They continue to drink wine, but often more selectively. For this cohort, wine increasingly represents values and identity, rather than simply flavour profiles or appellations.

This is where natural, organic, and biodynamic wines gain traction. Concepts such as “minimal intervention,” “respect for nature,” and “environmentally friendly production” align closely with Millennials’ emphasis on sustainability, authenticity, and meaning. As a result, natural wine is not merely changing flavour preferences—it is shifting the standards by which wine is chosen. Millennials are more likely to respond to values-driven narratives than to technical detail accumulation or traditional promotional language.

However, there is a necessary clarification to be made on natural wine: minimal intervention does not mean a lack of standards. It is important to clarify that “natural wine” does not inherently imply poor control or unstable quality. At its core, it emphasizes minimal intervention, respect for natural processes, and environmentally considerate viticulture and winemaking, rather than the abandonment of hygiene, cellar discipline, or quality control. High-quality natural wines still depend on healthy fruit, clean cellar conditions, and careful attention to fermentation.

As the term gains wider visibility, the market has also seen products that package winemaking faults as “style.” Such interpretations risk misleading less experienced consumers into assuming that “impurity equals naturalness,” thereby blurring the true meaning of natural wine and potentially harming producers who pursue minimal intervention with high standards and clear terroir expression.

The Real Risk for Traditional Wine: Not “Tradition,” but “Weak Positioning”

New trends can place pressure on traditional wine, but this pressure is not evenly distributed. The most vulnerable segment tends to be entry-level and everyday wines lacking clear positioning and differentiation. In casual or informal occasions, brand loyalty is weak, and purchase decisions are often driven by convenience, price, or perceived occasion fit.

Structural change, however, does not imply universal pessimism. Sparkling wine offers a clear example of resilience: recent market observations indicate that sparkling wine demand in China has been driven primarily by younger consumers and leading coastal and first-tier consumption cities (such as Shanghai, Shenzhen, Guangzhou and Beijing, as well as new first-tier cities like Hangzhou and Xiamen). This suggests that when wine aligns with lighter social occasions and lifestyle-oriented consumption, demand can still grow.

How to Reactivate Demand: Bringing Traditional Wine into New Contexts

In China, reactivating demand for traditional wine does not mean pulling consumers back into old drinking patterns. Instead, it requires helping traditional wine enter the new occasions and the new language systems already shaping consumption.

First, low/no-alcohol and natural wines should be viewed as entry points rather than opponents. They can serve as an initial step into wine, while traditional wines guide consumers toward deeper understanding of terroir, expression, and differentiation.

Second, traditional wine needs a more contemporary posture—through lighter traditional styles, flexible formats, and a stronger emphasis on food pairing and moderation—to fit modern weekday and light-social occasions.

Finally, and most critically, wine needs translation. In China, many traditional wines are not “not good enough”; rather, their value has not yet been translated into narratives that younger consumers can understand and emotionally connect with. Once tradition is communicated as a credible, continuous cultural asset that fits modern life, it is not inherently rejected by new consumers.

Rethinking Tradition Through Structural Change

China’s current shift is best understood as a reordering of the demand ecosystem. Gen Z represents unrealized demand, requiring accessible entry points and relevant occasions. Millennials represent reshaped demand, redefining standards, values, and expectations.

In this context, the opportunity for traditional wine is not disappearing—it is being redefined. Traditional wines that can be consumed in new occasions, understood through new language, and positioned within evolving value frameworks are more likely to gain renewed momentum in this period of transition.

In this transition, tradition is not losing relevance—it is being asked to speak a new language.