Every time I meet a winery, I am asked the same question: “How is the Chinese market?” It sounds like a reasonable question. But honestly, I’ve always believed that it’s actually the wrong one to ask.

The problem is not the question itself, but what it assumes.

We often talk about China as if it were one single market. But in reality, it isn’t. China is not one market. Just consider this: China is the third largest country in the world, with multiple, very different markets — much like Canada, where Ontario, Quebec, and British Columbia each have their own distinct wine dynamics. China’s wine market is a combination of many different cities, each with its own pace, structure, and completely different consumers.

Shanghai is an excellent example. Per capita wine consumption is around eight liters per year, while the national average is still below 1 liter. That gap alone already tells you something: Shanghai is a relatively mature market. The market today may feel slower than before, but at the same time, it’s becoming more refined. It’s no longer about volume. It’s increasingly about quality. What matters is not whether the market is “growing” or “slowing,” but how it is evolving.

If you look at consumers, the shift becomes even clearer. In Shanghai, the core wine consumers are typically between 30 and 49 years old, and many only start to engage seriously with wine around the age of 28 to 30. They are usually well-educated, urban and have some level of international exposure. They don’t necessarily drink a lot,but they choose carefully, they compare, and they are willing to learn. You also see a growing number of professional wine bars in Shanghai, with a wide range of by-the-glass options. This is actually very important. It allows consumers to explore gradually, to try different styles and to understand wine step by step, rather than making one single decision. At the same time, wine pairing is becoming more and more relevant. People are starting to think about what works with what, and how wine fits into the dining experience. These changes are not just about how people drink. They are gradually building something deeper:

• brand equity
• an understanding of terroir
• and an emotional connection with wine

We are also seeing a clear shift in style. In the past, the preference was often for rich, powerful, full-bodied wines. Today, the trend is moving toward: lighter, more elegant, easier-drinking styles. But all of this is Shanghai. If you go to Chengdu, Shenzhen or other cities you will find very different dynamics. Each city has its own identity — its own underlying character. And they cannot be approached in the same way. This is often where many misunderstand the market. This is why I increasingly feel that talking about “the Chinese market” as a whole is actually misleading.

The real question is not: “How is China?” But rather: “Which city are we talking about?” Understanding China today means understanding these differences. Growth doesn’t happen evenly. Opportunities are not found in national averages, but in specific cities, and specific consumers. For wineries, this implies something important: China is no longer a market that can be approached with a single strategy. It requires a much more thoughtful approach to positioning, based on the differences between cities —something that often benefits from a deeper, local understanding.

In conclusion, China is not one market. It is many,  and each needs to be understood on its own terms. Short of that, any attempt at entering the market is, almost surely, destined to fail, or at the very elast, fail to meet with long-term success.

About our work

The Ian D’Agata Wine Culture consulting company, of which I am the CEO and CFO, focuses on the Chinese wine market from a B2B, structural and long-term perspective, working closely with wineries, importers and trade partners. Our work centers on market positioning, portfolio structuring, and helping producers better align their wines with specific cities, consumption contexts, and evolving consumer behavior in China. This is always approached city by city. For any further questions or more information on this and other market-related subjects, or queries on how to specifically enter the Chinese market, please contact : contact@iandagatawine.com