Vermouth and other flavoured wine market in Asia

Earlier Report Observations

The market for vermouth and other flavoured wine in China began the period at a high volume of 109 thousand liters in 2018, supported by expectations of market growth, investments from large and foreign players, and a consumer preference for red wine due to its perceived health benefits. E-commerce and livestreaming sales channels also emerged as durable shifts in distribution. The market then contracted over the next three years, falling to 91 thousand liters by 2021. A temporary recovery to 99 thousand liters occurred in 2022, but volume dropped sharply to 83 thousand liters in 2023 as post-pandemic economic conditions led consumers to become more cautious in their spending.

Throughout the period, the market structure evolved with the entry and sustained investment of major companies such as Rothschild and Moët Hennessy, which focused on domestic production in regions like Ningxia, recognized as a 'golden zone' for grape cultivation. Consumer preferences gradually shifted towards organic, natural, and innovative products, including canned wines, flavoured wines, and alcohol-free options, driving segment growth. This was accompanied by the development of wine tourism and experiential marketing initiatives.

By 2024, the regulatory environment included mandatory Chinese labeling requirements specifying content, net quantity, and shelf life, alongside national food safety laws governing additives. The return of Australia as a top wine exporter to China after diplomatic reconciliation reshaped import dynamics, while provincial policies promoted wineries and themed hotels to boost wine tourism. Young consumers' focus on health and rational drinking continued to drive innovation in low-alcohol and alcohol-free beverages.

Production vermouth and other flavoured wine in Asia

In kind, 2017-2020, K l

Top producers of vermouth and other flavoured wine, 2017-2020

World map of production of vermouth and other flavoured wine, 2017-2020

Production of vermouth and other flavoured wines in Asia fell for the second year in a row. In 2020, output reached 84 639 thousand litres, marking a 7.9% decrease from the previous year. Looking at the period from 2017 to 2020, production dropped by 8.9%, which translates to an average annual decline of 3.1%. The highest production level was recorded in 2018 at 94 582 thousand litres, with the largest year-on-year increase of 1.8% also occurring that year.

Annual dynamics of production in Asia in kind, 2017-2020, K l

In value, 2017-2020, M $ US

In 2020, the value of vermouth and other flavoured wine production in Asia stood at 321.3 million US dollars, down 12.4% compared to 2019. Over the 2017-2020 period, production value decreased by 2.2%, with a compound annual growth rate of 0.7%. The peak value was reached in 2019 at 366.8 million US dollars, which also saw the largest increase of 12.9%.

Annual dynamics of production in Asia in value, 2017-2020, M $ US

Exports vermouth and other flavoured wine from Asia

Exports in kind, K l

Asia's exports of vermouth and other flavoured wines by volume declined for the second consecutive year. In 2020, export volume was 1 154 thousand litres, a significant 15.8% drop from 2019. The highest export volume was recorded in 2018 at 1 531 thousand litres, with the largest increase of 30.9% also occurring that year.

Annual dynamics of product's exports from Asia in kind, 2017-2020, K l

From 2017 to 2020, the export structure by volume remained highly fragmented. The Netherlands accounted for 10.9% of exports, the United States for 3.0%, and the Democratic Republic of the Congo for 2.7%. Together, these three countries represented just 16.6% of total flows, with no single nation holding a dominant share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Asia in kind, 2017-2020

Exports in value, K $ US

Following two years of growth, Asia's exports of vermouth and other flavoured wines by value declined. In 2020, exports totalled 4 381 thousand US dollars, a 19.9% decrease from the previous year. However, over the 2017-2020 period, export value increased by 5.9%, equivalent to an average annual growth rate of 1.9%. The peak value was recorded in 2019 at 5 470 thousand US dollars, while the largest increase of 27.1% occurred in 2018.

Annual dynamics of product's exports from Asia in value, 2017-2020, K $ US

Between 2017 and 2020, exports by value were not heavily concentrated. The Netherlands accounted for 14.0% of exports, Spain for 3.7%, and Italy for 3.3%. Combined, these three countries captured only 21.0% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Asia in value, 2017-2020

Imports vermouth and other flavoured wine to Asia

Imports in kind, K l

In 2020, Asia's imports of vermouth and other flavoured wines by volume reached 14 170 thousand litres, a 2.6% increase from the previous year. Over the 2017-2020 period, import volume decreased by 7.9%, averaging an annual decline of 2.7%. The lowest volume was recorded in 2019 at 13 813 thousand litres, with the largest drop of 14.6% that year. The highest volume was in 2018 at 16 182 thousand litres, which also saw the largest increase of 5.2%.

Annual dynamics of product's imports to Asia in kind, 2017-2020, K l

From 2017 to 2020, Italy, Spain, and Germany consistently led the import structure by volume. Italy accounted for 27.4% of imports, Spain for 26.7%, and Germany for 9.4%. Together, these three countries represented 63.5% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Asia in kind, 2017-2020

Imports in value, K $ US

Asia's imports of vermouth and other flavoured wines by value fell for the second year in a row. In 2020, imports totalled 33 783 thousand US dollars, down 4.2% from the previous year. Over the 2017-2020 period, import value decreased by 7.0%, with an average annual decline of 2.4%. The peak value was recorded in 2018 at 39 746 thousand US dollars, which also saw the largest increase of 9.5%. The largest decline of 11.3% occurred in 2019.

Annual dynamics of product's imports to Asia in value, 2017-2020, K $ US

Between 2017 and 2020, Italy, Spain, and France were the main sources of imports by value. Italy accounted for 32.8% of imports, Spain for 23.3%, and France for 10.4%. Together, these three countries absorbed 66.5% of total imports, making them the primary suppliers to Asia.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Asia in value, 2017-2020