New research from IWSR shows young consumers are transforming the drinks market in China, ditching formality for casual social occasions and embracing white spirits and wines.
Previously, the engine driving China’s alcohol market was been banqueting and business entertainment, with baijiu and premium red wines the big winners. But according to IWSR business occasion dining has largely disappeared, with the new growth areas being white spirits, RTDs and white wine.
“After another difficult year in 2025, alcohol consumption in China is migrating away from obligation and gifting, and towards personal enjoyment, casual social occasions and value,” says Shirley Zhu, IWSR China Research Director. “This shift is reshaping who buys, what they buy, where they buy it and how much they are willing to spend.
“Younger legal drinking age consumers are embracing casual drinking, and they remain largely absent from high-end wine and most premium brown spirits. Meanwhile, older drinkers are being more selective and cautious as business occasions have yet to return. Home consumption has started to grow across spirits and wine, alongside the expansion of smaller formats, on-demand delivery (and solo or small-group drinking.”
Young consumers are drinking in cocktail bars, fusion restaurants and venues with live music. There’s also been a rise in at-home consumption, fuelling convenience store sales of RTDs. According to Zhu popular orders include cold beer, white spirits with mixers and ice, or a bottle of wine or whisky.
According to IWSR data, China’s growing cocktail culture saw gin volumes rose by +20% during 2025, and there were double-digit gains for vodka and rum too, albeit off relatively small bases.
Still wine continues to struggle in China, with volumes dropping by another -19% in 2025, according to IWSR data, driven by an identical decline for red wine.
White wine, which was down by -14% last year, now has a small but growing (9%) share of the market. Meanwhile, Champagne volumes fell by -15% in 2025, but non-Champagne sparkling wine edged up +1%.
Read the full report here.
Strengthening Australian visibility & demand
Treasury Wine Estates is among the winemakers moving to capitalise on growing interest in white wine, with CEO Sam Fischer recently identifying emerging demand for luxury whites as a growth engine for the company.
“We’ve been up in China and nearly every distributor spoke to us about what’s happening with white wine there,” Fischer said. “So just amplifying what we do in white wine through the established portfolio that we’ve got within Penfolds is a huge opportunity.”
TWE Greater China Managing Director Jack Wu agreed that “everyone is talking about white [wine] from Penfolds”.
“If you think about a white play, at business lunches some are preferring lighter wine, so they want Penfolds white instead of a heavy red. But maybe at a dinner, they will prefer the red. This is how we see the different kind of demand coming up.”
Wine Australia is also helping Australian wine reconnect with buyers, expand its reach and compete more effectively in market.
At Vinexpo Asia in Hong Kong, the Australian Wine pavilion displayed a strong national presence, with 60 winery and regional exhibitors showcasing around 600 wines from established and emerging regions including Margaret River, Tasmania, Heathcote and Beechworth. The event reinforced Vinexpo’s position as a key platform for wine trade in the region, bringing together over 14,000 trade professionals from 76 markets.
Extending this reach in-market, the Australian Wine Roadshow China 2026 was delivered across Beijing, Nanjing and Changsha, engaging more than 1,200 trade and media attendees. The program featured over 500 wines from 80+ brands, representing more than 40 regions through tastings, masterclasses and immersive food and wine experiences, including collaborations with Tourism Australia and Meat & Livestock Australia.
Together, these platforms highlighted the breadth of Australia’s regional and varietal offering and wines aligned with evolving market demand. From sustainably produced wines to lighter, fresher styles and wines designed for versatility and food pairing, the sector’s diversity was on full display.
In China, integrating wine into food, travel and lifestyle experiences further strengthened this positioning, helping trade and consumers connect Australian wine with contemporary dining and cultural occasions.
“Insights into evolving consumer preferences are shaping how Australian wine shows up in market. From the varieties, regions and styles to how we connect wine with food and lifestyle occasions,” said Sarah Roberts, Regional Manager – Asia Pacific at Wine Australia.
“At scale, these activations are about creating meaningful connections – between exporters and trade, and between Australian wine and the moments that matter to consumers.”