China's Wine Market Shrinks Dramatically Since 2017 Due to Changing Consumer Tastes and Economic Pressures

• China's wine market has shrunk dramatically since 2017, with annual imports down two-thirds • Increased competition from other alcoholic drinks and loss of wine's sophistication halo hurting demand • High-end brands like Penfold's expected to do well, but market remains price sensitive post-pandemic • Australia's tariff-free exports will regain market share, but face oversupply and shrunken consumer demand • Growth potential exists given low per capita consumption, but market confounds expectations of continued expansion