How Did Vinexpo Asia 2024 Measure Up? Insights from Buyers and Exhibitors - Vino Joy News (2024)

What are the priorities and preferences of Chinese buyers today? Did Vinexpo Asia Hong Kong live up to its expectation? We find out here in the report.

Following a six-year hiatus, Vinexpo Asia returned to Hong Kong from May 27-30, 2024, with anticipation building well before the doors opened at the Hong Kong Convention and Exhibition Centre.

Last year in Singapore, the buzz around the upcoming Hong Kong event was palpable, setting high expectations for its return. With the stage set for a significant industry reunion, Vino Joy spent three days talking to wineries and wine buyers to understand the current dynamics of the market and to see if the event lived up to its anticipated promise. What are the priorities and preferences of Chinese buyers today? This report brings you firsthand accounts from exhibitors and attendees.

Australia Back in Focus

Official statistics reveal that this Vinexpo Asia edition attracted 1,032 producers from 35 countries and 14,203 visitors from 60 countries.

More than 30% of exhibitors were from France, with Australia also presenting 85 wineries. France and Australia notably dominated the exhibition space, whereas Italy, New Zealand, and Spain had slightly smaller spaces.

China was undoubtedly the buzzword at this edition, with Vinexpo data indicating that the majority of attendees—75%—came from mainland China, Hong Kong, Macau, and Taiwan. Throughout the three days, the predominance of Mandarin-speaking attendees was evident, underscoring Hong Kong’s role as a gateway to the Chinese market.

On the opening day, the Australian pavilion was abuzz with activites, reflecting renewed interest in Australian wines following China’s removal of punitive tariffs. Penfolds, arguably the most known imported wine brand in China, drew dense crowds to its booth. Meanwhile, the Italian and Spanish sections experienced a quieter start. In contrast, New Zealand’s pavilion drew a significant number of visitors, a testament to the enduring popularity of its white wines in China. This was notably in a year when overall wine imports from major wine-producing nations to China generally declined, yet New Zealand’s imports bucked the trend, increasing by 19.43% in volume and 18.29% in value.

The French pavilion, warming up more gradually, eventually rivalled the Australian in terms of visitor traffic. The UGCB tasting area, packed with wine lovers, highlighted the lasting allure of France’s classified estates though whether the buyers are placing orders is another question.

Exhibitors: Mixed Successes and Challenges

Australian exhibitors in particular who talked to us provided overwhelmingly positive feedback. Penfolds attracted significant attention from Chinese buyers on the first day, resulting in a bustling booth. Millon Wines from South Australia also reported a substantial turnout, with its general manager for the Chinese subsidiary in Hainan noting the urgent need to hire additional Mandarin-speaking staff to accommodate the influx of Chinese importers.

Originally targeting more clients from South Asia, Japan, and Korea, the unexpected surge of Chinese mainland merchants necessitated quick adjustments. Speaking to Vino Joy, Milly Huang, the General Manager in Hainan, remarked on the swift shift in focus necessitated by the high demand: “I was asked to come to the fair yesterday to help manage the overwhelming interest.”

“Mainland Chinese merchants are genuinely enthusiastic about Australian wines. Many importers have lost previous connections, and some Chinese who owned vineyards in Australia have sold their assets, thus there is a real and present demand for reconnecting and buying,” explained Huang.

Australia ranked as China’s biggest wine supplier in value and volume before China officially slapped hefty tariffs on the wines. Customs data from 2019 shows China imported 140 million liters of Australian wine, valued at US$ 860 million. The popularity of Australian wines has attracted many wine importers, many of whom preferred the bold flavors of Australian Shiraz and Cabernet.

However, many consumers’ taste preferences have evolved. Huang explained, “Now, buyers are looking for high-value-for-money products. While older, experienced buyers still prefer the robust styles of South Australian wines, younger consumers are venturing into new wine styles.”

Besides Australia, other wine-producing nations reported varying reception at the fair. Mina Fung, a wine importer specializing in Italian wines from Guangzhou, noted, “Some wineries heard about the economic downturn in China, which would affect buyers’ purchasing mood. They’ve tempered their expectations accordingly.”

Meanwhile, the China sales manager of Babich Wines from New Zealand, Cai Lei, observed a decrease in the number of Chinese buyers, attributing it to both reduced attendance and smaller exhibition spaces, indicative of a more cautious approach by exhibitors.

Explaining on the diminished presence of Chinese buyers, Cai said, “Last year, New Zealand wines saw a rise in sales in China, but with more importers competing in a limited market, the challenge of moving inventory has made everyone more cautious this year.”

Dan Irving, international sales manager of a U.S. wine company WX Brands, commented on the shift in their primary Asian markets from China to South Korea and the Philippines, primarily due to the trade war’s high tariffs and China’s economic slowdown.

However, a French winery’s representative shared a more positive outlook, noting a slow but noticeable recovery in the Chinese market.

Le Dome by JCP Maltus‘ export sales manager, Xiao Qi, shared: “This time at the exhibition, we met with many serious wine buyers, and I felt that the buyers were quite confident, definitely better than during the Spring Festival.”

Explaining on the improved mood, he said: “Last year, a client from Shenzhen placed an order for a container in June-July. When we met in November, he mentioned the market was weak and temporarily froze the order. Given the slow sales before this Spring Festival, he was hesitant to move ahead with the order. However, meeting him at Vinexpo, he felt the situation had improved enough to confirm the order.”

Mainland Chinese Buyers: Caution Reigns

This year, Chinese wine buyers turned out in significant numbers, boosting attendance at the Vinexpo Asia Hong Kong edition by over 40%. But beyond the impressive turnout, what impressions did the fair leave on wine merchants, and what objectives did they have?

Mina Fung provided some insights into her visit: “One of the reasons for coming this time was to prepare for the peak season at the end of the year, with the demand being for high value-for-money products. More importantly, it was to continue building relationships with wineries and to explore some new suppliers. After all, some domestic importers have since consolidated or closed down in the past two years, so I now have the opportunity to pick up some wines that were once ‘spoken for’.”

However, Mina was not in a rush to place orders, citing the need for more rounds of negotiations and winery visits before committing to new wines. “Cooperation is like marriage; you can’t just meet once and make a deal,” she explained.

Wu Yonglei, General Manager of FOND Wine in Xiamen, one of the country’s top 50 wine importers, also shared his cautious approach and detailed his trip’s objectives: “First, the purpose of this trip is to meet and communicate with old partners to discuss the next steps in cooperation. Second, to see what new trends there are in the market. Third, to communicate with some wineries from regions I have not previously dealt with, such as Burgundy and New Zealand, but I hope to first get to know the outstanding brands. As for orders, I need to understand them deeply to see if they meet our requirements.”

The rise of Gen Z consumption, personal consumption, and wine bistros in the Chinese market have led to increased popularity of lighter-style wines, a point that shared by Mina Fung and Wu Yonglei of Fond Wine.

In an effort to capture the new trend, Jassie Dong, General Manager of Shanghai Pranwines, a specialist in Australian wines, outlined his company’s strategic response: “In the past few years, besides the traditional distributor channels, Pranwines has also expanded into catering and e-commerce channels. So we will continue to focus on the Barossa region, but also pay close attention to Western Australia, Tasmania, Yarra Valley, and Mornington Peninsula. In terms of varieties, we will focus on mainstream varieties from mainstream regions, such as Chardonnay, Pinot Noir, and sparkling wines, which are very suitable for our wine bistro channel customers.”

Fang Yi, General Manager of Puyi Boutique Wines in China’s inland Changsha, was also among the Chinese wine buyers who attend this year’s Vinexpo Asia in Hong Kong. He highlighted the importance of making direct contact with wineries and producers, saying: “The purpose of this trip is to understand the upstream ecology, as I face end consumers with a large customer base, and I need to be aware of what products they might ask about. Secondly, to understand some regions and products I am interested in, whether there are importers in China, how many importers there are, and what the relationship with importers is like.”

Reflecting on his experience at Vinexpo Asia, Fang expressed satisfaction: “Compared to some wine exhibitions in mainland China, Vinexpo Asia introduced more fine wines, and the quality of the masterclasses was very high, but the activities did not overshadow the main purpose, which is more about helping people select wines and engage in business discussions, creating a nice atmosphere.”

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