China turns its back on French wines: Bordeaux Grand Cru imports in free fall

From Hong Kong comes another bitter blow for Bordeaux Grand Cru wines: exports to Greater China have hit rock bottom, plunging to €240 million in the twelve months ending July 2024. During a press conference in the Asian metropolis, Ronan Laborde, president of the Union des Grands Crus de Bordeaux (the pinnacle of Bordeaux wines, representing 132 prestigious estates), confirmed that this new decline marks yet another setback for a once-crucial market now in deep crisis.

Ronan Laborde, President of the Union des Grands Crus of Bordeaux

Collapse of exports to mainland China

Hong Kong remains the main market for Bordeaux Grand Cru in the region, with a value of €140 million, while mainland China has fallen to just €100 million, the lowest figure in the past decade. Compared to the €300 million recorded in the same period in 2023 – itself a historic low – the decline is striking. "Although the numbers have decreased, they are still substantial," Laborde stated, noting that Bordeaux Grand Cru wines represent between 67% and 75% of the value of high-end French wines imported into Greater China. However, economic recession and escalating geopolitical tensions appear to be taking an increasingly significant toll. The slowdown is not limited to China; globally, Grand Cru exports have declined 16% year-on-year, falling far short of the record peaks of 2021 and 2022 when they reached €1.4 billion.

Thailand and Dubai step up

China’s consumption slump is part of a broader contraction: among Bordeaux’s top 15 global markets, only Thailand, the United Arab Emirates, and Taiwan are showing growth. Thailand, in particular, is experiencing a golden moment thanks to the abolition of import tariffs and reduced wine excise duties, a move reminiscent of Hong Kong’s decision in 2008 that transformed the former British colony into a global hub for fine wine.

Dubai and Taiwan are also emerging as new destinations for high-end Bordeaux wines, albeit with volumes still modest compared to traditional markets. On the other hand, rising tensions between China and the European Union, exacerbated by disputes over electric vehicles and solar panels, cast a shadow over the future of Bordeaux exports to the region. Laborde acknowledged that "the geopolitical climate is unpredictable" but expressed confidence in the sector's resilience: "From Brexit to US tariffs, we are now seasoned in handling turbulence and ready to face any challenge." Despite the difficulties, the Union des Grands Crus de Bordeaux is exploring strategies to maintain a strong presence in China. "If barriers arise, we will find solutions to continue selling a significant amount of wine there," Laborde assured. It remains to be seen whether adaptability and accumulated experience will be enough to counter a trend that, for now, seems unstoppable.