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The global wine sector faced significant challenges in 2024, marked by declining vineyard areas, historically low production, reduced consumption, and shifting trade dynamics. China, a key player in the industry, exhibited notable trends across multiple categories. 

1. Vineyard Surface Area 

- Global Context: The world vineyard area contracted by 0.6% to 7.1 million hectares (mha), the fourth consecutive annual decline. 

- China: 

  - Ranked third globally in vineyard size at 753,000 hectares (kha), down 0.4% from 2023. 

  - Stabilized after rapid expansion from 2000–2015 (300 kha to 770 kha). 

  - Contrasts with India’s growth (+4.5% annually since 2019) and Türkiye’s decline (-20% over a decade). 

2. Wine Production 

- Global Context: Production fell to 225.8 million hectoliters (mhl), the lowest in 60 years (-4.8% YoY), driven by extreme weather and market pressures. 

- China: 

  - Production plummeted to 2.6 mhl (-17% YoY; -53.4% below the 5-year average). 

  - Reflects structural challenges: declining domestic demand, climate impacts, and economic adjustments. 

  - Remained Asia’s largest producer but contributed only 1.2% to global output. 

3. Wine Consumption 

- Global Context**: Consumption dropped to 214.2 mhl (-3.3% YoY), the lowest since 1961, with mature markets and inflationary pressures driving declines. 

- China: 

  - Consumption fell 19.3% YoY** to 5.5 mhl**, continuing a downward trend since 2018 (-2 mhl annually). 

  - Key driver of global consumption decline, attributed to economic uncertainty, shifting consumer preferences, and reduced hospitality sector activity post-pandemic. 

  - Contrasts with resilient markets like Portugal (+0.5% YoY) and South Africa (-2.8% YoY). 

4. International Trade 

- Global Context: Export volume stagnated at 99.8 mhl, while value reached €35.9 billion, sustained by premiumization and high prices (€3.60/liter). 

- China: 

  - Imports rebounded sharply: Volume rose 13.7% YoY to 2.8 mhl, and value surged 37.6% to €1.5 billion, ending a six-year decline. 

  - Bottled wine dominated imports (90% of value), with demand driven by premium segments despite weak domestic production. 

  - Exports: Minimal presence in global export rankings, underscoring China’s role as a net importer. 

Key Takeaways for China

1. Structural Shifts: Declining vineyard area and production signal long-term challenges in domestic wine competitiveness. 

2. Demand Dynamics: Plummeting consumption reflects economic pressures and generational shifts away from wine. 

3.Trade Resilience: Surging imports highlight sustained demand for premium foreign wines, even as local industry struggles. 

4. Global Impact: China’s downturn significantly influenced global trends, contributing to reduced consumption and trade realignments. 

Conclusion: China’s wine sector remains pivotal yet paradoxical—its shrinking production and consumption contrast with rebounding imports, emphasizing its reliance on global markets. Addressing climate, economic, and consumer behavior challenges will be critical for future stability.