NEWS
CHINESE BOUTIQUE BRANDY BOOMS ON ANTI-DUMPING DUTIES
Xinhua News Agency
6-1-2026
Source: Unsplash
China’s domestic brandy market is witnessing a surge in boutique offerings, just months after anti-dumping duties on EU imports took effect, reshaping the country’s growing appetite for the amber spirit.
In a landmark ruling last July, China’s Ministry of Commerce (MOC) imposed five-year anti-dumping duties ranging from 27.7 percent to 34.9 percent on EU-origin brandy, citing findings that dumped imports posed a "substantial threat of damage" to domestic producers.
The tariffs, which came into force on 5 July, 2025, have already altered trade dynamics: EU brandy imports plummeted 60.11 percent in volume and 75.34 percent in value during the first five months of 2025 compared to the previous year, with France—long the top source—seeing imports drop 61.55 percent in volume .
Domestic wineries have seized the opportunity to fill the gap with locally crafted alternatives.
Ningxia-based Huang Kou Winery launched its 66.6-proof Marselan-based brandy late last year, blending cognac-style double distillation with grapes from the Helan Mountain East Foot region—China’s premium wine-producing hub. The spirit, aged 12 months in oak barrels and infused with dried fruit notes that echo the sauce aroma of iconic baijiu, sold out its first batch within weeks.
"The tariff policy has created space for domestic brands to showcase our unique strengths," said Zhang Xueyan, founder of Huang Kou Winery. "Our brandy bridges Western craftsmanship with Eastern tastes—warm, approachable, and rooted in local terroir—making it perfect for both daily dining and gifting." The winery is now preparing a second batch ahead of the 2026 Spring Festival, a peak season for alcohol sales in China .
The trend extends beyond niche producers. Established players like Changyu and Dynasty are ramping up premium brandy production, while industry data forecasts China’s overall brandy market will grow at an 11.4 percent annual rate through 2030, reaching RMB1.3 trillion yuan (USD180 billion) . High-end products (VSOP and above) are leading the expansion with a 12 percent yearly growth rate, outpacing the industry average .
"Chinese consumers are increasingly seeking quality spirits with cultural resonance," noted Li Wei, a beverage industry analyst at China Insights Consultancy. "Domestic brandy leverages familiar flavour profiles—like the subtle 酱香 (sauce aroma) from baijiu—and local ingredients, which gives it an edge over imported options now facing higher costs."
EU producers have responded by submitting price undertakings to MOC, with eligible imports exempt from tariffs . However, the policy shift has already tilted the market balance: domestic brands’ share of China’s brandy sector has climbed from 18 percent in 2020 to 27 percent in 2024, and is expected to rise further as new products hit shelves .
For consumers, the trend means more choice: while EU brandies remain available in premium channels, the rise of homegrown boutique offerings is democratising brandy access. "I used to associate brandy with French imports, but this Chinese version pairs better with our spicy Sichuan dishes," said Wang Yu, a Shanghai-based food enthusiast. "It’s smoother and more familiar in flavor."
As the tariffs enter their second half-year, industry watchers anticipate continued innovation—from fruit-based brandies to smartly aged expressions—as domestic producers compete to capture a market projected to account for 17.9 percent of global brandy demand by 2030.
For China’s spirits sector, the policy-driven shift is not just about replacing imports, but crafting a distinctively local brandy identity.
(the writer can be contacted at: info@thewinechronicle.com)
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