Asia is bubbling with opportunity for the champagne industry.
Coco Chanel famously said, “I only drink champagne on two occasions, when I’m in love and when I’m not.”
Since then, adoration for bubbly has only grown. In fact, global champagne trading has consistently increased 10% annually over the past few years, despite the pandemic, low grape supplies, and US trade tariffs.
However, there is one market that is just beginning to ripen — Asia. Driven by a growing affluent middle class with a love for luxury, the region is quickly becoming a hot spot for champagne lovers. And major houses have been investing heavily in the area over the past five years as a result.
For example, focusing on experiential marketing campaigns like masterclasses and tasting events, companies like Champagne Palmer & Co. have been able to increase their brand awareness and sales significantly over the past few years. The Rémy Cointreau Group’s champagne sales in 2020 and 2021 were up by double digits in China. To seize the opportunity, the company acquired the storied House of Telmont in 2020.
Overall, there has been a 50% increase in champagne volumes in 2021 — largely due to the increase in Asian consumption, according to the Bordeaux Index.
While Europe remains the largest consumer of wine, Asia isn’t far behind. The region now accounts for 11% of total global consumption, and China alone accounts for 7%.
So will Asia continue to be an effervescent market for champagne houses? Time will tell. But one thing is for certain, these companies are setting down roots and aren’t planning to leave any time soon. And to that I say, the more champagne to go around, the better. Cheers.
Danilo Diazgranados is an independent investor in the global food and wine, financial services, real estate, and the hospitality sectors.