If I am pasting from SSMS into Excel and I want an entry to appear on two lines within Excel, Char(10) doesn't work for me either — with or without Turn on Word Wrap.
I activate Turn on Word Wrap for the whole sheet and add a couple of spaces where I want the concatenation to happen. This works because most of my strings are of similar length and columns in Excel have been set to slightly greater than this length.
It's not at all elegant but it works for me.