The strength of the Chinese wine market continues to grow and is predicted to overtake France to become the world’s largest wine market by value by next year. Driving this expansion is the sustained growth in Chinese wine consumers who are expected to hit 70 million by 2020.
According to a recent IWSR-Vinexpo report, the top spot is claimed by the United States whose wine market has a value of $38.4 billion. Some way behind is the current runner up, France, at US$16.7 billion and China coming in third at US$16.5 billion. Predictions indicate that by 2022 China’s wine market will be worth some US$19.5 billion.
Rising Wine Imports
China’s wine imports are also predicted to continue rising significantly in the next couple of years. The country is currently the fourth biggest importer in the world and brings in 61 million cases each year. The value of Chinese wine imports is expected to jump by at least 8% over the next year.
At the moment France remains China’s largest source of wine imports, but this landscape is quickly changing as Australian producers gain ground thanks to the elimination of tariffs on Australian wine imported into China at the beginning of 2019.
Booming online wine market
One unique feature of the Chinese wine market is the dominant role played by e-commerce on a scale not witnessed in any other significant wine market in the world. China’s online alcohol market is currently worth US$6.1 billion and currently over 50% of Chinese consumers buy online either monthly or more often.
Wine makes up 60-70% of e-commerce alcohol sales and online sales in general are expected to grow 15% over the coming year, making this a very attractive proposition for foreign wine brands and producers.
Factors Driving This Boom
One key driver of China’s booming wine market are the growing numbers of young, well-educated consumers who are prolific users of e-commerce sites. These consumers are often female and perceive wine to be a healthier alternative to stronger traditional spirits. Despite the higher price tag, imported wines are often chosen as they are seen as more sophisticated than local offerings and allow consumers to signal to their peers their awareness of wine culture.
The Chinese wine market remains one of the most attractive in the world for wine brands and producers, but finding success in this fast-paced marketplace can seem daunting. The annual Chinese Wine & Spirits Awards offer a chance to put your products in front of 100 of China’s most influential buyers who judge the competition each year.
Winning an award at the CWSA is a mark of excellence for your product and the attractive medal stickers send a clear message to consumers that your wines and spirits have been approved by experts against a crowded field of competitors.
Standing out from this crowd of wine producers isn’t easy which is why it is essential for brands to create a targeted marketing approach. One way to showcase your wine to Chinese consumers and top buyers is by entering the China Wine & Spirits Awards Judged by 100 of China’s most influential BUYERS.