As we head further into 2019 industry experts are releasing detailed reports on the buoyant Chinese wine market which predict a very bright future ahead for wine brands and producers seeking to export to the country.
A Diversifying Consumer Base
Demand for imported wine and spirits remains strong in China with the country now the fifth largest consumer of wine in the world. Chinese wine consumers aren’t restricted to the well-heeled middle classes, though, as more and more young people become aware of the health benefits of drinking wine compared with China’s powerful national drink baijiu which tends to have a very high alcohol content.
Imported Wine Up 80% On 2013
Although China does produce vast quantity of wine domestically, the market for imported wines is booming. Making wine in China tends to be costly and quality isn’t yet on the same level as other, more established winemaking countries, so demand for wine from abroad is high.
According to a recent report by Research And Markets, in 2018 China imported 729.68 million litres of wine. This represents an impressive 80% increase by volume since 2013. In terms of value wine imports in 2018 were worth USD 3.91 billion which represented a 6.5% increase on 2017. These figures demonstrate the consistent growth of the Chinese wine import market and the significant opportunities for ambitious producers and wine brands seeking a place for their products in the market.
France vs Australia
In terms of country of origin France continues to perform well and constituted $1 billion of China’s total wine imports during 2018. Interestingly, though, French wine imports were down almost 9% on the previous year. The second strongest performer was Australia with $700 million worth of wine imports recorded in 2018, followed by Chile with approximately $340 million of imports which represented a 4.5% increase on the previous year.
A Bright Future Ahead
According to the Research And Markets report the future looks bright for the Chinese wine import market as Chinese consumers continue to learn more about wine and the market matures.
For the moment the market is dominated by medium and entry-level products with an average price per litre of 6 USD, but the premium end of the market is growing significantly. Over the past year Chinese consumers spent an impressive $16.5 billion on premium wines, and that figure is predicted to reach $19.5 billion by 2022. This indicates that there are plenty of opportunities for producers at all stages of the spectrum to flourish and prosper on the Chinese wine market.