How The Chinese Market is Viewed in the US

1) China’s wine market has seen a 270% growth in only five years.

2)  By 2015, China will be the second largest purchaser of luxury goods.

3) One California retailer has set up a wholly-owned import company in Shanghai.

4) One large brand portfolio has conducted trials to determine the “taste” the Chinese want from their wine.

5) Two of the country’s largest banking firms have created a futures program for Chinese wine.

6) Vinexpo says China’s consumption will grow by 13% per year for the next five years.

7) WSET has set up a Chinese language website to offer a Mandarin course for their certifications.
Global Wine & Spirits is all over China right now, assessing the market from logistics, to buyer trends, you name it. They estimate that by 2010 China will experience 36% growth in consumption as opposed to 4.8% for the rest of the world. They also point out that currently wine only accounts for 5% of total alcohol sales in China.

These are some of the figures that the US is receiving in regards to the Chinese wine market.

With impressive growth potential that has been reported all over the world, the burgeoning wine market in China is set to break records for a market that hasn’t seen a new global buyer in a long time.  So the question then is: how is the market viewed by the American wine market.

From a winery standpoint everyone is happy about the abolishment of the hefty importation tax.  Many wineries, from the larger conglomerates like Gallo down to the small, independent wineries that cannot afford full page ads in magazines, are actively looking for representation in China; they see the potential for buyers, for drinkers, for loyal customers as a very attractive incentive worth the investment.

For retailers in the US, they see such a large market as competition for allocated brands, especially the harder to find, higher-priced wines of Bordeaux and Burgundy, and even some prized wines from within the US borders.

Conversely, many in the US are eager to see what kind of wine is being produced in China, with reports of many brands being developed, many acres of vineyards under development with assistance from people who have been on the production side of things for decades. 

Of course the auction houses are already pleased, and will continue to focus a great portion of their business in China.  With results far exceeding expectations, houses like Acker, Merrall & Condit and Bonhams are just tasting the first few bites of the Chinese wine market.  Rest assured they will continue to supply a hungry market like China with many lots of collectible and highly sought after wines from all over the planet.
So with the exception of the added competition for allocated wines among retailers on either side of the Pacific, the US sees China as a great opportunity for spreading the word about the US wine industry, and more importantly, an opportunity for long-term relationships between Chinese wine buyers and US wine producers.