Overview of China’s Wine Market
By 2009-2-15 9:55:36
Imported Wine as Status Symbol: As masses of rural Chinese migrate to the cities, and as the economy creates rapidly expanding middle and upper classes with increased access to higher end goods and at least some disposable income, the market for premium products of all types in China is experiencing rapid growth. As noted in an analysis from the United States Department of Agriculture (USDA), the Chinese wine market in particular reflects this dynamic3:
“China’s Market Continues to Surge: The volume of U.S. wine exports to China rose tri-fold over the last five years, ending at 50,000HL. Despite this, due to their late entry, U.S. winemakers have yet to gain a significant market share relative to their European counterparts, or relative to other latecomers such as Australia and Chile. In fact, the United States rose to fourth place by volume among the top wine importers to China, following Chile, the EU, and Australia. Due in part to low disposable incomes, mid-priced domestic wines still dominate the market, ranging from about $3 to $8 per liter. Imported wine is believed to be healthy and implies a certain social status and cultural sophistication. It is considered a fashionable alternative to traditional Chinese rice wines and alcohol.”
Wine Market Growth Will Continue: Following are excerpts from another USDA report, “Wine Market in North China”4, reiterating the explanation for the recent growth in wine sales, and projecting growth of nearly 30% from 2005 to 2010:
“Wine enjoys an ever-growing reputation as a sophisticated, high-end product that should be indulged in as part of a modern, healthy and affluent lifestyle. Even though per capita wine sales are still below the Asia Pacific regional average of 3.2 liters, sales by volume due to China’s nearly 1.31 billion citizens are quite high and are forecast to grow by 29.3 percent by 2010 .
“China’s Market Continues to Surge: The volume of U.S. wine exports to China rose tri-fold over the last five years, ending at 50,000HL. Despite this, due to their late entry, U.S. winemakers have yet to gain a significant market share relative to their European counterparts, or relative to other latecomers such as Australia and Chile. In fact, the United States rose to fourth place by volume among the top wine importers to China, following Chile, the EU, and Australia. Due in part to low disposable incomes, mid-priced domestic wines still dominate the market, ranging from about $3 to $8 per liter. Imported wine is believed to be healthy and implies a certain social status and cultural sophistication. It is considered a fashionable alternative to traditional Chinese rice wines and alcohol.”
Wine Market Growth Will Continue: Following are excerpts from another USDA report, “Wine Market in North China”4, reiterating the explanation for the recent growth in wine sales, and projecting growth of nearly 30% from 2005 to 2010:
“Wine enjoys an ever-growing reputation as a sophisticated, high-end product that should be indulged in as part of a modern, healthy and affluent lifestyle. Even though per capita wine sales are still below the Asia Pacific regional average of 3.2 liters, sales by volume due to China’s nearly 1.31 billion citizens are quite high and are forecast to grow by 29.3 percent by 2010 .
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