China Wine market is flourishing

While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four hold around 50% of market share.


Imported wine reached the height of its popularity in 1996 when it occupied half of the Chinese market. When China moved to restrict wine imports with quotas and high tariffs, domestically produced wine increased its dominance in low and medium end markets. The reduction in import tariffs in January 2004 has since sparked the increase in imported wine.


Chinese wine consumers are generally found in the economic growth regions - Beijing, Guangzhou, and Shanghai - because consumption of wine, especially imported wine, is closely related to consumer purchasing power. If the population of wine consumers was confined to just the economic growth regions, the consumption per capita would be around 2.7 litres compared to 0.3 litres for the total population.


94% of the wine consumed is red wine. This is often attributed to health benefits, the similarity between red wine tannins and those found in tea, and the fact that the colour red stands for happiness and celebration in Chinese symbolism. Tea is the number one beverage in China with around 50 billion litres consumed each year.


Better quality wine is largely limited to hotels and restaurants and drunk mostly by visitors. Specialty wine shops are now beginning to emerge in the growing coastal regions.


Bureaucracy can make access to the Chinese market difficult, but it should not be viewed as a major impediment to exporting. A sound knowledge of the target market and sensitivity to any cultural differences, along with preparation and patience, will provide exporters with a better idea of how to embark upon any export venture.