Wine Industry Impacted by Financial Crisis While Chinese Market Remains Optimistic

Since the beginning of global financial crisis last year, wine industry has also inflicted heavy loss. On the other hand, the journalist from China Wine News knows from 2009 Spring National Sugar and Wine Fair that in the crowed wine halls, there are wine enterprises from both old world and new world .

An authoritative market survey shows that the average growth rate of world top 10 wine enterprises is -4.6%, with the highest being -10%。 However, market in China is different and favorable. Survey shows that domestic wine output has grown by 23.8% and total industrial output value was nearly 20 billion yuan in 2008, which was the highest growth among beverage and liquors. Wine enterprises in China has benefited a lot from the huge consumption   From 2006 through, wine consumption in China has been growing rapidly with an annual growth rate of 13%.It is estimated that the consumption will reach 1.1 billion bottles in 2011, accounting for 40% of consumption in Asia.  Survey shows per capita wine consumption will double within 5 years, which will not be changed by the financial crisis. Although wine industry is experiencing a slowdown growth, it will not take a long time. Data from January to August in 2008 has dropped to some extent, but wine enterprises are still optimistic about wine market potential in China.

Global financial crisis has sped up foreign wine entering of China. Imported wine priced at 10 to 20 yuan is seen everywhere, so domestic wine enterprises are directly impacted by foreign wines. Up till now, more and more foreign wines are shifting to China. Italy and Australia etc rush to China to hold wine exhibitions one after another to further secure market share.