French wine still dominates China market

China has become a hot destination for global players in the wine industry with demand growing in excess of 20% annually for the past five years to around 1, 480.6 mn litres, according to Rabobank Wine Quarterly. 

Among imported wines, Australian and US wines are increasingly being replaced by French wines as imported wine market growth has tirpled to 146.3 mn litres or 10% of the overall table wine market, Rabobank Wine Quarterly said. 

French wine has now occupied a commanding position, having formed deep distribution channel partnerships and strong consumer associations with their products owing to their pioneering efforts since the early 1980s.With a landed value of around USD 655.7 million, the Chinese market for imported bottled wines is also a relatively high-value market dominated by red wine and the HORECA channel. 

Chinese wine companies, some of which have strong ties to notable French companies, have themselves reinforced perceptions in trade and consumer circles that French wine is the epitome of wine. While Chinese wines by and large populate the bottom end of the market, wine styles, packaging and branding all closely follow the Bordeaux example in an attempt to convey an idea of quality. 

With the general level of consumer appreciation of wine at an elementary level, distributors play a critical ‘gatekeeper’ role in influencing what consumers purchase and how they perceive value. With wine consumption still predominantly based around customary entertaining and gift-giving occasions, Chinese consumers are primarily interested in making a ‘safe’ purchase that can confidently convey a suitable level of prestige, status and respect. More often than not, this means French. Spain, Australia, USA are major exporters of wine to China but French wine occupies a prime position in China, the report said.