In recent years, not only has China passed France as the biggest consumer of wine, it has also shown that its rate of growth will continue to expand for years to come as the tastes of Chinese wine drinkers matures.
Wine Intelligence estimates that there are approximately 20 million imported wine consumers in China, and that number is expected to grow to 80 million by 2020. This is attributed to the news that the country’s middle class will continue to expand as China transforms into a more consumption-based economy.
According to Burgundy producer Nicolas Potel, “There is a growing interest throughout Asia as palates develop and curiosity about wine deepens.” He went on to explain that this growth follows a “normal” pattern that was laid down by the Japanese and US markets 20 and 30 years ago.
According to the CWSA, wine-exporting countries are taking notice:
France
China’s unquenchable thirst for quality wine is significantly boosting sales for top French labels. Well-known brands such as Rémy Cointreau, Domaines Lapalu and Domaine du Grollet make up just a portion of the $660 billion in imported French wine that China has been eagerly purchased in recent years.
These wineries are just a few of the many that have embarked into the hugely rewarding market made up of China’s increasingly wine-thirsty consumers. French wines are entering into this new frontier with confidence, knowing the booming market grew by 30% each year between 2009 and 2012, and these numbers are projected to expand on an ongoing basis. As China’s pallet for white wines also develops, it is understandable that buyers steadily continue to look to France, alongside other quality European offerings, epecially those from Italy, Spain and Portugal.
Italy
As China has grown to be the largest consumer of red wine in the industry, Italian wines have become increasingly popular throughout the region. According to Lamberto Gancia, President of Federvini (Italian Association of Industrial Producers, Exporters, and Importers of Wine), China is an “incredibly interesting market“. His comments reflect Federvini’s findings that since 2010, Italian wine exports to China have maintained a trend of increasing by more than 60% each year.
Portugal
As Portugal has taken its place as the seventh largest wine exporter to China – which makes China the fifth biggest buyer of Portuguese wines – Portuguese winemakers are now calling China and Hong Kong the “most promising” markets in the world.
Statistics from the government-run export marketing organization Wines of Portugal show that the amount of Portuguese wine exported to China rose by 62% over the course of 2013. According to the organization’s Marketing Director Valle Nuno, “The demands of premium wine in China are increasing. Chinese consumers are now learning to enjoy higher levels of wine, which is a great opportunity for Portuguese wines.”
Australia
In 2013, Australian winemakers exported 15% of their wine valueto the thirsty region. These numbers position Australia as the second biggest wine exporter to China.
According to NAB Agribusiness general manager Khan Horne, “In the past five to six years there’s essentially been a ‘perfect storm’ for the Australian industry. Chinese demand is driving growth in the sales of Australian wines at the premium end of the price spectrum, or above $10 a litre.”
New Zealand
Between 2003 and 2013, the value of New Zealand exports to China increased from $200,000 to more than $25 million, making China one of the leading importers of wine from New Zealand. China regards New Zealand as a trusted producer of agriculture, which allows it to command high prices.
According to Fongyee Walker, founder of Dragon Phoenix Wine Consulting, “New Zealand wines do well in China for a number of reasons – many Chinese have been there to study or on holiday and have very positive views of New Zealand and thus a good view of New Zealand wine.”
Chile
In recent years, Chilean wine producers have enjoyed an outstanding level of success in the growing Chinese wine market, and it has been announced that last year alone Chile exported 1.7 million gallons of wine to China. China has long been Chile’s largest trading partner, primarily in terms of raw materials, and as the Chinese middle class has grown, so has their income and their thirst for quality South American wines.
According to Alejandro Palacios of the government funded export promoter ProChile, “Asia is a market that we want and is where we have to stay. China ranks as the sixth destination of shipments in volume, which have reached 2.4 million cases between April 2012 and March 2013.
