China’s wine market to a healthy import and sustainable growth

China's wine market to a healthy import and sustainable growth May 17 – China wine market occupies prominent position in the wine world. No matter what policy on the way, it has never made a huge influence on the quench peoples’ thirst for new tastes, especially imported wines enjoy good reputation in China market. For both reasons: personal tasting and widely held as a gift. Imported wines gain better status with quality and flavor among Chinese consumers.

China’s wine market toward healthier path

Along the Chinese government crackdown on corruption which had led to curbs on officials’ extravagant, taxpayer-funded banquets with expensive wines on the dinners table. In terms of wine consumption in China, it had an immediate adverse impact on wine importing to China. Diners who used to spend 2,000 yuan on a bottle of wine, were spending only 600 yuan. So, sales of high-end and expensive imported wines, which were common at lavish banquets, fell in terms of both volume and revenue. Traders lost a lot of corporate and government clients. This pushed wine traders to shift their focus to individual consumers.

In the last three years, Increasing number of Chinese consumers buy wines for their own consumption or to share with families and friends. Banquets are no longer the only occasion to enjoy wine and expand the wholesale volume. In addition, with the raising income of middle class, Chinese individuals consumption wines have broadened, tasting imported fine are attractive events, buying imported wine gain popularity among middle-class consumers, China’s wine market has steadily recovered, and it’s on the way to a healthy and sustainable growth. Hard evidence of this trend comes from wine consumption figures. In volume terms, sales of imported bottled wines in 2015 have rebounded to a three-year high of 395 million liters, up 37 percent year-on-year. Tianjin port in the first quarter of 2016, has checked 721 batches of wine imports with a total value of $ 25.79 million, a year-on-year increase of 73 percent, according to the Tianjin Entry-Exit Inspection and Quarantine Bureau.

China’s wine import has steadily growth

Imported wines from Europe shown a great growing potential at a wine and spirits exhibition this years. Especially, one of China key ports for imports exports, the Tianjin port sees growing wine imports, Statistics shows, foreign wine imports to China have grown sharply in Tianjin port in the first quarter of 2016, according to the Tianjin Entry-Exit Inspection and Quarantine Bureau. In the first three months of 2016, the bureau checked 721 batches of wine imports with a total value of $ 25.79 million, a year-on-year increase of 73 percent. Staff with the bureau said that great demand in the domestic market and reduced taxes have contributed to sharp import growth. The inspection watchdog is paying closer attention to brand names and strictly implementing follow-up supervision to make sure that the quality of the wine is good.

Import wine to China, among others, leading the pack of foreign imported wines in China are the French varieties, followed by those from Australia, Chile, South Africa and Argentina, which are fast grabbing market shares from popular brands. Chinese consumers are also buying more and more of relatively expensive wines imported from New Zealand. Varieties such as Blanc Sauvignon from Marlborough are gaining in popularity, despite their average price being among the highest in imported wines.

China’s wine importers on the way to direct supply consumers

China is nowadays the fifth wine consumer in the world, 7 percent of the total consumption and the fourth major importer in terms of value. Wine trade experts said this trend is natural as individual consumers prefer more diversified and differentiated products than corporate clients. China’s wine importers on the path to direct supply consumers. Wine traders encourage consumers to try as many wine varieties as possible through a wide range of events, education programs, and information-sharing through online and mobile channels.

Currently, the imported wine sector is witnessing a rapid growth due to the stimulation of the revised cross-border e-commerce regulations as well as the increasing number of overseas wine brands, who are eager to throw their hats in the nation, to lure a significant amount of consumers. Statistics from The International Organization of Vine and Wine shows that imported wines to China increased by 44 percent year-on-year, reaching 550 million litters, directly from 12 top wine producing countries, including France, Australia, Chile, Spain, Italy and the US, and directly imported millions of bottles of wine from more than 100 high-profile brands. Chinese middle class were the major driving force in the market. For the List of Chinese Major Importers/Distributors/Agents for Foreign Wine in China available upon request, please contact with DCCC, or email to: info@dccchina.org