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Wine in China 2009: A Market Analysis
Access Asia Ltd, Aug 2009, Pages: 148
This report covers the market for alcoholic wine in the People’s Republic of China. The report covers the red, white and blended grape and sparkling wines sectors. There is also some coverage of fruit wines (normally referred to as ‘berry wines’ in China) in the report. This report does not include yellow rice wine, or Shaoxing wine, which are covered in Access Asia’s ‘Spirits in China’ report.
This recently updated report includes:
- An overview of China’s total food market with sales statistics up to interim 2009;
- The total value and volume of wine consumption, including consumption channel breakdowns and by type of wine, up to interim 2009;
- The total value and volume of wine retail sales, including by sector, up to interim 2009;
- Leading manufacturer market shares based on revenues to 2008;
- Volume & value forecast the wine market in China up to 2014;
- The retail wine market background and current issues;
- Marketing & distribution;
- SWOT analysis
- Key manufacturer profiles
- Key contacts & trade events;
- Overview of China’s demographics and macroeconomics.
China claims over 160,000 acres of vinyards nationwide, but much is in remote areas, such as those in Tibet near Kazakhstan, where Silk Road traders brought seeds centuries ago. There is also a small native grape (Vitus thunbergii) that grows wild north of Shanghai. And Russian visitors brought plantings of Muscat and Ratsiteli to China in the early twentieth century.
Although having been started at the beginning of the 20th century, the wine industry in China has only recently begun to develop into a significant market. Chinese consumers have tended to stick to what they know, being beer and grain spirits – drinks that offer a higher alcohol level per unit than wine.
However, wines have attained consumer acceptance, not least due to Chinese politburo member Li Peng, who decreed that state banquets should be lubricated with wine instead of spirits in 1996. The influence of western eating and drinking habits have been key in this, as have rising average incomes in China. Indeed, wine is now becoming the fashionable drink for the wealthy younger generations in China’s cities, and the “badge” drink of China’s wealthiest élite.
The value of the market has more than doubled over the last seven years, and has become much more sophisticated. Not only are there more foreign wine imports available in restaurants and in the shops, but the number, variety and quality of domestic wines has also increased. This has served the market by providing local consumers with a greater array of cheaper products to try.
However, the domestic market has moved on, and domestic wines are now reaching a level of quality that they can compete on price with imported wines, and even look to developing an export market. However, the domestic market is where most Chinese wineries are looking to develop their sales. With about 600 million young Chinese, all exploring new types of alcoholic drinks, the potential market for sales of wine in the future is great.
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