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Wine industry analysis

Wine industry analysis

In 2017, the Chinese wine market displayed a trend of import wine consumption exceeding local wine – the rate of growth over the year reaching almost 20%. 

Over the past three years, the main sources of Chinese import wine has remained stable. However, whilst the market share of French and Chilean wine slowly decreased, Australian and Spanish experienced a big growth in market share. 

In the Chinese wine market, the most profitable regions are East China and South China respectively. The total volume of import wine in Shanghai is more than Guangdong. However, the total $ amount of import wine from Guangdong is $910 million dollars, which is higher than Shanghai’s $736 million dollars. This shows that the quality requirement of wine is highly regarded in Guangdong.

Between Taobao, Tianmao and Jingdong exists almost the entirety of online wine supply market in China. Interestingly, Taobao and Tianmao are subsidiaries of Alibaba, meaning that Alibaba occupies the largest online market share in China with regards to wine. 

In 2017, the total volume of imported wine is 746 million liters, an increase of 16.88% compared to that in 2016.

The total amount of import wine is $2789 million dollars, an increase of 17.96% compared to that in 2016.

Bottled wine shares the most of the market in both the import volume and import $ amount.

44% of the consumers buy wine with a price between 100 and 300 Yuan ($20-$60 AUD) and almost 80% of the consumers choose the wine with price under 500 Yuan (approx. 100 AUD). 

As shown in the graph below, the average consumption of wine per person has steadily increased in recent years.

Furthermore 72% of Chinese wine consumers choose to drink their wine in Western restaurants, whilst 18% choose to drink wine whilst at home.

The Chinese wine market is still in a period of vigorous development. At present, there is a big gap between Chinese per capita consumption of red wine and the level of developed countries. This shows that China has a huge potential for expansion in the wine market if the current trend continues. With the development of China’s economy, people’s demand for red wine will also continue to increase. The potential of market demand will bring tremendous business opportunities in the Chinese wine industry. As one of the most renowned wine producers, Australian wine is in a prime position to capitalize on these trends. 

Australian wine has huge potential and advantage over its competitors in the Chinese import wine market. So why is it that the average Australian wine producer has not yet entered into Chinese market? The method and channels entering into Chinese market have previously been problematic, with cultural differences, the language barrier, a lack of connections and complicated regulations deterring trade. Having said that, Ausmate holds all of the solutions to overcome these problems. 

Ausmate, via our exclusive Alibaba service package and well-established trading network in Guangdong, gives all the Australian wine producers who have aspirations to enter into the Chinese market the perfect opportunity and platform to do so. Alibaba’s B2B platform can provide a high-quality service platform for both Australia companies and Chinese buyers so that both parties can more easily conduct procurement and achieve faster trade cooperation. The program, going under the name of Trustpass, is an engagement program that strives to provide authenticated trading opportunities for both buyers and sellers on Alibaba’s vast B2B platform. To find out more of how easy and profitable it could be for your wine to enter the Chinese market get in contact with one of our sales team today!

 

Contact details: 

Phone: +61 2 6239 2296 

Website:https://www.ausmategroup.com/

Email: enquiry@ausmategroup.com

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