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China's wine imports slowing
www.hktdc.com by 2009-06-06   

China has always been the biggest market of wine imports globally. However, the situation is changing. With the rise of China's domestic wine production, China's import of wine is on a downward turn.

After world renowned brands Hennessy, Remy Martin and Martell, Courvoisier's Napoleon wine, one the four top-class brands of wine in the world has announced its formal entry into the Chinese market. Not long ago, Hennessy announced the debut of its Iridescence, a world classic type X.O. on the China market, alleging that China was its biggest consumption market for the first time.

Although various brands of imported wine products have poured into China's market, the import growth has slowed down. According to statistics from the customs, China's import of packed wine of less than two litres slowed down its growth last year, and the import of wine in packaging of more than two litres has stayed at the same level for three successive years. After hefty rises of about 100% in the 2006-2007 period, China's import of wine was 6,389,439 cases of packages of less than two litres (nine litres per case), rising 36% year on year.

The increase of raw materials for wine production has weakened China's dependence on import. With the expansion of planting areas for grapes, the raw materials for wine production have increased gradually. However, with increasing expansion of China's wine market, there will be more and more foreign brands of wine entering the China market, indicating more fierce competition for China's wine- making industry in the coming years. 

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--------------------------------------------------------------- 2 comments
[Alberto]  • Imports growing by 36% last year and here talking of slowdown?? I think the increase is still huge given the fact that imports doubled in 2007. Once China Customs releases 2009 first half figures then we will see whether China's imports are really slowing down or not. But in 2008 they grew significantly, don't understand why people just focusing on % growth (like 8% GDP) instead of other more relevant absolute figures! 2009-06-11
[john]  • A function of the economic recession and the growing sales of local Chinese wine brands have eat into the wine import. Many on-trade outlets for wine have closed down especially in coastal cities in the Guangzhou and Zhejiang areas due to the recession - leading to a decline in wine consumption in China. The fashionably rich who buy 1st growth wine more as a show-off than because they are connoisseurs are now more careful with their spending as many have grown bankrupts or have seen their stock holding withered on the Shanghai Stock Exchange. 2009-06-08
 
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