While the annual growth of the global wine industry is less than 1%, the annual growth of Chinese wine industry exceeds 10%. Obviously China is an emerging wine market with high growth potentials and high profit margin. It is estimated that the demand for wine in China in 2010 will amount to 966,000 tons (0.966 billion litres). If we calculate it according to the 10% of annual growth of the last 4 years on average, then the output of Chinese wine in 2010 will amount to 630,000 tons (0.63 billion litres). Accordingly, there will be a market gap of 336,000 tons (0.336 billion litres). Now let’s look into the seven hot issues in the development of Chinese wine industry in 2005.

1. There is hope implementing wine grades system.

At present, Chinese wineries enlarge wine consumption mainly by advertisement, promotion and other market modes, and the wine grade system is opposed or given the cold shoulder because it affects the vested interests of some Chinese large-scale wineries. Fortunately, it has already been the trend of the times to carry on the wine grade system, and substantive progress will be made in 2005.

2. Building estates is catching on like fire throughout the country.

The greatest focus in Chinese wine in 2005 will be the “Estate Movement”. And the urgent matter facing Chinese wineries is to make middle or high grade wines. During these years, a great number of “wine estates” have been built up successively, which imitates the production modes of foreign wineries. Moreover, this trend will become stronger and stronger, which will exert positive and far-reaching impacts on the wine production patterns in China.

3. It is inevitable that imported wines will change the market pattern.

Chinese wine industry has fell behind the western countries for a long term. In recent years, lots of foreign wines have entered Chinese market, which will change the patter of Chinese wine market inevitably. It could be predicted that Chinese wine brands will become more and more centralized, and a new round of wine competition is around the corner.

4. “Characteristics” will become a sharp weapon in the technique competition of winemakers.

Wine characteristics have a close relationship with the qualities of wine grapes, while the qualities of wine grapes have a close relationship with the varieties, planting and cultivating modes. At present, Chinese winemakers are able to make only a few wine products with excellent characteristic. Furthermore, “Characteristics” is not only the sharp weapon in the technique competition of winemakers, but also the key factor of the next round of wine competition. 

5. The raw material of wine will influences the future and destiny of winemakers.

At present, many Chinese wineries could not make fine wine because of the limitations of the qualities of wine grapes. In reality, proper site selection, grape variety selection and evolving proper climate vineyard management practices are essential to successful viticulture. So the viticulturists, especially the Chinese viticulturists must develop their vineyard management techniques.

 6. Mutual compensation with respective advantages could sharpen the competitiveness of the whole wine industry.

Only the whole wine industry develops prosperously, can each winery develops prosperously. It is a matter of course that Chinese wine need to compete with foreign wine, but it is more important for them to cooperate with each other and endeavor to set up the market order system and maintain it, and eventually realize the objective of mutual progress and prosperity.

 7. The popularization of wine culture is an innovative marketing means.

Chinese wineries’ primary task in wine consumption culture now is to help consumers get in the habit of drinking wine. The winemakers shall strengthen the propaganda of wine knowledge by advertisement, promotion and other market activities so that the public access to the abundant intention of the wines, and finally enlarge wine consuming market. This year, winemakers will pay attention to the advertising propaganda as usual, but at the same time, they will value the propaganda of wine culture highly.