The current development of Chinese wine market in 2020—Domatters

Posted by zaiwu 26/05/2020 0 Comment(s) Doing Business in China, Fun & lifestyle & Chinese culture,

“When drinking the wine of grapes which is held in the glass of jade that glow at night and listening to the Pi Pa songs,but we are summoned to fight.”Wine production has a long history in China. There are records of wine production in the Han and Tang Dynasties and even the Qing Dynasty. After the reform and opening up, especially since the development and popularity of wine in China in the 1990s, many foreign businessmen have gradually emerged in China. From the initial establishment of an imported wine trading company in China, to the establishment of a winery joint venture in China, to the opening of a wine chain store, etc., there are different development paths and management ways.

 

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Although China is the largest consumer of spirits in all the world,but Chinese wine market is also very dynamic.It's growing by more than 25 percent a year.In China, French wines have the best reputation.New world wine, led by Australia, has been gaining popularity in China in recent years.The Chinese wine market is dominated by red wines, but white wines are slowly catching on.Previously, the Chinese wine market was mainly price-oriented. Many people would think that the higher the price of wine, the better the quality. That's why Chateau Lafite Rothschild is so popular.But now the price is not the first, people pay more attention to the taste and brand.

 

According to data released by the National Bureau of Statistics of China, Chinese wine production reached 451,000 kiloliters in 2019, a decrease of 178,000 kiloliters compared with 2018, a cumulative decrease of 10.2%. As of January-February 2020, Chinese wine production reached 36,000 kiloliters, a cumulative decrease of 67.6%. In March 2020, the national wine production was 22,000 kiloliters, a year-on-year decrease of 31.3%. In April 2020, the national wine production was 33,000 kiloliters, a year-on-year increase of 26.9%.

 

 

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According to data from the General Administration of Customs of China, Chinese wine imports reached 662294 thousand liters (66.294 million liters) in 2019, a cumulative decrease of 9.2% year-on-year. Chinese wine imports amounted to 3536446 thousand US dollars (3.536 billion US dollars), a year-on-year decrease of 9.7%. As of January-February 2020, Chinese wine imports reached 82.6 million liters, a decrease of 36.165 million liters compared with the same period of the previous year, and a cumulative decrease of 30.4%. From January to February 2020, the average price of Chinese wine imports was US $ 52.52 thousand / 10,000 liters.

 

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Chinese wine consumption market has huge potential in 2020

 

Chinese current wine industry is still in the cultivation period. Judging from the consumption structure of domestic beverages, wine also accounts for only 1.5% of the total annual consumption of alcohol. The per capita consumption of wine in urban areas is 0.7 liters. There is a big gap with the consumption of more than 6 liters per capita in the world. The Chinese wine market has huge market potential. The rapid growth of Chinese economy and the increase in residents' income will make the wine industry prosperous in the future.

 

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After all, China is the fastest growing market for wine consumption in the world. In the past 10 years, the consumption of the world's traditional wine-consuming countries has basically maintained its original level. However, only the Chinese market has sprung up, and wine sales have continued to rise. This also makes the global wine manufacturers rush.

This year's epidemic has accelerated the industry's reshuffle. Enterprises with good products and strong brands will achieve greater development. Under the epidemic, Chinese domestic wine manufacturers are also seeking change. The global economic situation is not good, everyone can only find ways to recover some losses as much as possible. On the one hand, many companies slow down the pace of purchases, on the other hand, they must also develop new sales models, such as online sales, live sales, etc. For Chinese distributors and consumers to accept a new wine brand, you need to carry out fruitful marketing efforts.If you need any help, you can always contact domatter.com.

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