The total import of bottled wine to China reached an amount of 12.35 million liters in the first six months of the year 2016, according to Tranalysis researchers. This represents actually a decrease of about 3% compared to the first half-year of 2015. The average unit price experienced an even harder drop, down by 9% in comparison to last year. What are the reasons for China decreasing its taste for wine?
First of all, the biggest reason for this can be found in the Chinese government policy of the beginning of the year. The policy, that affects the wine import, can be described as the “three public expenses”. These are limiting of the public funds regarding buying and using cars, traveling overseas. And hosting meetings. This reduction of public funds has caused many companies, who use to be the main purchasing power of wine, to lower their demand for the good drop. Nevertheless, The analysts of Tranalysis forecast an increasing import volume of wine in the next months, due to lower unit prices and the increasing demand for lower price wine sorts, mostly less than 100 yuan.
The consumption of wine is still mostly concentrated in Chinas Tier 1 cities, namely Beijing, Shanghai, Guangzhou, and Shenzhen. These are the cities with the highest income and the biggest density of companies and enterprises.
According to the research of Tranalysis, France continues to be the largest exporter of wine to China with a quantity of 12,054,964 liters in the first half of 2016. Other countries like the USA, Spain, or Germany are far behind with a volume of 80,831 liters, 50,868 liters, and 39,978 liters respectively.
Also, the unit prices of the different exporting nations differ a lot. The highest unit price was achieved by France with $21.47 per liter. The next unit prices are $15.12 by Armenia and $12.28 by Chile.
From November 25 to November 27 the 17th China International Wine Industry Expo was held in the Beijing Exhibition Center. Exhibitions in Shanghai and Guangzhou will follow soon. Exhibitors and Visitors are confident, that the wine industry in China will be steadily increasing in the long term.
Despite the short-term lower import volume of bottled wine, China’s total alcoholic beverages import is in a good shape, according to China Association for imports and exports of wine & spirits. For the months of January to October, China imported more than 1.8 billion liters of alcohol in total. This demonstrates a value of $3.5 billion, which is an increase of 13.89% compared to last year’s first 10 months.
Tranalysis is an intelligence and analysis provider on import/export data covering agriculture, chemicals, and life science industries in China. Tranalysis, founded in 2001, provides users not only a large amount of import/export data in China but also analysis to help monitor the market trends. Our clients include Monsanto, BASF, Syngenta, and SinoChem.