Updated Sep 2, 2022 14:27

Wine Market in China

Market Overview
The Chinese wine market contracted to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, enjoyed a tangible increase. Wine consumption peaked at $ in 2018; however, from 2019 to , consumption remained at a lower figure.

In value terms, wine production dropped to $ in estimated in export price. Over the period under review, production showed buoyant growth. The growth pace was the most rapid in 2010 when the production volume increased by %. Over the period under review, production hit record highs at $ in 2018; however, from 2019 to , production failed to regain momentum.


Consumption
In , consumption of wine decreased by -% to litres, falling for the third year in a row after three years of growth. Over the period under review, the total consumption indicated a pronounced expansion from 2007 to : its volume increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against 2019 indices. Wine consumption peaked at litres in 2019; however, from to , consumption failed to regain momentum.

The value of the wine market in China dropped to $ in , falling by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, continues to indicate a pronounced expansion. Wine consumption peaked at $ in 2018; however, from 2019 to , consumption failed to regain momentum.


Market Forecast
Driven by increasing demand for wine in China, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to litres by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
China remains a net importer of wine; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of litres, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.