Wine Export - China (Market & Pricing)

The large and growing potential wine market in China offers many exciting opportunities for wine exporters, but dominating the high-end market, competition among exporters is fierce. Early market entrants like France and Italy have high market recognition and are known as 'Old World' suppliers of quality, premium wine products. Later market entrants like Australia, Chile and the USA are called 'New World'. Their wines are perceived as a little less prestigious but more value for money.

An expanding middle class, rising incomes, a growing interest in Western lifestyle and tastes, and better wine education have driven rise in consumption. While 80% of all wine consumed is red (it's perceived as healthier and red is the colour for good luck)

In China, domestic brands still dominate the large, price-sensitive market segment with 57 percent of red wine and 61 percent of white wine sold at under RMB60 (A$10) per litre. Mid-range wines (RMB60-120= A$10-20/L) continue to grow as consumers have higher disposable incomes and better wine education. Imported wines (retailing between A$16-65) are a much smaller market percentage, but opportunities for bulk shipping and bottling in China could greatly reduce import prices, bringing them on par with domestic wines. Premium wines constitute 10 percent of total volume sales. Expatriates and wine aficionados are the main target market for these wines.

In China, on-trade sales (clubs, pubs, bars) still lead wine sales (70 percent), but off-trade sales (supermarkets, discounters, direct sales) are showing an increase as people seek cheaper prices in boutiques, supermarkets and over the internet, and buy more wine as gifts.