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Industry Overview

wines-info.com by Beauvoir Su02/06/2005  

* General Description
With the largest population in the world, the past two decades saw the rapid economic development in China, people's living standard has been improving greatly, so has the demand of consumption.  Yet the development of the wine consumption falls far behind that of the total consumption.  The consumption level of Chinese wine market remains low, people has little knowledge on the appreciation of wine, and the popularity of wine culture is to be enlightened.  All these make China as the most promising wine market in the world.

 

Not a few international enterprises are to develop Chinese wine market.  Yet there are some difficulties on this way due to the lack of insight into this industry.  Therefore, it is important and urgent to provide effective wine information and market consulting service for the international colleagues, and provide the proper wine knowledge to the Chinese consumers as well.

 

* About China
China has mad great strides in wine production, from raw materials to the quality of wine, and the market share has been increasing year by year.  In connection with international and steadily rising quality standards in wine production, China takes the chances of reviving and stimulating her wine culture and market by proper strategies.

 

* Statistic Data
China's current annual wine production capacity is about 300,000 tons, accounting for only one percent of total domestically-made alcohol.  China's per capita wine consumption of half a litre a year lags still some way behind the average global consumption of 7.5 litres per annum. But wine consumption in China is growing rapidly.  The Chinese government, in a drive to reduce alcohol related illness, has, since 1987, been promoting the idea that consumers drink less of the traditional grain-based spirits, and drink more wine.

 

From 1994 to 2004, while global wine output grew by a respectable 6.5 per cent, China's wine consumption increased by an incredible 61.8 per cent. And according to a market survey carried out last year, market demand for wine products in China is set to continue to grow by an average of 8 to 10 per cent a year.

 

Statistically, the total wine output in 2004 reached 367,000 tons, increased by 14.7% over the previous year, and the sales income totaled 7.434 billion yuan, with a growth rate of 17.06%.  Grape and wine industry has taken on great foreground and market potential. 

 

China, with a present per capita wine consumption of only one percent of Germany's or half a percent of France's consumption, seems to be the only country with a big potential growth-oriented market.

 

* Wine Laws & Legislations
As a result of the rapid development of the international wine market during the latter part of the 20th century, most of the wine producing countries have introduced production quota regulations and quality.

 

China recently reduced tariffs on wine from 65 per cent to 14 per cent under the WTO agreement, which allows better access to imported wines and foreign suppliers.