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Falling Chinese demand for wine hits global producers by 17/04/2023  


China’s wine market has experienced a significant reduction in its imports since 2017, affecting the main producing countries around the world. The COVID-19 pandemic, an increase in local wine production, a surplus of stocks accumulated in previous years and an exit from the Australian market due to tariff disputes are the fundamental reasons that explain the phenomenon, according to industry sources consulted by Efegrass.

Globally, China’s wine imports are set to increase from 286 million liters in 2010 to 751 million in 2017, an increase of 162.6%, and then drop to 337 million liters in 2022, up 55% from 2017 and represents a decrease of 20.6%. 2021, according to data from the Spanish Wine Market Observatory (OEMV).

The shock has particularly affected Spain, which has seen its export volume to China drop by 69.9% since 2017, trailing only Australia with a 98.6% drop.

Billing has followed a similar trajectory, and last year alone, China slashed its global wine imports by 11% over 2021, turning out to 9,693 million yuan (about 1,290 million euros). In this context, Spain lost 27.1% to 687 million yuan (about 91.4 million euros).

The COVID-19 pandemic has had an impact on the Chinese economy, affecting mobility and reducing alcohol consumption. The decline in purchasing wine as gifts has also affected the market, as China has a strong culture of gifts as a symbol of courtesy and good manners.

Furthermore, experts point out that the Asian country has reduced its imports due to the accumulation of liters over the years. The growing local production of wine in China, the world’s third country in area of planted vineyards, has also been cited as an important factor.

Given these circumstances, some experts believe that China’s wine imports will rise again in the future, although not to the “exaggerated” levels in 2017.