New market opportunities for wine in China
Wine sales in China are expected to increase 50 percent between 2013 and 2016. Australian wine producers have the opportunity to differentiate themselves from international competitors by concentrating on marketing more premium vintages in China.
China’s demand for vintage wine provides a great opportunity for Australia’s wine producers.
Australian wine producers have the opportunity to differentiate themselves from international competitors by concentrating on marketing more premium vintages in China.
Wine sales in China are expected to increase 50 percent between 2013 and 2016, with demand in large part driven by the rapidly expanding middle class.
Speaking at the Savour Australia wine conference in Adelaide, Dean Pearson, NAB’s Head of Industry Analysis, said Australian producers have an opportunity to offer more premium vintages. “While demand for this premium product is still in its infancy, it presents an opportunity for substantial growth in China moving forward,” Pearson said.
“Asia, and particularly China, is producing more wine domestically, with some analysts predicting its wine production could overtake Australia’s next year.”
“As China’s middle class continues to grow, so too should its demand for more premium products, including quality vintages that can’t be produced en masse locally.”
According to the NAB Rural Commodities Wrap from July 2013, global wine consumption is forecast to increase by five percent between 2012 and 2016. By then, wine sales in China are expected to overtake France, which would make China the second biggest wine consuming country in the world, behind the United States.
“The value of Australian wine exports to China was up 19 percent in 2012 so if Australian producers can differentiate themselves in the market, they can go some way to staying ahead of international competitors.”
Of added interest to Australian producers are opportunities beyond wine exports. Through to end June 2013, Chinese visitor numbers to Australia increased 17 percent on 2012 figures.
“We’re seeing a trend in Chinese tourists venturing beyond Australia’s big cities, which is encouraging news for regional tourism and the small businesses that drive it,” Pearson said.
“The wider interest in Australian wine is reflected in the growing number of visitors to wineries each year.”
“Tourism could increasingly become a way for Australian wineries to supplement their businesses and capitalise on the growing presence of their wine in China.”
NAB has been established in Asia for over 40 years and works with Australian producers to support building and developing relationships, understanding the market and exploring opportunities that tap into growing Asian markets.
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