The Chinese Wine Market Projected to Expand to 2017
30 August 2013
In China, wine was traditionally consumed during the New Year and other cultural celebrations. This has changed with consumption steadily increasing. According to Canadean, Growth is expected to continue over the next five years, as the sector grows at a value Compound Annual Growth Rate (CAGR) of 7.6% to 2017, with slightly lower volume growth of 5.7%.
According to Ronan Stafford, Canadean Wine Report Analyst, the wine sector is doing well in China as a strong wine culture develops.
“Rapid value growth shows how premium wines are doing well in the Chinese market, as consumers become more discerning as a stronger wine culture develops. However, high levels of counterfeiting mean that having a strong distribution strategy is key.”
Still Wine Leads the Sector in Value And Volume
In 2012, 96.3% of volume was taken up by Still Wine, whilst its value share was 93.5%. The category is forecast to see a value and volume CAGR of 7.7% and 5.7% to 2017. Sparkling Wine is forecast to see growth below the sector average to 2017, with value at 7.1% and volume 5.7% CAGR. This is because Sparkling Wines are often considered to be too acidic for the Chinese palate.
On Trade Distribution Accounted for the Largest Share of the Wine sector
All main distribution channels gained share between 2009 and 2012. On Trade distribution accounted for over half of the Chinese Wine market in 2012. Food & drinks specialists and Hypermarkets & Supermarkets each made up around a quarter of the remaining market share, although the latter channel saw the smallest increase in share.
The Canadean Report: ‘The Future of the Wine Market in China to 2017’ was published in July 2013
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