CHINA’S WINE PRODUCTION DROPPED FOR THE 6TH YEAR THOUGH DECLINE ABATING
By Tony Zhu
Credit: Siulan Law Mathews
China’s wine production dropped to 5.24 million hectoliters (mhl) in 2019 from 6.29 mhl in 2018, and is the sixth year of decline in a row, according to latest data released by China’s National Statistics Bureau.
However, the sharp 37% production decline seen in 2018 seems to be abating, despite that it’s still a double-digit drop.
There is no doubt that China’s wine market is still slowing, it was dampened by the country’s slowing economy and Donald Trump’s trade war on China.
China’s domestic wine market has been hardly hit by the ever-increasing popularity of imported wines in recent years.
The last time domestic wine enjoyed good time in China was before President Xi Jinping’s anti-graft campaign in 2012 when the country had years of fast growth in wine consumption and production.
The campaign put a brake on consumption, local producers were seriously affected. In what was seen as a double whammy to them, imported wines started to become popular at the same time, leading local producers to respond by reducing production.
In the face of serious competition from imported wines, many producers have shifted to producing higher quality wines which also limit the quantity produced.
Despite having the second biggest area under vines at some 0.85 million hectares after only Spain, China’s wine production has been in continual decline.
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