NEWS
CHINA'S WINE IMPORTS FROM SOUTH AFRICA JUMPED 192.8% IN H1 2021
By Tony Zhu
25-10-2021
Source: Wines of South Africa
China’s wine imports from South Africa jumped 192.8 percent by volume from January to June this year, according to data from China Chamber of Commerce of Foodstuffs, Native Produce and Animal By-Products (CFNA).
The growth is the highest among all other wine exporting countries including France and Chile, the Hong Kong-based South China Morning Post reported.
It is estimated that the value of South African wine exports to China could reach as much as USD35 million in 2021, and the total export value could increase to USD100 million in three to five years.
According to Wines of South Africa, the country exported 288 million rand (USD19.6 million) worth of wine to China in 2020.
Thanks to the an ongoing trade dispute between China and Australia, South African wines, along with other wine producing countries, enjoy new opportunities in the Chinese market.
There is currently a 14 percent tariff on South African wine imports to China, compared to Chile which enjoys zero tariffs on their wine exports to China because of a free trade agreement between the two countries.
But Chinese distributors of South African wines said the real challenge is not so much tariffs, it is raising awareness among Chinese consumers and importers that South Africa can produce quality wines.
Despite its increased popularity, South African wine still accounted for just 2 percent of the market share in China during the first six months of this year, up from 0.91 percent over the same period in 2020 and from 1.05 per cent over the same period in 2019, according to CFNA data.
Top wine-producing countries like France, Chile, Italy, Spain and Argentina have all gained market share in China this year.
With 42 per cent of the market share, France took over from Australia, occupying the top spot, followed by Chile’s 20 percent, Italy’s 10 percent and Spain’s 9 percent, according to data released by the China Association of Imports and Exports of Wine & Spirits.
Due to the punitive tariffs, Australia’s share of China’s wine market has plunged to just 7 percent – way down from the 40 percent it held during the same period last year.
(the writer can be contacted at: info@thewinechronicle.com)
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