CHINESE RESEARCH DATA: DOMESTIC WINES ON THE RISE AMID DECLINE OF IMPORTED WINES
By David Ma
According to data released by a Chinese business research agency, China’s domestic wines may be on the rise while imported wines are starting to decline.
The Shenzhen-based ASKCI research agency recently released data showing that China’s wine import declined 13% in volume in the first two months to 1.18million hectoliters (mhl), while domestic wine production increased 11.8% to 1.14mhl in the same period.
By value the number did not bode well for imported wines as well, it declined by 10% year-on-year to USD 6.04million.
It is the first time in many years that imported wines have seen declines in both volume and value. Last year, though wine import declined by 8.95% by volume, it still managed to edge up 1.1% by value.
Given that the first two months are high consumption period because of the Chinese New Year, it is predicated that 2019 will be a challenging year for the imported wine market.
However, the first two months looked quite encouraging to domestic wines, production has sustain the momentum seen in the last quarter of 2018 and continued to pick up.
The 11.8% increase year-on-year represents production growth that has not been seen for years and may indicate that the continual decline in domestic wine production is possibly coming to an end.
Chinese producers might have responded to the slump in imported wines which started to gather pace from July 2018 by increasing production hoping to increase market share.
Some domestic producers believe that the current weakness of the Chinese currency will help locally produced wines to compete with imported wines.
China’s wine production has been in continual decline in recent years. 2018 was the fifth year of decline in a row bringing China down the global wine production league table from 7th to 9th place just after Portugal.
(the writer can be contacted at: DavidMa@thewinechronicle.com)
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