Wine Intelligence: Australia drives China’s imported wine growth

Australia could soon surpass France as China’s biggest source for imported wines with the most recent report by Wine Intelligence affirming the country’s key role in driving China’s imported wine market.

According to Wine Intelligence’s most recent report, China Landscapes 2018, it shows that imported wine consumption, particularly wines from Australia, continues to rise in the country.

Consumer feedback from Wine Intelligence’s ‘Vinitrac China’ survey has confirmed Australia’s position as a leading imported wine source country – it has the second highest awareness and consumption levels after France: 53% of urban upper-middle class imported wine drinkers in China are aware of Australia as a wine-producing country, while 36% have drunk wine from Australia in the past six months.

In the 12 months ending in March this year, Australia’s wine exports to China soared 51% to AU$1 billion, a record for a single country, making it the most lucrative export market for Australia. In 2019, based on the two countries’ Free Trade Agreement, import tariffs on Australian wines are expected to be eliminated.

French wines still take up the lion’s share of China’s imported wine market, responsible for 41% of all bottled imported wine, followed by Australia’s 26.7%, based on figures from China Association for Imports and Export of Wines and Spirits.

The Wine Intelligence survey conducted over three years collected responses from urban upper middle class residents with at least RMB 5,000 (US$754) in monthly income in 12 different cities.

More importantly, the country’s retail landscape is fast changing as well, with online commerce continuing to gain traction.

Although the proportion of consumers who shop for wine online (48%) has not increased in the past year, the declining use of bricks-and-mortar channels shows e-commerce is continuing to gather momentum.

The retailer usage confirms this trend with China’s leading e-commerce platform JD.com (42%) surpassing Walmart (35%) to become the retailer with the highest proportion of wine drinkers for the first time in the Chinese market. Meanwhile, its main rival Alibaba’s Tmall (33%) came in third, according to the report.

In terms of brand recognition, domestic wine giants Changyu and GreatWall have the highest overall Brand Power scores among all the brands tested in 2018, thanks to their high positioning in the ‘awareness’ and ‘purchase’ indices among all the brands. However, for imported wine brands, DBR Lafite, Yellow Tail and Penfolds are the most recognised among Chinese consumers, according to the report.

Wine Intelligence research director Chuan Zhou commented: “One might think the most successful imported wine brands in China are predominantly from Bordeaux. That might have been true five years ago when imported wine was primarily associated with gifting and business occasions, but as the market is shifting towards personal consumption, more imported brands from Australia, Chile and other major producing countries are building their presence in China and connecting with their audiences.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Supply Chain Assistant

Speciality Drinks
London NW10 7SF, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
West Midlands & Northants

Supply Chain Co-ordinator

Speciality Drinks
London NW10 7SF, UK

Logistics Team Leader

Speciality Drinks
London, UK

Key Account Executive

Berkmann Wine Cellars
London, UK

Assistant Operations Manager

Speciality Drinks
London, UK

Technical Manager

North South Wines
West Drayton, UK

Key Account Manager

MMI Maldives
Maldives

TERRITORY SALES MANAGER

Eurowines Limited
Harrogate, UK

Business Manager - Impulse

Australian Vintage
Croydon, UK

Exclusive Masterclass: Chablis on Tour

London,United Kingdom
29th Apr 2019

Vinexpo Bordeaux

Bordeaux,France
13th May 2019

London Wine Fair 2019

London,United Kingdom
20th May 2019
Click to view more

The Global Grenache Masters 2019

Deadline : 26th April 2019

The Tuscan Masters 2019

Deadline : 26th April 2019

Click to view more

The Global Riesling Masters 2018

View Results

Rioja Masters 2018

View Results

Click to view more