The Vinexpo Study on Asia: huge growth and lots of Baijiu
China and Hong-Kong have been analyzed by the study, delivering some amazing numbers in terms of growth. And I also learnt the existence of Baijiu, a white spirit distilled from sorghum, wheat or rice.
China: the world’s fastest growth in wine consumption and the world’s biggest spirits consumption.
On the wine market
- China shows the biggest growth in wine consumption. Between 2009 and 2013, the rise was of 69,3%. The speed of the growth will slow down (due to stock buildings and anti-corruption actions by the government), but the Vinexpo study still predicts a growth by a further 24,8% between 2014 and 2018.
- The reasons fueling this increase in wine consumption are varied
- China possesses a large local industry
- The middle class is expanding quickly
- Wine is considered healthier than Baijiu
- Also, consumers are looking for sophistication, and wine does have that aura
- Still wines dominate the market, and essentially red wine.
- The main supplier of China is France, Australia follows far behind
About the spirits market
- China is the largest spirit consuming nation in the world
- Baijiu is the main spirit drunk in China. Its consumption jumped by 49,4% between 2009 and 2013. However, it should only rise by 2,7% by 2018. The reason is the anti-corruption drives done by the government, and the fact that Chinese consumers are shifting to imported spirits and wine.
- Therefore, imported spirits should experience a significant growth; 22,7% by 2018 according to the study.
Hong-Kong: wine consumption goes down, but sparkling offers opportunities
- The market saw a decline of wine consumption for the first time since 2008.
- Mainly French wines suffered from the decrease
- Chinese investors are looking at other investments than expensive French Grand Crus
- However, China and Hong-Kong still are the largest market for Bordeaux wines in volume and value
- France, Australia, the US and Chile are the main suppliers of wine
- Despite the market decline, both Australia and the US experienced growth
- Supermarkets are becoming more important as a distribution channel
- Sparkling wines are predicted to be the next big thing. The vibrant dining market and its growing tourist clientele are fueling the demand.
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