China's wine industry enters into growth

With the continued decline in European grape growing area and wine production since 2000, the global wine supply trend has gradually eased. Therefore, the average price of wine trade also showed an upward trend.

The proportion of imports from the American wine industry rose from 12.7% in 1990 to 31.9% in 2010. We analyze the consumer trends in the US wine industry, as well as the share and positioning of the top three companies, and believe that the United States' imported wine is likely to be a structural supplement to the domestic high-end wine consumption in the United States.

China's wine industry is facing import challenges. Differentiated characteristics of imported wines meet diversified needs. Global wine supply surplus + insufficient supply of domestic grapes and wine, and China's wine industry entering a rapid growth period will attract more new entrants and imported wines to join market competition.

However, imported wine does not necessarily form pure low-price competition with domestic wine. At present, the average price of imported wines (excluding tariffs and excise duties) is basically the same as the average ex-factory price of the domestic wine industry. The average price of imported wine is not generally lower than domestic wines.

Imported wines have differentiated characteristics and advantages in many aspects: for example, the differentiation of grape varieties and wine taste, the differentiation of producing areas, and the differentiation of marketing and promotion methods. How to meet the increasingly diversified consumer demand may be one of the directions that domestic wine companies need to work hard in the future.

Staged industry demand stabilisation or instigator This year, domestic wine companies are affected by both the short-term fluctuations in demand and the lag in imported wine responses leading to supply fluctuations. The domestic wine companies suffered from the declining demand climate and the double squeeze of imported wine and inventory. Stabilizing phased demand will help the industry and leading companies grow steadily.