Overheating and macroeconomic factors: China imports less wine

12/08/2019

 

According to data from the Chinese Chamber of Commerce for the import and export of food products, in China Chinese imports of bottled wine decreased by 2%

 

China will drink less foreign wine in the short term. This is because the Chinese wine sector has slowed down as more than a third of the importers disappeared in the last five months.

In particular, overheating and macroeconomic factors have changed the economic landscape of wine; imports thus collapsed along with the number of importers in the first half of this year, thus making wine professionals reconsider their approach.

 

Chinese imports of bottled wine fell by 2% over the six months

 

According to data from the Chinese Chamber of Commerce for the import and export of food products, autochthonous products and animal by-products, Chinese imports of bottled wine have decreased by 2% over the six months.

In particular, according to the data, during the first five months, the value of imported wine fell by 21 percent compared to the previous year to USD 920 million and subsequently returned slightly in June. The number of importers decreased by 35% to almost 4,200 companies in the first five months.

 

According to Wang Zuming, the Chinese wine market has enormous potential and the slowdown will make the sector more mature

 

This slowdown in the sector marks the first stop from a continuous growth in recent years. Last year, in fact, wine imports to China increased by 1.1% compared to the previous year to 3.5 billion dollars with 720 million liters of alcoholic beverages shipped in the country. In 2017, the pace of growth was 18 percent, according to customs data. The three years ended in 2017 (again according to CFNA data) were the golden years of growth as the number of importers increased by 42% to 5,900.

At Yicai Global, Wang Zuming, deputy secretary-general of the China National Association for Liquor and Spirits Circulation, said the current bottleneck will allow wine professionals to rethink their strategies. Wang also added that the Chinese wine market has enormous potential and the slowdown will make the sector more mature. Moreover, the Chinese wine market of CNY80 billion (USD 11.4 billion) is still very small compared to the liquor sector worth CNY530 billion.

 

 

MORE ON THIS TOPIC

Leave a Reply

Your email address will not be published.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