Premium Essay

Wine in China 2013

In: Business and Management

Submitted By wzq3415
Words 5357
Pages 22
MarketLine Industry Profile

Wine in China
August 2013
Reference Code: 0099-0800

Publication Date: August 2013



0099 - 0800 - 2012 Page | 1

Market value
The Chinese wine market grew by 20.7% in 2012 to reach a value of $22.7 billion.

Market value forecast
In 2017, the Chinese wine market is forecast to have a value of $44.9 billion, an increase of 97.8% since 2012.

Market volume
The Chinese wine market grew by 18.6% in 2012 to reach a volume of 1,564.1 million liters.

Market volume forecast
In 2017, the Chinese wine market is forecast to have a volume of 2,909 million liters, an increase of 86% since 2012.

Category segmentation
Still wine is the largest segment of the wine market in China, accounting for 96% of the market's total value.

Geography segmentation
China accounts for 54.2% of the Asia-Pacific wine market value.

Market share
Yantai Changyu Group Company Limited is the leading player in the Chinese wine market, generating a 21.9% share of the market's volume.

Market rivalry
The Chinese market for wine is fairly fragmented with numerous players present.


0099 - 0800 - 2012 Page | 2

Executive Summary ....................................................................................................................................................... 2 Market value............................................................................................................................................................... 2 Market value forecast…...

Similar Documents

Free Essay

Market Growth Imported Wine in China

...Imported Wine in China By Yuki Mabuchi Brief Introduction With rapid growth of Chinese GDP over the past few years, China is now the world's fastest growing wine consumption market and yet still has huge potential as a market growth. Since Wine drinking is considered a healthier alternative to spirits and somewhat trendy, red wine is particularly popular in China. However, 90% of the wine consumed in China is still produced locally, and it is marketed as low price wines. Therefore, it is impossible for imported wines to compete with Chinese wines on the price. Each imported wine company are challenged to find their differentiation and own marketing tools. Even though market percentage for imported wines is 10%, the prospects for continued growth are huge because of the rapid increase in wealth and increasing urbanization of the population. The main topic for my research is to analyze market growth of imported wines in China followed by Chinese WTO regulations. The research estimates the impact of market growth according to import tariff rate which declined to 14% since China joined WTO. In addition, all imported wines are subject to a range of additional taxes, duties or fees, such as liquor tax, education tax, value-added taxes and consumption taxes. These taxes, duties and fees are taken into account in the analysis which estimates the impact of a tariff reduction on the retail price of imported wines in China. The......

Words: 568 - Pages: 3

Free Essay


...of the previous seasons, followed by feasible recommendations in order to boost the sales of our restaurant in the fore season. FINDINGS: The overall sales performance of each type of wine is analyzed. From the data, French red wine is the most popular wine being sold on average. From November, 2011 to March, 2012, the sales performance of French Red wine is the best. However, from April to June of the same year, sales of French red dropped, having an overall 8.48%, being overtaken by sparkling wine having an overall 11.51% of sales. From July to August, sales of French red regained and overtook that of sparkling wine, having an overall 12.01% of total sales. Due to the high demand of French red wine, this essay would mainly focus on French red wine. Also recommendation on some of the red wines would also be given. Fig 1. Comparison between the sales performance of French Red wine and the sparkling wine I. FRENCH RED WINE: High Sales Wine:Hauts de Carras From the data ,Hauts de Carras has a constantly high sales over the year: Oct-Dec,2011 | Jan-Mar, 2012 | Apr-Jun, 2012 | Jul-Aug,2012 | 3.66% (43 bottles) | 3.06%(35 bottles) | 2.13%(24 bottles) | 0.66%(4 bottles) | Description: Hauts de Carras is a medium body wine from Paulliac region. It is blended wine containing 45% Merlot, 50% Cabernet sauvignon, and 5% Cabernet Franc. It has the taste of woody nose with hints of vanilla and red fruit. Also, it has firm but not too strong tannins, which......

Words: 1434 - Pages: 6

Premium Essay


...The first one is the business and productive model implemented by the NW, which corresponds to a mass production of varietal wines, with quality consistency, obtained by large industrial enterprises with significant economies of scale. By contrast and as previously mentioned, the productive and business model implemented by the OW was characterized by a business network of cooperatives and enterprises (mostly familiar and of small and medium size). The second one is the commercial and marketing strategy implemented by the NW, leading to better consumer information of the product characteristics; i.e. wines are sold under brands with strong investments in marketing and advertising campaigns. By contrast, the commercial tradition of the OW involved an intricate system of denominations of origin, varietal and geographic areas that were difficult to understand by a novice consumer. The last potential reason is the emergence of strong governmental support in the NW during the '90s and the beginning of this century. This support, known in the specialized literature as the "National Brand Plans", had the primary aim of improving the wine export performance in the long Term. Australia was the pioneer in the development of such national scope plans in June1996, launching its celebrated plan called "Strategy 2025". Its aim was to reach an export turnover of 4.5 billion Australian dollars by the year 2025. The resounding success of the plan meant that in 2005, 20......

Words: 269 - Pages: 2

Premium Essay


...November 20, 2013 Wine The creation of wine dates back prior to written history, earliest known production tools found in the ancient Middle East about 6000BC. Wine has influenced royalty, religion and wars throughout the ancient world, playing an important role in each culture. Today, wine has managed to maintain its luster in society, being produced and consumed in large amounts worldwide. The production of wine has proved lucrative business for many years, and for many reasons. From grape farming to creating different varieties to pricing the bottles, there is a good amount involved in the wine production process. For the world of “winos” (people addicted to wine), there could never be enough of this sweet nectar. While the wine making process was developed about 6000BC, many improvements and innovations have taken place over the past 8000 years. Today, the production of wine is worldwide, manufacturing nearly 6.5 billion gallons per year. According to the International Wine Guild, the United States consumes 762 million gallons per year, ranking third overall in wine consumption across the world. The top three innovations in wine production include Biodynamic Viticulture, micro-oxygentation, and fuel creation from the waste. Biodynamic Viticulture involves the process of using the farm and surrounding land’s eco-system to best determine ways to get the most yields along with controlling pests. Micro-oxygentation is used to improve the flavor of a wine by......

Words: 1380 - Pages: 6

Premium Essay

Chilean Wines

...key factors which significantly cause businesses to gain competitive advantage in a particular industry. Moreover, knowledge resources, raw material, unskilled labour force are the non-key factors. Last reported number of total labour force in Chile is 8,037,177 (Trading economies (2013). Nevertheless, skills, abilities and cost of the labour force are factors which significantly affect to development of competitive advantage (REF). Education systems in Chile are not stronger as other developed countries in the world. Nevertheless, it has achieved major improvements in recent years due to the improvements of government funding (4.2% from GDP). Word bank figures (2012) indicate that 49.1% of Chilean labour force is with secondary education and 25.2% are with tertiary education. Moreover, literacy level of aged between 15-24 years olds has increased to 99% (UNISEF, 2013). Chile can be identified as a high income country (World Bank, 2013) and its labour costs of Chile ranks XX which is fairly higher than the other countries in the region. In addition, unemployment rate is 5.7%. Level of infrastructure is strong in Chile is vital to development of Chilean wine industry. World Bank indicators (2013) demonstrate strong railway (, air transport (97433 registered carrier departures) and road systems ( in Chile. Moreover, access to fresh water is raked in XX due to positive weather conditions and natural rivers. Telecommunication system, electricity and internet availability is......

Words: 1884 - Pages: 8

Premium Essay

Italian Wine Export in China

...14 Issues in internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian......

Words: 13025 - Pages: 53

Premium Essay

Exporting Wine to China

...1/11/2011 China as The New Geographical Market To Export Melita Wines Executive Summary In this report focus is brought forward to the Chinese wine Market. A detailed analysis is done on the market, followed by the competition faced by imported products. Key locations in China for wine importation are named and the Chinese drinking habits are analyzed. The Chinese and Maltese relations are studied. And Cisk is taken as a case study as a success story of a Maltese company that is exporting beer to China and is seeing profits. Lastly, the recommendations and way forward are said as a conclusion. Table of Contents Contents Page Title Page 1 Executive Summary 2 Table of Contents 3 Chinese wine industry 4-5 Competition and Pricing 6 Key locations 7 Drinking habits 8 China- Malta relations 9 Case study 10 Recommendations 11 Bibliography 12 * Brief History of the Chinese Wine Industry While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four hold around 50 % of the market share. Imported wine reached the height of its popularity in 1996 when it occupied half of the Chinese market. When China moved to restrict wine imports with quotas and high tariffs, domestically produced wine......

Words: 2241 - Pages: 9

Premium Essay

China Wine Market

...China wine market 1.1.2 Asia wine market SWOT Analysis Strengths—Huge background, High-quality products, K/A (Key Account)Customer communication system, Mystery of France. Weaknesses--The confusion wine market, how to make our brand become a well-known   brands, how to open the sale channel Opportunities--Huge market demand, purchasing power &private consumption growth, Traditional viniculture present, the right distribution partners, the good advertising partners Threats--Aggressive producers, Domestic product, Consumer acceptance 1.2 China wine market general introduction As we all know, Asia market now is a new develop market, it is still confusion (the wine law, the regulation).So, we choice the focus market in Asia--China to enter, this will reduce the trouble of our market development. We should be aware that the Asian market, 95% wine consumption is face to the civilian population, only 5% high-end products sells to truly rich wine collector. Of course, with the further development of Asian economies, which 5% people will continue to expand. For the past few years, the maximum annual production of Chinese wine was about 30 million tons; it was less than 2% of beer output and 6% of Chinese liquor production, also it was only 1% of the world wine production, and the consumption per head was equivalent to France, Italy, Spain and other developed countries by 0.5%. China’s demand for wine will be reaching 600,000 tons by 2010, thus, the wine industry in......

Words: 4074 - Pages: 17

Premium Essay

Wine Business in China

...Quentin VATELOT April, 15 2013 Asian Economics The wine business in China. For about 20 years, China has shown a particular interest to wine. China has been making various forms of wine for some 2,000 years, although not in a style resembling western wines until the 20th century. China claims over 160,000 acres of vineyards nationwide, but many are located in remote areas, such as Xinjiang, where Silk Road traders brought seeds centuries ago. Despite this history, the wine industry in China has only recently begun to develop into a significant market. Twenty years ago Chinese consumers tended to drink beer and grain spirits, but in 1987 the Chinese Government began to focus on reducing alcohol related illnesses and encouraged consumers to drink less grain-based spirits, and more beer and grape wine. In the 1990, wines in China were really bad quality, and small quantity. For 20 years, they have imported European type of grapes and techniques that increase the production and the wine quality. This interest to wine is mainly due to the emergence of a high class in China who has been more and more interested in European luxury goods like wine and other spirits like Cognac which China is already the biggest market. Wines have gradually attained consumer acceptance, not least due to Chinese Premier Li Peng, who in 1996 decreed that state banquets should be enjoyed with wine instead of spirits. The influence of western eating and drinking habits has been key in......

Words: 1281 - Pages: 6

Premium Essay

Dalat Wine

...Scientific Article DALAT WINE: CHALLENGES IN ESTABLISHING THE NATIONAL WINE BRAND POSITION IS STILL YEARS AHEAD -*Ngo Binh, MA. in Marketing Bui Thi Lan Huong, PhD. I. COMPANY HISTORY 1.1 Wine manufacturing traditional in Dalat (Vietnam) Dalat wine has been popular in Dalat, an attractive city located 1500 m above sea level on Langbian high lands. For long time ago, Dalat wine has been produced traditionally by local producers from blackberries (dau tam). Traditional wine makers in Dalat grow themselves dau tam at Bong Lai area. It is reportedly that the first wine producer was Lafaro, a local company founded by Nguyen Huu Duc in 1974. This company imported a new variety of dau tam to produce its wine. Unfortunately, the company stopped to operate in 1975. Nguyen Chi Man, a 80-year-old man, who did distribute this wine at that time, asked the company's owner this variety of mulberry' seeds to grow, then to make wine for his own consumption and later on for his small business in Dalat. Since then, other traditional wine makers follow him to open wine factories and mulberry plantations, especially in Bong Lai. Because of their small scale, they did not build up particular brand name for their wine. Dalat wine has been considered effectively as a “geographical indication”. Dalat wine has been consumed mostly by Dalat residents. The mind climate of Dalat is the favorable place for consuming red wine, especially in traditional holidays. According to Nguyen Trong Anh Dong,......

Words: 7353 - Pages: 30

Free Essay

Wine in China

...human growth factor Categories: Cell-Communicating Ingredients The topic of human growth factor (HGF) is exceedingly complicated. The physiological intricacies of the varying HGFs and their actions challenge any layperson’s comprehension. Nonetheless, because the use of HGF seems to be the direction some skin-care companies are taking, and because there is a large body of research showing its efficacy for wound healing (but not for wrinkles), it does deserve comment. HGFs make up a complex family of hormones that are produced by the body to control cell growth and cell division in skin, blood, bone, and nerve tissue. Most significantly, HGFs regulate the division and reproduction of cells, and they also can influence the growth rate of some cancers. HGFs occur naturally in the body, but they also are synthesized and used in medicine for a range of applications, including wound healing and immune-system stimulation. HGFs are chemical messengers that bind to receptor sites on the cell surface (receptor sites are places where cells communicate with a substance to let them know what or what not to do). HGFs must communicate with cells to instruct them to activate the production of new cells, or to instruct a cell to create new cells that have different functions. Another way to think of HGFs is that they are messengers designed to be received or “heard” by specific receptor sites or “ears” on the cell. HGFs, such as transforming growth factor (TGF, stimulates collagen......

Words: 802 - Pages: 4

Premium Essay

History of Wine

...Name Professor Course Date History of wine Introduction The earliest evidence of production of wine was found in Georgia and Iran. The altered conscious that is produced by wine is considered to be religious. The Greeks worshiped Bacchus and Dionysus, and the people of Rome carried on the cult. However, the consumption of wine was one part of practices of Jewish people even during the biblical times. In the last supper, the wine was used in commemorating Eucharist thus becoming a Christian church essential. Muslims forbade consumption as well as the production of wine. However, during the golden age, the Muslims were using wine for industrial purpose, for example in perfume production. Further, the distilled wine was used for the medicinal purpose (Shapin, 12). The information regarding the first wild grapevine cultivation is still uncertain (Brown, 145). Grapes grow in Azerbaijan, Armenia, Georgia, southeastern and coastal Turkey, the northern Levant and northern Iran. The fermenting of wild grape was easier due to the development of pottery in the Neolithic period. One of the oldest wineries discovered was in vayot dzor, in the Arena- 1 cave. In the site, there were fermentation vats, cups, jars and a wine press (Brown, 145). Wild grapes vines and seed were also found. In early Bronze Age, there were plenty of domesticated grapes in the near east. Further, there is an evidence of wine production in Egypt and Sumer (Shapin, 12). According to......

Words: 1267 - Pages: 6

Premium Essay

From Beijing Jeep to Asc Fine Wines: the Story of an American Family Business in China

...1. Was Beijing Jeep a success? After  the  Chinese  reform  and  opening­up policy led by Deng Xiaoping, China attracted many  foreign  direct  investment  because  China  aims  to  increase  their  economic  growth,  infrastructure,  technology  and  other  industries.  During  that  time,  the  only  way  a  foreigner  company  could  enter  the  Chinese  market  was  through  a  joint  venture  and  this is how Beijing  Jeep emerged in 1984.   It  was  a  huge  step  that  an  American  firm  could  extend  their  business  to  one  of  the   biggest  markets  in  the  world,  however  we  consider  that  Beijing  Jeep  was  not  successful  in  China,  because  during  this  period,  the  economy  of  China  was not stable and the Chinese market was  not able to purchase this type of goods.   Also, when the joint venture started, the production of vehicles was difficult compared  to their  expectation,  due  to  different  perspectives  related  to  the  production  line.  One  of  the  main  challenges  was  the  foreign  exchange  to  pay  for  the  import  of  the  kits  coming  from  United  States, because the Chinese government did not allow the export of hard currency.   Beijing  Jeep  could  continue  their   production  line because they reached an agreement with the  Chinese  government  to  eventually  release  hard  currency.  Besides,  they  get  a  high  support  from  them  as  investment  in  infrastructure  and  require  ordering  Jeeps ......

Words: 1238 - Pages: 5

Premium Essay


... Wine In the story Wine the author Hayashi Mariko subtly sketches a modern Japanese career woman as a developing round character who is constantly evaluating her relationships with men. While in Quebec for a business trip Ms. Sone is being taken on a tour along with others through different areas within Quebec. They are they taken to a very exclusive and important wine cellar of Canada. “Oh, wine. Just hearing the word makes me tense.” As the reader can tell wine must not be a very strong subject to Ms. Sone. “But wine is my weak area,” she says. Knowing very little of the subject she offers to buy a bottle to take back as a souvenir of the trip. Picking one of extremely lavish quality just to splurge on the occasion Ms. Sone picks one thinking it is costing her forty-five dollars in reality ending up to have a final cost of one hundred forty-five dollars. In complete shock of the price she decides it is of too much importance to drink in a regular occasion with regular people and decides to save it for something or someone special to share it with. The wine now became of some importance to Ms. Sone due to the price tag which came with it. Like those who she mocked she guarded the bottle as it were a real life baby While thinking of those to share it with she immediately crosses out her boyfriend Kunihiko because she thought he had no appreciation for it. After saying “ Lets drink that expensive wine together to celebrate your......

Words: 545 - Pages: 3

Free Essay

Wine Culture at Table in China

...HTM421 Essay#2 2011/10/31 Wine culture at table in China Wine culture play an important role in daily life, and its special function is so unique that nothing can take the place of it. Chinese wine culture enjoys a high reputation in the world. In this paper I want to do some research on the types of wine, the utensils of drinking, the ways people drink, the reasons why people drink wine and the function of wine culture at table in China. As a matter of fact, the term of wine culture was first put forward by Guangyuan Yu, a renowned economist professor in China (Li D, Hui Y, 2005). Wine culture was gradually formed after wine appeared, but nobody defined it clearly and completely for a long time. Until 1944, Jiacheng Xiao said that wine culture was the integration of material, technical, spiritual, custom, psychological and behavior phenomena which generated around the center – wine (Li D, Hui Y, 2005). The wine culture at table has two sides of contents. On the one hand, it involves the content that is about the production of wine; on the other hand, it consists of the content that is about drinking wine. The types of wine in China China is located the east of Asia, which has extensive plain, fertile soil and warm climate, so it is fit for developing agriculture. Long time ago, people began developing agriculture. They planted some crops in their fertile soil of the land every year, and the crops such as grain, rice, wheat, sorghum, millet, barley......

Words: 1628 - Pages: 7