My OperaExporting Wine to China
Friday, March 23, 2012 8:56:59 PM
Over the past seven years, exporting wine to China has experienced a remarkable growth. About a two-fold increase! As a result of this economic boom, China is seeing dramatic growth in the size of its middle and upper classes. These growing classes have increased the demand for luxuries associated with a more lavish lifestyle. At the crux of this lifestyle change:
Wine.
And lots of it.
Currently, grape-made wines account for only about 10 percent of the wine consumed in China. Plum and rice wines account for the other 90 percent. These plum and rice wines are often of lower quality and taste. As a result, they are frequently mixed with soda or other juices prior to consumption, to achieve a more pleasant flavor.
While red wines have been the dominant export to China, accounting for over ninety percent of total exports, the immature Chinese Palate is beginning to develop a taste for white wines. Although white wines only make up about ten percent of the market share, a 20 percent increase in 2010 was recorded for exporting wine to China. The Chinese prefer a softer taste and are developing a growing affinity for Chardonnay. The amount is only expected to grow over the coming years.
Naturally, as the wealth of Chinese citizens rises and desire for luxury increases, so does the demand for finer wines. What does this mean? Palates are slowly becoming more refined and people eschew plum and rice wines in favor of higher-quality grape wines. As a result, United States wineries and vineyards are enjoying an increase in exporting wine to China.
Overall bottled wine importation into China increased by a whopping 2368 percent from 2002 to 2009, according to Wine-Info.com. The United States saw a 42 percent increase in exporting wine to China in 2011. While China only imports about 8 percent of its wine from the US, it ranks as the fifth largest market for US wines. This is up from 2003, when Chinese imports ranked it as the twenty-fourth largest market.
US Exporting Wine to China
And when it comes to the US exporting wine to China, California is king. California wineries account for almost 90 percent of all United States wine exports. In fact, 20 percent of all California bottled wines are sold internationally. China accounted for roughly $45 million of US wine revenue in 2010, which is dwarfed by the staggering $435 million brought in by wines exported to members of the European Union.
However, the momentum behind the rise in the US exporting wine to China shows no signs of letting up any time soon. With a market of 1.4 billion that has been largely untapped until recently, China has the potential to become the major consumer of US-produced wines. Only time will tell what exactly this means for US wine revenues. But one thing is for sure:
It’s going to be big and Royal American Wines will be apart of it.
Exporting Wine to China
Wine.
And lots of it.
Currently, grape-made wines account for only about 10 percent of the wine consumed in China. Plum and rice wines account for the other 90 percent. These plum and rice wines are often of lower quality and taste. As a result, they are frequently mixed with soda or other juices prior to consumption, to achieve a more pleasant flavor.
While red wines have been the dominant export to China, accounting for over ninety percent of total exports, the immature Chinese Palate is beginning to develop a taste for white wines. Although white wines only make up about ten percent of the market share, a 20 percent increase in 2010 was recorded for exporting wine to China. The Chinese prefer a softer taste and are developing a growing affinity for Chardonnay. The amount is only expected to grow over the coming years.
Naturally, as the wealth of Chinese citizens rises and desire for luxury increases, so does the demand for finer wines. What does this mean? Palates are slowly becoming more refined and people eschew plum and rice wines in favor of higher-quality grape wines. As a result, United States wineries and vineyards are enjoying an increase in exporting wine to China.
Overall bottled wine importation into China increased by a whopping 2368 percent from 2002 to 2009, according to Wine-Info.com. The United States saw a 42 percent increase in exporting wine to China in 2011. While China only imports about 8 percent of its wine from the US, it ranks as the fifth largest market for US wines. This is up from 2003, when Chinese imports ranked it as the twenty-fourth largest market.
US Exporting Wine to China
And when it comes to the US exporting wine to China, California is king. California wineries account for almost 90 percent of all United States wine exports. In fact, 20 percent of all California bottled wines are sold internationally. China accounted for roughly $45 million of US wine revenue in 2010, which is dwarfed by the staggering $435 million brought in by wines exported to members of the European Union.
However, the momentum behind the rise in the US exporting wine to China shows no signs of letting up any time soon. With a market of 1.4 billion that has been largely untapped until recently, China has the potential to become the major consumer of US-produced wines. Only time will tell what exactly this means for US wine revenues. But one thing is for sure:
It’s going to be big and Royal American Wines will be apart of it.
Exporting Wine to China
