Conducted by June
The study conducted by June during 2013 has concluded that China has become 4th largest importer of wine by volume. The data collection conclude the wine consumption increase by 142% from 2007-2011 achieving level of 159. 25 million cases. The indications suggest forecast for China to increase by 39. 62% between 2012-2016. This is most steep growth even while comparing growth in US and Russia. The data collected by studies also that retail sales of wine in China during 1999 were only 3. 76 billion RUM that has been increased to 20 billion RUM by the year 2008. The annual average growth is estimated to be 20% that is phenomenal.
Another significant factor observed is import of bottled wine for quality purposes as compared to import of bulk wine import values. The trend of drinking wine has changed in the middle class consumer base with demand for quality bottled wine. Demand for quality wine in terms of quantity is very low in both countries as compared to western countries. In spite of western countries. Indian Imports of alcoholic beverages are as under: source FRET Research 2013 The improvement in wine demand leading for more consumption is also due to the act that it is considered as a healthier alternative to spirits and is somewhat trendy.
Amongst the different varieties of wine, red wine has become most popular in China based on data collection from existing and new wine bars and boutique wine stores that have come out in major cities like Shanghai, Beijing and Guanos. The demand is being generated form younger generations especially professionals and business people in both the countries. China allows the supermarkets and other outlets to sell all types of domestic as well as imported wines. China is also becoming wine producing country by adding number of premium wines by the mommies producers.
Looking at the future prospects of wine consumption, European wine houses have now made investments in China for production of wine in China especially in Pangaea region of Sandhog Province which has climatic and soil conditions similar to those of the world famous wine region of Bordeaux. Future investors in wine trading or manufacturing in China will have to consider brand and packaging. Provision for advertisements and brand building expenses need to be considered. Significant move from China is lowering down of import tariff rate for wine from 65% to 14% after Joining WTFO.
This has attracted the foreign investors as creating more opportunities for foreign wines as against local producers with higher taxed spirits. It can be easily concluded that China is still emerging as a wine consumption market based on the increase in sales since 2007 and improvement in wealth of people with increasing arbitration of the population (Wobble, 2010). Bottled Wine Imports from 2004 till 2009 in USED Million Source GAITS, (from China Customs Data), 2010 The above referred graph indicates that France still dominates with 48% market share of the imported bottled wine segment in 2009.
Australia had 21% share and other producers such as Italy, Chile and the USA have only 6% or less. Potential demand of wine segment in India is expected to be high in future years as the market is expected to mature in next decade. The varieties commonly available in India include Red wine, white wine, sparkling wine and rose wine. The consumption of wine differ with different culture in different parts of India with Iambi accounts for 38% of the total wine consumption in India followed by Delhi at 22%, Bengal and Ago at 10% each and the remaining 20% in rest of the country.
It is important to mention that approximately 74 facilities out of 92 wineries in India are located in southern state I. E Maharajah’s. It will not be incorrect to say that wine capital of India is in Maharajah’s State. Majority of foreign suppliers are France (40%), Italy (15%) and Australia (12%) out of the total imports in India. The markets in India are opening up with major local players entering in a big way. Karakas Wine Board (KGB) is planning to set up a dedicated wine park at Throat village in Bujumbura. KGB serve wine and beer at its outlets across India.
Pizza Hut has already started serving nine in its five outlets in Bangor and wine and beer at two outlets in Delhi. Source RPR Study, Alcohol sector in India. The demand for wine in India has increased with production in India has also increased. Domestic companies are now producing wines and exporting to 22 countries. Though not as steep growth in China Indian markets are also showing improved trend and the data analysis has indicated the growth in wine markets in India at 13% annually that is faster than any other alcoholic beverage.