China Poised to Challenge Europe in Wine Exports, Says Research

Jan 08, 2014, 04:44 ET from Aroq Ltd

LONDON, January 8, 2014 /PRNewswire/ --

The European wine sector will eventually have to battle with China in the international wine market, according to new wine industry market research from market commentator

Although China currently exports only around 100,000 hectolitres of wine a year, a report, entitled 'The Post-Recessionary Face of the West European Wine Market', states that the country is already a top-ten global wine producer and consumer. "China presents little threat currently to the world wine trade," says in the report, "but a time will come where production exceeds domestic needs, thereby adding to the growing competition faced by Western Europe on the world stage."

For the time being, however, rising domestic consumption means China's value as a market "offering huge export potential" overshadows the challenge that the country's growing wine industry may pose to the established wine-producing countries. Wine consumption in China has grown by 57% over the past ten years to 17.8bn hectolitres in 2012, the report has found. "At the same time imports have grown exponentially."

Increased competition from China in the future represents an unwelcome threat to the European wine sector, which has seen its share of the world wine market decline in recent years. In 1995, France, Italy and Spain together represented around 52% of the global wine supply, according to the report. Ten years later, that figure had fallen to 50% and it now stands at a new low of 44%.

"European viticulture is facing intensifying competition through a mix of increasing trade liberalisation and the rise of the New World wine producers," the report states.



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