How Wine Is Helping the West Succeed in the China Market

(Minyanville) - Over the past 20 years, Chinese consumer tastes have changed and developed immensely. One industry that has, somewhat unexpectedly, grown is the wine industry.

According to International Wine and Spirit Research, China has become the world’s fifth-largest consumer of wine, and by 2015, is predicted to become the second-largest importer of liquor. 

The volume of wine imported to China increased from 114 million liters in 2006 to 283 million liters in 2010. Over the past few years, Chinese people have become increasingly aware of and knowledgeable about wine and wine culture. In particular, the market share of imported brands has grown rapidly. Although China's imports of wine from several countries, including Australia, New Zealand, and South Africa, has increased dramatically, French wines have been the most popular in China. China is the third-largest market for French wines with an estimated value of 800 million euros. The value of the Chinese market accounts for nearly 30% of Bordeaux's total wine exports, and in 2010, China passed the United Kingdom and Germany as the largest export market for Bordeaux wines.

Adapting to the Chinese Market

To succeed in China, you must adapt to the China market. While the consumption of wine is growing, wealthy Chinese people are also using it as an investment vehicle since there are minimal investment opportunities in China and growing inflation. The overall return for luxury wine in China even rivals gold, according to a China Daily report.