France’s domination of the Chinese wine market takes a beating

Monday February 25 2019 by Vitisphere

 “After an outstanding year in 2017, there may also be some overstocking”, pointed out Santiago Diaz Herrenschmidt. “After an outstanding year in 2017, there may also be some overstocking”, pointed out Santiago Diaz Herrenschmidt. - Photo credit : Prowine China

France remains the leading source of imported wines in the Chinese market, but its competitors are hot on its heels. In just a year, France’s market share fell from 31% to 26% by volume and from 39% to 37% by value, according to GTA statistics collected by the Business France agency. Concurrently with this, Chilean and Australian wines surged ahead, both of them reaching 24% of market share in volume terms. Conversely, Spanish and Italian wines remained in decline, holding 10 and 5% of volumes.

Benefiting from free trade agreements, "the New World is taking over the entry-level segment. We have to be careful about changes to market shares, but the figures are not bad from a value perspective. The Chinese market is far from mature, but there is a move upmarket”, commented Santiago Diaz Herrenschmidt from the Wine and Spirits Division of Business France.

In 2018, China imported 1.8 million hectolitres of French wine generating revenue of €903 million, which translates to decreases of 22% by volume and 7% by value. According to French data, shipments of French wines totalled 1.4 million hl worth €603 million in 2018, down -34% and -20% compared to 2017. Chinese customs record all imported French wines, whether they come from France or transit through a hub, while French customs calculate exports shipped directly to China, explained Adrien Broussard from the Business France statistics department.

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