International Market Research
China is known as worlds fastest growing market in wine consumption. It has become Australia’s fourth largest export destination for bottled wine and is now China’s second largest supplier of bottled wine next to France, supplying 21 percent of Chinas imported wines. Australian wines have always appealed Chinese wine consumers with their strong rich flavor. “Over the past ten years, wine consumption is china has revealed the strongest growth amongst all alcoholic drinks. The demand for good quality wine mostly suits a growing middle class customer base. Since China is a member of the World Trade organization (WTO), it has lowered its wine imported tariff rate to 14 percent from 65 percent creating more opportunities for foreign wine to enter the market. (Webley et al. 2010) Research suggests that there are almost 200 million people in China for whom bottled wine is seen as an element of desirable lifestyle, Australia is a preferred supplier of wine specially for the affluent middle class, who have a strong desire for luxury consumer goods. (Ricard, P 2010)
In the year 2012 Chinas wine market was valued at over US$10 billion with a market size volume of approximately two billion liters. The western eating and drinking habits particularly among young, ambitious people have heavily influenced the growth in China’s wine market. This is due to the perception of wine being a classy drink, as well as a symbolic association of class status. China’s wine market offers attractive opportunities for international businesses. Research indicates that Chinese consumers aged 25 to 44 are the largest consumer segment, representing more than half of the market. Research also showed that consumers over the age of 50 tend to drink the least amount of wine. The Chinese wine market is fairly consisted with the presence of various players. The fast-growing market is attractive to quite a large number of domestic... [continues]
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