Volume Increase Value Drop in China -Wine Imports Data 2017
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Write | WBO Morris
Translate and Edit | WBO Kiwi
China wine imports data from the first quarter of 2017 has come out a few days ago.
In 2017, a total of 151,163,863 liters of wines were imported into China, with a value of 581,276,728 USD, according to China custom data. The number has increased 8.7% in volume and -1.6% in value compared to 2016.
Imports volume of bottled wine reached 113,317,160 liters, with a value of 537,426,021 USD. Imports volume of bottled wine has scored a 5.7% increase in volume and -3.4% in value compared to 2016.
Imports volume of bulk wine reached 113,317,160 liters, with a value of 30,557,778 USD. The imports number of bulk wine has increased 21.4% in volume and 35.6% in value.
A total of 2,557,480 liters of sparkling wine were imported to China, with a imports value of 13,292,929 USD. Imports volume has dropped 8.2% while imports value has increased 13.6% compared to 2016.
2017 Imports Data of the First Quarter
WBO Comments:
1. Seen from the slow recovery of imported wine industry, it’s likely that wine market recovery from 2015 is based in the unstable situation, apart from macro-economic reasons. Some importers complained that off-season has come ahead of time, sluggish sales were felt in China wine market obviously. WBO has concluded three reasons as follows:
Prices of famous Chinese liquor has increased in the past months and distributors spent much cash on that part, which lead to the tight budget in wine importing. From the beginning of 2017, ex-work prices of Maotai, Wu Liangye and Guojiao1573 were adjusted and affected imported wine purchasing and distribution.
2. Certain venture capital has quit from wine industry after 2-3 year loss, which made the number look unpresentable. Some was disclosed in downturn of its supporting industry, while some transferred capital to other profitable industries.
3. Cost rise in low end wine and its shipment plus with importer’s stock up of cheap wines made medium or high end wine still not grasp the right opportunity to grow. Wines in VCE and AOC level are largely needed by vintners, which attributed to the slightly increase in volume and drop in value.
As for both volume and value increase in bulk wine imports, WBO found that certain wine producing countries has comparative advantages and with fast refreshing speed.
Whereas the reason for the volume drop and value increase in sparkling wine imports lies in the long time “aggressive” entering and the upgrade of “fundamental” market. Years before, many Chinese importers have imported sparkling wines crazily, however, importers were later distressed by following problems such as bad taste, short expiry date and overstock. All these experiences taught them import new fizz with better taste and quality.