Wine importers experience shaky start to 2019

The decline in the fourth quarter drove the drop in the whole year's import value. From January to June last year, the imported value of Italian wines actually jumped by 25.45 percent, while starting from the third quarter, its growth speed slowed down, and the value dropped remarkably in the fourth quarter.

Chu Guohui, China CEO of Direct Wines Ltd, said supply is greater than demand as the latter has been dampened by numerous external factors, such as China-US trade tensions and the fluctuating yuan exchange rate, as well as internal factors. Thus, the lower-than-expected sales during Mid-Autumn Festival in September last year caused the excess inventory.

With the continuous rise of foreign winemakers exporting their products to China, along with the expansion of sales channels, competition in the imported wines market in the country has become increasingly fierce.

Christianson said Chinese consumers are becoming much more sophisticated and adventurous in their wine preferences, and they are willing to try wines from more countries. Countries like the United States, South Africa and Argentina will see faster growth in the market, he noted.

"New World wines are very suitable for the Chinese pallet. These wines are suitable for a number of growing Chinese consumers who have limited purchasing power and may not be able to afford premium wines," he said.

"The strong relationship between the Chinese and wines will continue to grow. The high number of young and female wine enthusiasts is very exciting. People across the country are becoming sommeliers or getting certifications in wine. Many more mature consumers are gradually shifting away from drinking traditional Chinese spirits to enjoying wine with their meals or at gatherings. These will be the ones setting the wine trends in China in the near future," he said.

This year, the total sales volume of still light grape wine (still red, white and rose wine) is expected to reach 2.65 billion liters in China, up 6 percent over 2018.

The total sales value of still light grape wine is forecast to reach 395.73 billion yuan ($58.7 billion), up 6 percent over last year, according to market research provider Euromonitor International.

By 2022, the total sales volume of still light grape wine is expected to reach 3.11 billion liters, expanding 24.4 percent over 2018. The total sales value is expected to reach 467.35 billion yuan in 2022, up 25.3 percent over 2018, Euromonitor International found.