China’s wine market to reach US$137.3bn in 2024, says GlobalData

The Chinese wine sector is projected to grow from C¥464.2bn (US$68.1bn) in 2019 to C¥922.7bn (US$137.3bn) in 2024, with a compound annual growth rate (CAGR) of 14.7%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘China Wine – Market Assessment and Forecasts to 2024’ reveals that the sector is majorly driven by growth in the still wine category, which is forecast to register the fastest value CAGR of 14.7% during 2019-2024. The category will be followed by sparkling wine, which is expected to record a CAGR of 14.1% during the next five years.

Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The growth in the Chinese wine sector is being driven by the increasing disposable incomes coupled with the rising premiumization trend owing to growing consumer preference for quality over quantity. Additionally, the perception of wine as a healthier drink due to its low alcohol content and perceived beauty and health benefits has led to the increased consumption among females, thereby, driving further growth in the sector.”

On-trade transactions led the Chinese wine sector in 2019. It is followed by food & drinks specialists and hypermarkets & supermarkets.

The value share of China in the global wine sector is expected to increase from 18.3% in 2019 to 30% in 2024. Similarly, the country’s share at regional level is expected to increase from 66.5% in 2019 to 76% in 2024.

Yantai Changyu Pioneer Wine Co Ltd, Tonghuagrapewineco., Ltd and Dynasty Fine Wines Group Limited were the top three companies in the Chinese wine sector. Changyu and Tonghua were the leading brands in the Chinese wine sector in volume terms in 2019.

Ms Agarwal concludes: “With the increasing globalization and the Government of China trying to establish wine culture in the country, Chinese consumers are becoming more appreciative of the wines from diverse cultures. As a result, they are opting for more expensive wines as well as experimenting to find a suitable product as per their taste palates. Moreover, evolving e-commerce channels for wine purchases are also boosting the growth in the Chinese wine sector.”

More Media