China Beer & Wine Market Growing Fast!

In my various visits to China, Korea and Japan, I have been continually impressed by the growth of interest in wine and beer and convinced that there must be great opportunities for North American winemakers and wineries in this booming economic region. Thus, a quick excerpt of a new report by the reputable British research group Just-Drinks.com seems well worth citing in our Publisher's Notebook.

The recent research report "Alcoholic Drinks in China, 2006 edition" by Just-Drinks.com, documents the impressive switch going on in the China market away from spirits and to beer and wine. The wine market has "more than doubled over the past five years", according to this report.

"Taken as a whole, the report says, the Chinese alcoholic drinks market is both large, and still growing rapidly. The increased number of drinking outlets, especially bars and nightclubs, as well as restaurants, have helped to increase market penetration for all alcoholic drinks. In addition, the spread of organised retail chains has helped to provide greater market penetration for the home consumption market. In addition, Chinese consumers are becoming more sophisticated, and highly brand conscious.

"The Chinese beer market has grown at an astounding pace in recent years, the report goes on to say, spurred on by the massive levels of foreign investment in the market, along with the rise in the average levels of consumer spending in China, thanks to the economic reform policies of the government.

"Total consumption of beer grew by 33.56% between 2000 and 2006 to reach 30.47bn litres, and China has now overtaken the US to become the largest national beer market in the world.

"Wine is also beginning to gain greater consumer acceptance. The influence of Western eating and drinking habits has been key to this evolution, as have rising average incomes in China. Indeed, wine is now becoming the fashionable drink for the wealthy younger generations in China's cities, and the "badge" drink of China's wealthiest élite. The value of the market has more than doubled over the last five years."

Incidentally, it has also been recently reported that wine produced in China (from wine grapes, rather than the traditional rice or plum wines) is now being imported to the North America for the first time.
/earl singer