With 570,000 hectares of vineyards, China is now the world's fifth largest wine producer. The country also ranks fifth among wine-consuming nations worldwide. Earlier this year, the Chinese became the world's largest red wine drinkers, surpassing the French who had held this position since time immemorial. In the Middle Kingdom, red wine is favored because the color symbolizes happiness. But that is not all. Since the country's opening to capitalism, the Chinese have developed a strong appetite for products from Europe and the United States. Wine is among them. It has become fashionable to drink this delicate beverage in a country where rice wine is the national alcoholic drink.
In 2013, the Chinese consumed 1.86 billion bottles of wine! Between 2000 and 2012, consumption increased by 67%. Furthermore, the Chinese are fond of gifts; they enjoy both receiving and giving them. Gift exchanges focus on food. A young mother does not receive a layette for her newborn; she is offered eggs. In China, one does not ask someone how they are doing; one asks whether they have already eaten. Nourishment is central to Chinese culture and social relations. The rise of wine consumption in this country therefore pleases everyone, as it provides one more gift option. Moreover, a prestigious gift. Officials of the Communist Party understood this well by importing expensive Bordeaux wines as well as bottles of the finest French cognac. However, since the arrival of Xi Jinping, elected president in summer 2013, things are changing. The new government has launched an anti-corruption campaign. Already in 2013, Bordeaux wine exports dropped by 18%. Pernod-Ricard with its "Martell" and "Rémy Cointreau" brands saw their sales decline by 21.5%. France has reason for concern. But does this represent an opportunity and a chance to export our wines to China?
The answer is not straightforward. The average Chinese consumer spends between 10 and 35 euros on a bottle of wine. Our production costs, combined with high transportation fees and import taxes, do not allow us to compete in this category. Our wines, of impeccable quality, are not known in China; they therefore remain expensive and unaffordable for most Chinese consumers. But this may represent a future niche market? Time will tell.
Sources: Statistical Report on World Vitiviniculture OIV 2013 / Vinexpo & IWSR 2014 / Véronique Besson.
