continued - Grape and Wine Research and Development Corporation

Red wine accounts for 85% of China’s wine market
Red wine dominates the market and white wine consumption is developing in top tier cities
� Red wine accounts for ~85% of China’s wine
market while white and rose account for 14%
and 1%, respectively
� The preference for red wine (versus white wine)
amongst Chinese consumers relates to its image
of vintage, sophistication, heritage, investment
value, and healthiness
� In China, the color red also corresponds to fire
and symbolizes fortune and joy. Red is found
everywhere during Chinese New Year and other
holidays, family gatherings and weddings in
addition to being the color of the Communist
Party
� Consumers in more developed cities in China are
beginning to casually (ie, without food) consume
white wine (esp. female consumers), which will
boost white wine consumption in the future
� 84% (by value) of Australian wine exported to
China is red wine
� Exports of Australian white wine to China grew
strongly in 2009, however the average value fell
dramatically from AUD 3.75/litre in 2008 to
AUD1.4/litre in 2009 reflecting a large increase
of bulk wine from 18% of volume share in 2008
to 50% in 2009
Breakdown of China’s wine market
Source: Access Asia, Rabobank, 2010
Million 9L cases
Breakdown of Australian wine exported to China – bottled + bulk
Source: AWBC
Million 9L cases
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Still red Still white
2005 2006 2007 2008 2009
18