According to the latest report by GlobalData, China’s wine segment is expected to grow at a double-digit CAGR of 11.5% from Rmb 268.6 billion (US$42 billion) in 2021 to Rmb 462.4 billion (US$70 billion) in 2026.
GlobalData attributed the growth to a rebound in economic and social activities which will spur on-premise and off-premise wine sales.
The report entitled ‘China Wine – Market Assessment and Forecasts to 2026’ disclosed that market growth will be primarily driven by the still wine category, which is set to register the fastest value growth (CAGR) of 11.5% followed by the sparkling wine category with 11.3%.
However, COVID-19 lockdowns and restrictions continued to undermine wine sales in 2021, with the value sales in local currency units declining annually by 2.7% in 2021. On-trade sales contributed the bulk of wine sales in China in 2021, followed by food & drinks specialists and hypermarkets and supermarkets.
Meanwhile, the per capita consumption on wine in China decreased from US$36 in 2016 to US$35.6 in 2021. This is still far below global average of US$65.3.
Domestic players like Yantai Changyu Pioneer, Dynasty Fine Wines Group, and Tonghua Grape Wine were the top 3 companies in China’s wine market in volume terms in 2021, while Changyu and Dynasty were the leading brands.
