China's crowded wine market offers no lifeline for struggling global industry

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Everything to know about the April 8 eclipse in Atlantic Canada | SaltWire #eclipse #atlanticcanadaSHANGHAI - Australia's wine industry has cheered news that China will drop anti-dumping tariffs, re-opening its market to imports, but the tougher economic conditions of 2024 are unlikely to deliver the sparkling growth winemakers seek.

China's"apparent consumption" of wine in 2023, which includes imports and domestic production, was barely a quarter of its peak in 2017, with annual import volumes shrinking two-thirds over that period, he added. China's alcohol market is the world's biggest, estimated at $336 billion, though a fiery domestic spirit, baijiu, dominates it. And efforts to claw a bigger share for foreign beverages have been stymied by consumer malaise after COVID-19.

"China is so difficult, the environment is so hard," said Yu, who is based in the commercial hub of Shanghai. While exceptional offerings such as Penfold's are likely to receive a fillip, the re-entry of Australian wines to China will be tough for many other producers already battling serious issues of oversupply.

Still, ramping up Australia's export capacity to China will need time, and imports in a shrinking overall market are unlikely to quickly reach 2019's pre-pandemic figure of A$1.2 billion .

 

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