Source: suite101
By: By Daniel Workman

Fifteen years ago wine consumption in China was close to zero. Today Chinese demand for imported wine is growing at about 30% annually, affording lucrative opportunities.

It will take time for a wine culture to develop in a country where wine appreciation is in its infancy. Chinese drinkers prefer beer and hard liquor; the per capita volume of wine consumption in China is only 6% of the world's average. China imports some $30 million worth of wine per year, very low when one considers that the world's largest winemaker Constellation Brands has annual wine sales that easily exceed $3 billion.

But wine is increasingly popular in cities like Beijing (population 15 million) and Shanghai (population 18 million). It's not surprising that wine exporters are anticipating strong revenue growth.

According to the Canadian Embassy in China, Beijing and Shanghai have the largest markets for western foods while their major hotels and restaurants prominently feature wine.

Red wine is now fashionable at lounges, night clubs, discos and some upscale Chinese restaurants and banquets. Because the Chinese press extols the health benefits of red wine, most Chinese consumers are attracted to wine for its health benefits rather than taste. Expensive bottles of red wine are now the latest "trophy drink" of newly rich Chinese, who drink wines when eating out as a sign of both wealth and sophistication.

White wines are the chosen drink of many Chinese women, who also create spritzers by mixing white wine with soft drinks.

Price is a major consideration for Chinese wine drinkers. Imported wines cost from US$10 to $20 per bottle, while low-quality domestic wines cost about $3 per bottle and dominate the bottom-end of the market. Domestic wine are produced from Chinese grapes blended with cheap imported bulk wine.