Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Excluded
Executive Summary
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- The market
- Retail volume is flat
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- Figure 1: Retail volume sales for wine in China, 2012-22
- Retail value is recovering – mid-range wines is trending
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- Figure 2: Retail value sales for wine in China, 2012-22
- Companies and brands
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- Figure 3: Retail value share of top 10 companies in wine market, China, 2015 and 2016
- The consumer
- Red wine is still the dominant type while penetrations of other types drop
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- Figure 4: Penetration of different types of wine in the last 12 months, July 2017 vs August 2016 vs October 2015
- Preference on different types of wine
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- Figure 5: Preferred country of origin in the last 12 months, by users of different wine types, July 2017
- Majority is interested in wine with unique tastes
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- Figure 6: Interested innovations, July 2017
- Origins of wine is the most important product label
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- Figure 7: Important product labels – Always look at it, July 2017
- What we think
Issues and Insights
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- Targeting younger consumers through different methods
- The facts
- The implications
- Flavour association could be an important purchase consideration
- The facts
- The implications
- Wine can capitalise more on being “natural”
- The facts
- The implications
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- Figure 8: Wine promoting natural production methods, international markets, 2016
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- Figure 9: Selected wine with organic claims, International markets, 2016
The Market – What You Need to Know
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- A flat retail volume market and a slowly growing retail value market
- Wine diversification emerged in China and rise of the New World Wine
- Still wine dominates while Champagne/sparkling wine needs breakthroughs
Market Size and Forecast
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- Retail volume is flat
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- Figure 10: Retail volume sales for wine in China, 2012-22
- Figure 11: Still wines and sparkling wines: retail market volume consumption per capita (population), China vs international markets, 2012-17
- Retail value is recovering and mid-range wines is trending
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- Figure 12: Retail value sales for wine in China, 2012-22
Market Factors
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- Imported wine market is increasing in volume but slowing in growth speed
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- Figure 13: Imported wine volume, China, 2012-17
- Wine diversification emerged in China
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- Figure 14: China’s bottled wine import figures, 2016 vs 2015
- Rise of New World Wine thanks to free-trade deals
Market Segmentation
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- Red wine gradually declining but is the dominant type
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- Figure 15: Retail market segmentation of different types of still wine, by volume, 2012-17
- White wine and rosé maintained stable growth in volume share
- Champagne/sparkling wine needs breakthroughs
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- Figure 16: Retail market share of different types of wine, by volume, 2012-17
Key Players – What You Need to Know
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- A fragmented wine retail value market
- Competition via online and offline among wine dealers and retailers
- Compete with origins, brand stories and packaging
- Global trends may apply to China
Market Share
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- Mid-range wines and mass market developments have potential
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- Figure 17: Retail value market share of top 10 wine companies, China, 2015 and 2016
- Yantai Changyu losing share due to shrinking premium ranges
- China Food struggles to go premium
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- Figure 18: Great Wall Wine associated with BRICS 2017 China
- Xinjiang Yizhu and Turpan Loulan – Using local speciality to gain share
Competitive Strategies
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- Competition via internet among wine dealers
- Competition among retailers offline and online
- Compete with origins, brand stories and packaging
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- Figure 19: Changyu ZuiJiuXian, China, 2016
Who’s Innovating?
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- Global product trend: rise of organic wine
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- Figure 20: Product claims in new launches – Organic and premium, wine, global, 2012-16
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- Figure 21: Wine with organic claims, international markets, 2016-17
- Global packaging innovation: environmentally friendly and cans
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- Figure 22: Product claims in new launches – Packaging, wine, global, 2012-16
- Figure 23: Wine with environmentally friendly or convenient package claims, international markets, 2016-17
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- Figure 24: Underwood wine, US, 2014 and 2017
- Figure 25: Flipflop Fizzy Crisp White Wine, US, 2015
- Flavour innovation: global overview and China application
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- Figure 26: Top flavours of wine, global, 2015 and 2016
- Flavour innovation via Champagne/sparkling wine
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- Figure 27: Selected Champagne, sparkling wine, Prosecco, international markets, 2008-17
- Flavour innovation via fortified wine
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- Figure 28: Selected fortified wines, international markets, 2017
The Consumer – What You Need to Know
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- Preferences in all wine types are moving towards younger adults
- Every day or almost users still lacking; imported, premium and niche types have potential
- France top the list while China follows
- Women seeking flavour and packaging variety while men loving limited edition and famous Chateaux
- Red wine has most consumption occasions
- Retail has highest penetration for wine and can be segmented further
Penetration of Different Types of Wine
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- Red wine still the dominant type while penetration drops for other types
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- Figure 29: Penetration of different types of wine in the last 12 months, July 2017 vs August 2016 vs October 2015
- Tier one cities have higher penetration among all wine types than tier two and three cities
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- Figure 30: Penetration of different types of wine in the last 12 months, by city tiers, July 2017
- Preferences in all wine types are moving towards younger adults
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- Figure 31: Preference on different types of wine in the last 12 months, by age, July 2017 vs August 2016
Drinking Frequency
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- Every day or almost users still lacking and imported, premium and niche types have potential
- Once a week or more users are most common for still wine types
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- Figure 32: Drinking frequency in the last 12 months, July 2017
Preferred Country of Origin
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- France top the list while China follows
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- Figure 33: Preferred country of origin, July 2017
- Preference by different types of wine
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- Figure 34: Preferred country of origin in the last 12 months, by users of different wine types, July 2017
- Niche types of wine have potential from New World
Interested Innovations
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- Majority is interested in wine with unique tastes
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- Figure 35: Interested innovations, July 2017
- Women seeking flavour and packaging variety while men loving limited edition and famous Chateaux
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- Figure 36: Interested innovations, by gender, July 2017
- Older and younger consumers have different innovation interests
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- Figure 37: Interested innovations, by age, July 2017
- High earners are somewhat adventurous
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- Figure 38: Interested innovations, by monthly household income, July 2017
Consumption Occasions towards Different Types of Wine
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- Red wine has most balanced multiple consumption occasions
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- Figure 39: Consumption occasions towards different types of wine, July 2017
Purchase Channels
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- Retail has highest penetration for wine and can be segmented further
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- Figure 40: Purchase channels in the last 12 months, July 2017
- Older consumers prefer retail while younger favour on-trade
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- Figure 41: Purchase channels in the last 12 months, July 2017
Important Product Labels
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- Origins of wine is the most important product feature while sensational attractiveness also plays an important role
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- Figure 42: Important product labels – Always look at it, July 2017
- Gender is a differentiator
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- Figure 43: Important product labels – Always look at it, by gender, July 2017
- On-trade wine consumers are slightly more sophisticated
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- Figure 44: Important product labels, by consumers who purchase in different channels, July 2017
Meet the Mintropolitans
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- Mintropolitans have higher penetration across all wine types
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- Figure 45: Penetration of different types of wine in the last 12 months, by Mintropolitans vs non-Mintropolitans, July 2017
- Not necessarily more “every day or almost” users among Mintropolitans
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- Figure 46: Drinking frequency in the last 12 months, by Mintropolitans vs non-Mintropolitans, July 2017
- Mintropolitans consume more different types of wine in overlap occasions
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- Figure 47: Consumption occasions towards different types of wine, by Mintropolitans vs non-Mintropolitans, July 2017
- Chateau has the biggest gap between MinTs and Non-MinTs
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- Figure 48: Important product labels, Mintropolitans vs non-Mintropolitans, July 2017
Appendix – Market Size and Forecast
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- Figure 49: Retail volume sales for wine in China, 2012-22
- Figure 50: Retail value sales for wine in China, 2012-22
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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