Big Future for Aussie Wine in China: Euromonitor

The China-Australia Free Trade Agreement (ChAFTA) will further boost Australian wine producers at a time when Chinese wine consumption is recovering from the impact of government austerity measures, Euromonitor has reaffirmed.

In a white paper released this week, Euromonitor said 2014 had seen a recovery of the Chinese wine market, which returned to positive growth levels.

“This was also reflected in Australian exports, where in 2014 total Australian wine exported to China was 40 million litres - a return to pre-2012 levels,” the company said.

The ChAFTA signed in June will reduce tariffs on Australian wine to zero in four years, from 14 per cent on bottled wines and 20 per cent on bulk wines.

“This puts Australia on a level playing field with New Zealand and Chile, who benefit from their own FTAs with China, and represents a new opportunity for Australian wine producers who are currently involved in the Chinese market, or want to break into China’s wine imports and grow total exports to China, which stood at 371.2 million litres in 2014,” Euromonitor said.

“Through the ChAFTA, Australia’s agricultural sector can capitalise on its reputation as a clean, green producer of premium food and beverage products.”

The company said Chinese wine consumption continues to be driven by rising household incomes, with increasingly affluent consumers moving away from beer or spirits.

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