The globalisation of the wine industry: new world, old world and China

Abstract

Purpose -As the Chinese economy continues to develop, rising incomes for many people has meant significant shifts in consumption patterns. Over the past several years, per capita wine consumption in China has doubled. Although off a relatively low base, this still represents a significant sales volume. At the same time, the wine industry in the country has been undergoing restructuring with China now emerging as a major producer in world terms. These developments have been occurring at a time when the global wine industry has become increasingly globalised with so-called new world (NW) suppliers challenging established European companies in existing and emerging wine markets. In this context, the paper aims to look at the possible threats as well as opportunities presented by China as a relatively new player in the market. Design/methodology/approach -The paper reviews recent production and consumption trends in the world wine market. The changing patterns and growing volume of global wine trade is then assessed in light of the significant structural changes occurring in the industry in both importing and exporting countries. Recent developments in the wine market in China are identified and possible future implications for the world market are discussed. Findings -NW wine producers are increasingly encroaching on traditional wine consuming markets and gaining advantage in new and growing markets. One result has been an expanding and increasingly competitive global market place. China, meanwhile, is seen to have considerable potential for growth in terms of wine consumption, while at the same time posing a possible threat to existing exporters in third markets. Originality/value -Knowledge of emerging trends in wine markets and likely future developments are important for industry participants as well as policy makers in countries where wine is an increasingly important traded commodity. The paper provides an important contribution to the understanding of the global nature of the wine industry and the potential influence of China as both a major producer and consumer of wine.

The evolution of foreign wine demand in China

“…Additionally, the Chinese government has actively promoted the consumption of wine over grain-based spirits since the 1980s in an effort to promote healthier drinking habits and to divert grain from alcohol to food production (Thorpe 2009). The Chinese government now serves wine at state banquets to further promote wine as a preferred beverage, and Chinese consumers are following suit (Sun 2009).…”

Consumer Behavior Insights, Consumption Dynamics, and Segmentation of the Japanese Wine Market

“…Studies by Lee (2009) and Thorpe (2009) executed in other Asian markets pointed to the fact that wines produced from an Old World country like France have high status value and are likely to be preferred to wine from a New World country like Australia. This formed the foundation for the development of Research Question 2: RQ2: Do Japanese consumers have a stronger preference for wines produced by Old World countries?…”

“…Recently there has been an increased focus in research studies examining the attractive business opportunities offered by the burgeoning Asian wine markets (Beverland 2002;Lee 2009), and more specifically that of Thorpe (2009), who identified growth prospects for both New and Old World wine producers in China. Although useful, these studies were largely generic (executed on Asian markets as an emerging wine market entity overall) or market specific but not consumer specific (i.e., Spielmann and Babin 2011).…”

los factores de desempeño comercial de los grandes países exportadores en los mercados vitivinícolas de granel y embotellado en el siglo XXI

“…1). Se trata de un fenómeno impulsado por la globalización que ha cambiado las reglas de juego del comportamiento de los mercados [1][2][3][4].…”