The Australian wine industry significantly contributes to the GDP in the economy and is one of the leading exporters in the world. China especially has seen a huge growth in importing Australian products, one of the key drivers for this is the emergence of the middle class, and this has exposed many consumers to western food and alcohol knowledge.

There has been phenomenal growth in the premium bottled sector in China, and with the favourable Australian and Chinese trading ties, the Australian export sector is set to further develop in the years to come.

Some of the reasons why Australian grape varieties have become so popular in recent years can be attributed to a few things. Let’s take a look at 5 reasons on why to buy Australian wine has become so popular around the world especially within the Chinese population.

  1. Wine is tasty with Food

Wine is universally sought to be great for pairing with food, there are many flavours and aromas that can complement food.  Flavour is a key driver in choice, therefore integrating flavours that facilitate Chinese palates can be a potentially huge market.

For example as white styles are often fruity and citric; it is great for Asian dishes such as noodles and soups. It is also a healthier option over beer, especially in red styles. There are close ties between Australia and China in terms of tourism, education and trade and that contributes to help shaping the cultures surrounding wine consumption as a number one choice with food.

  1. The growing middle class

China’s economy is one of the strongest in the world and proves in showing signs of not slowing down soon in the coming years. The growing middle class continues to expose consumers to western food and wine knowledge. It has also enabled access to wine in the lower tier cities. This can be attributed to growing disposable incomes, coupled with improved logistics of alcohol.

With incomes and knowledge of products to continue to rise in both the smaller and large cities in China, the middle class citizens have the income to fund ever increasing consumption. Coupled with this, increasing knowledge means consumers are purchasing for personal consumption, rather than as gifts, and the growing grape varieties in the market are only contributing to this.

  1. The growing success of Australian red wine

The prevalent misconception that Chinese don’t drink wine at home is not even remotely true. China’s growing affinity with Australian red grape varieties continues to substantially grow.

Australia is home to some of the best producers of red in the world, with over 21 separate regions leading to a strong variability of prices and styles. In conjunction, the favourable Australian climate, and decades of knowledge, contributes to this status.

As a whole, red is arguably is the best type of grape variety produced in Australia, and Shiraz is the number one red grape variety among consumers on the Chinese mainland and shows no signs of slowing down in the near future.

The key is to leverage on the already successful integration of red varieties into China, increasing marketing efforts and affordability of products will ensure further success in a foreign market.

  1. Globalisation & e-commerce

The emergence of globalisation in today’s economy continues to enable further integration and accessibility of wine knowledge and processes in countries around the world.  Information on the internet provides answers and important material to consumers, this is a feature of globalisation as the global economy continually becomes more integrated.

Mobile e-commerce accounts for a large portion of the sales; this is arguably a snapshot of what the future may hold in terms of the consumer purchasing process. Wine is an extremely intricate process and requires a certain degree of knowledge to appreciate what you as a consumer like and don’t like.

We have seen the popularity of Australian premium varieties further develop into the U.S, the growing trends in importing highlights the growing global popularity. The greater New York area is at the epicentre of the revolution of Australia premium bottles over the past 5 years.

  1. Tariff reductions

Traditionally, China had very closed markets not only in terms of tariffs but also in import regulations. However, the tariff reductions between the two counties have allowed for a growing exporting pattern with more profitable deals coming out of it.

Chinese importers are growing with confidence; the current tariffs imply the continuation of importing Australian wine in large numbers. The current drink of choice is mostly beer and spirits, with the increasing growth of wine due to the reductions in tariffs, a rivalry is emerging.

Buying Australian wine and send gifts to China has no doubt seen enormous advancements in recent years.  Reducing tariffs, rising middle class and globalisation are just a few reasons for this. If trends continue, the opportunities for the Australian exporting market are tremendous for further integration.


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