Organic Wine in China

New Trend for Organic Wine in China

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As a result of culture and fashion, organic wine has grown in popularity in a number of countries. In recent years, an increase in people’s consumption consciousness and the concept of health has led to a growth in the organic foods and drinks industry. As citizens pay more attention to environment and health, an organic concept has gradually expanded to consumer markets. Following the recovery of the economy, the organic wine industry is set to boom in the years to come.

The Chinese Wine Market

From 2009 to 2014, there has been a global consumption of over 317 billion bottles of wine, showing an increase of 2.7%. From 2014 to 2018, this number is expected to decrease to 1%. In the next five years, China will have 37 million people reach the legal drinking age of 18, this will translate into 37 million potential new customers. This is more than the entire population of Canada. French wines used to dominate the market share or wine producers, however, this is falling as more people are trying to expand their current tastes in wine.

 

More & more E-commerce platforms

Wine market in China The E-commerce platform has developed fast in China, such as Alibaba and Jingdong. According to Jingdong’s data, the wine industry has just over a 50% growth rate. However, with wine costing in the region of 40-60 yuan it is difficult to sell online. However, as Chinas online network has developed rapidly, offline ordering may have serious competition with online. Online alcohol shopping has developed rapidly and has become one of the mainstream shopping channels. In 2013, the number of network consumers reached 310 million. This number increased to 356 million in 2014. These numbers speak volumes, as China has grown to become the largest e-commerce market country in the world.

Young people have rather different consumption patterns, with most paying more attention to cost performance. 20-40-year-old females are the main forces behind the consumption of wine. This number is higher than for male consumers, with a small amount of wine being more popular.

A few years ago, only higher classes would consume wine as it is considered to be a high-grade luxury consumption. Whereas now, a lot of wine drinking has emerged into the second-tier cities, and wine marketing is already deep into the third-tier cities, such as Zhejiang, Fujian and other coastal provinces. Organic wines are no longer so ‘mysterious’ and unattainable to Chinese people. In the next three to five years, forecasts show wine will become far more popular in China.

Chinese people acceptance for Organic Wine

The Chinese are very attentive to their bodies, they are conscious of what they eat, they love healthy food. This is part of their culture with the Chinese medicine, the Taichi, the virtues ginger and ginseng. Plus, Chinese people like to drink warm water rather than fresh because it is better suited to the ambient temperature of the body. Therefore, the only word “natural” for organic wine could convince the Chinese to buy this type of wine. Only mentioning that a lot of pesticides are used in traditional viticulture, is enough to persuade the Chinese people. They will at least have that candid curiosity and the incredible spirit of openness that will give them the chance to test and enjoy organic wine.

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marketing research china
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