Wednesday, May 09, 2007

India & China: wine consumption to rise

I have posted a few times regarding the economic boom that China and India will bring to bear on the future world wine industry, and the economic news continues to reinforce that idea.
Below, I've included links to several articles which speak to this topic - and after reading, may just persuade you to pick up a few courses on "How to Speak Cantonese" or Hindi...

The recent news points to the day in the future - maybe near 2024 (a year of the Dragon) - when China and India will make up quite a large bloc of the consumer market (India predicted to be fifth largest consumer nation by that time, and if China plays it's cards right, Beijing might take a spot in the top five also. And with plenty of banking infrastructure (4 out of the top 50 largest banks in the world are Chinese institutions in Beijing already), will probably have no trouble continuing to fund it's massive growth rate...

Anyways, I've digressed a little: what's this all mean for the wine industry? Plenty...

Asian nations are already smitten with the trappings of traditional Western success and status, most notably wine. One interesting article points out that in China, well-to-do entrepreneurs seek out high priced wines and serve them at various functions - even if they don't like them and they don't match with the cuisine (this applies all the way up to State sponsored functions).
Olivia Wu (5/7/07) stated that Cab Sauvignon is the most popular varietal in China due to the impression that "it is the most revered of the noble varieties". She also noted that much of the wine consumed in China (this is true for India as well) is mixed with soft drinks as a sort of ad hoc wine cooler - which I have pointed out before. Obviously, this would change the Cab quite a bit, and the lessened tannic profile and increased sweetness would help the wine pair with the local cuisine, which often tends towards spicy and sweet characters.

Looking at the numbers for their population, the future is obvious: China has roughly 1.314 Billion people, of which 20.8% are under the age of 15, and India has a population of 1.112 Billion, 32.1% of which are 15 or under! Talk about a large influx of potential consumers!!!

The links:
Aussie exports to China now at 164% of last 12 months (China still roughly 10% of Aussie-US export volume)
Michel Rolland working with wine in Bangalore
Luxury brands ignite interest in the Chinese market ("I'm drinking increasingly expensive stuff. At first only 100 or 200 yuan a bottle, but now up to 1,000 yuan [~$130 US/btl]," said the smartly dressed businessman...)
China to replace US as World's most important economy
India to become fifth-largest consumer economy by 2025
Indian Middle-Class ready to burst forth

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2 Comments:

Anonymous marisa d'vari said...

Great job with the links! I listed your blog and a short excerpt at http://www.AWineStory.com

May 10, 2007 7:16 AM  
Blogger bertelle said...

Hi,
This article about indian wine is very interesting.
If you want to discover others great informations about indians wines, you can
fell free to visit the following website Indians-Wines.com
I will take time now to read others post on this great blog ;-)
Remember dont drink too much wine if you dont want authorities delete it from market :-)

June 15, 2008 9:59 AM  

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