Wine Production in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
1524Revenue
$1.3bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
9,423
Businesses
136
Wages
$XXX.Xm
Wine Production in China industry analysis
Revenue for the Wine Production industry in China steadily increased pre-2013 alongside economic prosperity, rising household income and the gradual popularization of wine culture. These trends have helped enrich consumers' wine knowledge, stimulating wine consumption. In addition, the government has encouraged consumption of beverages with lower alcohol content, like wine. Since 2013, industry revenue has trended downward due to low industry output resulting from insufficient vineyards and Chinese consumers' drinking preference for Chinese alcohol. In 2023, industry revenue is set to decrease 8.5%, to $1.3 billion. Industry revenue is expected to fall an annualized 16.2% over the five years through 2023, due to declining demand from domestic and international markets, the impact of the COVID-19 pandemic, and the industry's low output and productivity.Industry enterprise numbers are anticipated to decrease. As more local companies extend their presence in the mid- to high-end wine market, foreign-funded enterprises' competitive advantages have diminished. Foreign winemakers account for around 15% of industry enterprises in the current year.China's consumer purchasing power is anticipated to increase steadily over the next five years, and domestic demand growth for wine is expected to be slow. Industry revenue is forecast to grow an annualized 2.8% over the five years through 2028, to $1.5 billion. However, a wine grape shortage is anticipated to become a serious issue for the industry, as China has only nine major wine grape production bases. To alleviate this problem, large enterprises will likely continue developing their own vineyards and introducing better grape varieties.
Trends and Insights
- The industry is facing many changes. Output, industry revenue and profit have steadily dropped in recent years.
- Dry red wine is the most popular wine type. Most Chinese people have had limited exposure to wine culture and are only aware of this wine type.
- Shandong province is China’s largest wine production region. It is also China’s largest wine grape production base.
- Taste, quality and brand are more important competition factors than price in the high-end wine segment. In the low- to mid-range segments, price is an important factor for domestic competition.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 16.2 % over the past five years, to reach an estimated $1.3bn in 2024.
Trends and Insights
Wine is a small alcohol segment in China
- In 2022, wine production industry only contributed 1.0% to total industry revenue of alcoholic drink industry in China. The Wine Production industry is a small segment in the alcoholic drink production sector in the domestic market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The wine production industry has great prospects
- Along with increase of people's income level, more pursuit of relaxed, romantic and healthy lifestyle, the existing consumption concept may change. Consumption trends are changing toward drinks with lower alcohol content, and wine is being accepted by an increasing number of people.
Biggest companies in the Wine Production in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Wine Production in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Dry red wine, Semi-dry wine, semi-sweet wine and sweet wine and Dry white wine. Dry red wine is the largest segment of the Wine Production in China.
Trends and Insights
Dry red wine is the most popular wine type
- Dry red wine is made by fermenting red grapes with their skins and then separating them.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Chinese Alcohol Production in China
- Beer Production in China
Complementors
- There are no industries to display.
International industries
- Global Wine Manufacturing
- Wineries in the US
- Wine Production in Australia
- Wine Production in New Zealand
- Wine Production in the UK
Table of Contents
About this industry
Industry definition
The Wine Production industry in China produces wine from grapes or grape juice. Industry products include dry red wines, dry white wines, sweet wines and specialty wines.
What's included in this industry?
Dry red wine Dry white wine Semi-dry wine, semi-sweet wine and sweet wineCompanies
Purchase this report to view all major companies in this industry.
Related Terms
DRY WINERED WINEWHITE WINESWEET WINEPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry is facing many changes. Output, industry revenue and profit have steadily dropped in recent years.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Dry red wine is the most popular wine type. Most Chinese people have had limited exposure to wine culture and are only aware of this wine type.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Shandong province is China’s largest wine production region. It is also China’s largest wine grape production base.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Taste, quality and brand are more important competition factors than price in the high-end wine segment. In the low- to mid-range segments, price is an important factor for d...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Top enterprises have accumulated brand awareness. Brand image is a critical basis of industry competition so large domestic enterprises have established and accumulated disti...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Wine producers invest significantly in production equipment and technologies. Wine production is highly mechanized and requires fewer employees than manufacturing industries.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases are the largest cost segment. Grapes are the main ingredient in wine, constituting the largest purchase item, and some large manufacturers have established their ow...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Wine Production industry in China in 2024?
The market size of the Wine Production industry in China is $1.3bn in 2024.
How many businesses are there in the Wine Production in China industry in 2024?
There are 136 businesses in the Wine Production industry in China, which has declined at a CAGR of 5.0 % between 2019 and 2024.
Has the Wine Production industry in China grown or declined over the past 5 years?
The market size of the Wine Production industry in China has been declining at a CAGR of 16.2 % between 2019 and 2024.
What is the forecast growth of the Wine Production industry in China over the next 5 years?
Over the next five years, the Wine Production industry in China is expected to grow.
What does the Wine Production in China include?
Dry red wine and Dry white wine are part of the Wine Production industry.
How competitive is the Wine Production industry in China?
The level of competition is high and increasing in the Wine Production industry in China.
