Much to cheer about in wine market

The cork has been popped, flooding China with wine like never before and making it Asia's No 1 consumer of the beverage.

Chinese imbibed 899.68 million bottles in 2008. By 2013, the figure is expected to reach 1.26 billion bottles, or about one bottle a year per drinking-aged person, market research company International Wine and Spirit Record (IWSR) says.

The country ranks eighth in worldwide consumption and became the fastest growing market in 2008. Wine sales surged by 80 percent between 2004 and 2008, and are expected to increase 31.58 percent between 2009 and 2013, a recent IWSR report says.

Robert Beynat, executive director of Vinexpo Asia-Pacific 2010, which will run in Hong Kong from May 25 to 27, announced the research results at a news conference organized by food marketing consulting company Sopexa.

China is also the world's 10th biggest wine producer, with domestic brands accounting for 88 percent of its consumption. Chinese purchases of homegrown varieties increased 67 percent from 2004-2008, IWSR says.

Consumption of imported brands increased fourfold from 2004-2008. France is the biggest exporter to China, while Australia ranks second. Italy has become the fifth after a 539 percent increase over the past five years, the study found.

Currently, 88 percent of Chinese consumption is of red wine. But white varieties are expected to account for about 42 percent from 2009-2013, as more women develop a taste for the beverage, the report says.

Most bottles purchased in China cost less than $5. But consumption of more expensive types is expected to increase by 42 percent over the next five years. By 2015, Chinese will drink an estimated 7.7 million bottles of wine priced at more than $10 annually, IWSR says.

The report also points out that China is the world's No 1 consumer of spirits, with domestic brands accounting for 99.3 percent of sales.

China and the rest of Asia have become the engines driving increased global consumption, with the continent accounting for 6.6 percent of the world's total, IWSR says.

About 750 business institutions from more than 30 countries will attend the 8th Vinexpo in Hong Kong, with France enjoying the largest presence, Beynat says.

China's Dynasty Fine Wines and Dragonet will also showcase their wares at the event.