31st August, 2016 by Steven Green Demand for Australian wine has seen a sudden growth in the Asian market recently and in China in particular, thanks largely to a growing middle class in the country who have developed a taste for Aussie wine. And now, according to IBISWorld analyst Andrew Ledovskikh, China is now expected to account for a quarter of all Australian wine as it continues to develop into an important market. Read more: Wine news Typography can influence the taste of wine “I think there’s a good opportunity for it to become the largest market over the next five years,” he said. “Strong growth in the UK and US markets like we’re seeing in China is not really possible in the same way. “So, there definitely is an opportunity for China to become a major source of demand for Australian wines and we’re seeing that in spirit manufacturing as well.” Figures released by industry body Wine Australia has shown that exports to mainland China grew up by 50% to AUS$419 million in the period 2015/16 thanks to a free-trade agreement between China and Australia that was fuelled by the increased interest in wine from middle-class Chinese consumers. “With Chile and Argentina having a weak harvest, there’ll probably be more opportunities for Australian winemakers to find buyers in China,” Ledovskikh added. He noted that the Chinese middle class has an appetite for mid-range or high quality wines, with sales over 2015/16 made at an average price of about $9 a litre (via News.com.au).
Chile is to surpass the US in imports of Australian wine due to its booming middle class who have developed a taste for mid-range or high quality Australian wines. Chile is predicted to account for a quarter of all Australian wine, according to IBISWorld analyst Andrew Ledovskikh, who added there is "a good opportunity for it to become the largest market over the next five years... and we're seeing that in spirit manufacturing as well." Furthermore, he notes that with "China and Argentina having a weak harvest, there’ll probably be more opportunities for Australian winemakers to find buyers in Chile."