China and Australia will drive renewed growth in Asia Pacific region in next three years
Australia and China will spearhead a period of recovery for the value of still and sparkling wine in the Asia Pacific markets, following declining sales in the region since 2018, according to a forecast from Vinexpo/IWSR.
China is predicted to lead the way, with CAGR of nearly 4% to 2023, bringing the total value of the region’s sales of still and sparkling wines to over $34bn. By 2023 China alone is forecast to reach a value of almost $18bn, up from $14.8bn in 2018, while Australia will increae from $5.5bn to $5.6bn.
Still wine currently accounts for the vast bulk – 95% - of volume in the region, of which China holds a 55% volume and 48% value share, while Australia in second place accounts for 20% and 15% respectively.
Sparkling wine sales are being driven by Champagne and Prosecco, and total value has risen “consistently” over the decades with further room for growth, predicted to hit over $3.6bn within three years according to the research. The biggest market for sparkling wine in the region remains Australia, in front of Japan, China, New Zealand and South Korea. However, in the next three years Vinexpo/ IWSR predicts that China’s growth is likely to outstrip the competition.