Demand for Australian wine is GROWING despite a nasty Chinese trade attack involving 212 percent tariffs – but there is an unexpected turnaround
- London-based GlobalData expects the growth of the Australian wine industry by 2024
- This was expected to happen despite Chinese import duties on wine at 212 percent
- The key to reviving lies in Australia, especially for those who drink wine between the ages of 20 and 34
The Australian wine industry is expected to grow in the coming years despite China’s criminal trade war.
GlobalData, a London-based data analysis group, predicts that the Australian grape growing sector will enjoy 2.4 percent annual growth over the next four years.
The Australian wine industry was expected to be worth $ 12.7 billion in 2024, up 12.4 percent from $ 11.3 billion in 2019, with the popularity of sparkling wine in particular increasing.
That will happen even though China introduced tariffs of 107 to 212 percent on Australian wine at the end of November.
The Australian wine industry is expected to grow in the coming years despite penalties of 212 per cent in China. GlobalData, a London-based data analytics group, predicts that the Australian grape growing sector will grow by 2.4 percent over the next four years. Pictured is Australian wine in Shanghai
The Chinese Ministry of Trade described the import tax as an “anti-dumping deposit”.
Like Treasury Wine Estates, the maker of high-quality Penfolds Grange, they have been hit hard by Chinese sanctions against Australia, in retaliation against Prime Minister Scott Morrison in April by calling for an investigation into Covid’s origins.
Nonetheless, Sanchi Agarwal, a consumer analyst at GlobalDati, said the Australian flavor in locally produced fine wine would be enough to strengthen the grape sector.
‘Favorable economic conditions for wine production, together with the willingness of Australian consumers to spend more on premium wine products, are driving the Australian wine sector,’ she said.
Young wine drinkers between the ages of 20 and 34 were seen as the key to reviving the Australian wine industry as Covid’s restrictions were relaxed.
“Millennials form a vital segment of consumers because they perceive wine consumption as an important part of social life, while spending quality time with family and friends,” Ms Agarwal said.
Nonetheless, Sanchi Agarwal, a consumer analyst at GlobalDati, said Australians ’taste of locally produced fine wine would be enough to boost the grape sector
Australians at least appreciate fine wine unlike the Global Times, a propaganda website of the Chinese Communist Party, which bizarrely claimed that Chinese consumers bought Australian wine just because it was “cheap”.
That’s despite bottles of Grange Hermitage selling for thousands of dollars, depending on the vintage.
Still, GlobalData expected the Chinese wine sector to achieve annual growth of 14.7 percent, when 2019 was compared to 2024, as more Chinese middle-class consumers appreciated the good decline.
GlobalData expected the Chinese wine sector to achieve annual growth of 14.7 percent, when 2019 was compared to 2024, as more Chinese middle-class consumers appreciated the good decline. Chinese tariffs could also be designed to stifle Australian competition. Pictured are Australian wine labels in Shanghai
“Growth in the Chinese wine sector has been driven by increasing disposable income, along with a growing premium trend thanks to consumers’ growing propensity for quality over quantity, ”Agarwal said.
Chinese tariffs could also be designed to stifle Australian competition as the Communist Party tries to build a local grape growing industry.
Despite Chinese trade sanctions, Australia’s annual exports to China in November were only half a percent weaker than in October, falling from $ 146.6 billion to $ 145.8 billion.
The majority of that was iron ore, and the annual export of this goods, which is used for the production of steel, reached a record 139.1 billion dollars last month, according to preliminary data from the Australian Bureau of Statistics.