South African wines have not been widely sold in China until recently, especially when compared with wines from Australia, Chile, France and Italy. The gradual withdrawal of Australian wine merchants in China has brought new opportunities for South African wine producers , Including small and boutique brands.
Until the end of last year, Australian wine has dominated the Chinese market. But in November 2020, Australian wines were hit hard. According to official figures, by the end of September, the number of Australian exporters shipping wine to mainland China fell to 750 from 2,241 a year ago. Over the past 12 months, exports of Chinese wine have dropped by 77%.
Importers from wine producing countries such as South Africa and Chile have been vying for Australia's original market share, and because of free trade agreement with China, Chilean wine is one of the most affordable wines in China.
From January to June this year, China's wine imports from South Africa jumped by 192.8%, which is the largest increase in all countries compared with the same period last year.
At the China-Africa Economic and Trade Fair held in Hunan Province at the end of last month, an exhibitor said: “South Africa has a lot of high-quality wines. It is comparable to the famous wine producers in Bordeaux, France.”
Major wine producing countries such as France, Chile, Italy, Spain and Argentina have all increased their market share in China this year. According to data released by the China Wine and Spirits Import and Export Association, France replaced Australia with 42% of the market share in the first place, followed by Chile (20%), Italy (10%) and Spain (9%). while Australia's market share has dropped significantly from 40% in the same period last year to only 7%.
The China sales manager of South African wine and spirits producer KWV said that South Africa's wine exports to China in 2021 may reach as high as 35 million U.S. dollars, and the total export volume may increase to 100 million U.S. dollars within three to five years. According to data from the South African Wine Association, South Africa exported 288 million rand (19.6 million US dollars) worth of wine to China in 2020.