Demand for Australian wine goes to GROW despite evil trade attack in China brings in 212 per cent tariffs – but there is an unexpected turnaround
- London-based GlobalData expects the Australian wine industry to grow by 2024
- This was expected to happen despite 212 per cent import tariffs on wine
- The key to recovery is in Australia, especially wine drinkers aged 20 to 34
Australia’s wine industry is expected to grow in the coming years despite China’s penal trade war.
GlobalData, a London-based data analysis agency, estimates that Australia’s grape growth sector would grow 2.4 per cent annually for the next four years.
The Australian wine industry was expected to be worth $ 12.7billion in 2024, up 12.4 per cent from $ 11.3billion in 2019, and sour wine sales in particular were expected to grow.
This is expected to happen even though at the end of November China imposed tariffs of 107 per cent to 212 per cent on Australian wine.
The Australian wine industry is expected to grow in the coming years despite punitive tariffs of 212 percent in China. GlobalData, a London-based data analysis agency, estimates that Australia’s grape growth sector would grow 2.4 per cent annually for the next four years. Pictured is Australian wine in Shanghai
The Chinese Ministry of Commerce described the import taxes as ‘security investments against dumping’.
High-quality Penfolds Grange maker Treasure Wine Estates has been hit hard by Chinese sanctions on Australia, in retaliation by Prime Minister Scott Morrison in April calling for an initial investigation Covid.
Nevertheless, Sanchi Agarwal, consumer analyst at GlobalData, said Australians ’taste in finely made wine would be locally enough to boost the grape sector.
‘Favorable economic conditions for wine production combined with the willingness of Australian consumers to spend more on high-end wine products dominate the Australian wine sector,’ she said.
Young wine drinkers aged between 20 and 34 were seen as a key way to revive the Australian wine industry as Covid was banned.
‘Millennials are an important part of consumers because they see eating wine as an important part of social life while spending quality time with family and friends,’ Ms Agarwal said.
Nevertheless, Sanchi Agarwal, consumer analyst at GlobalData, said Australians ’taste in finely-made wine would be locally enough to boost the grape sector.
Australians, at least, value good wine unlike the Global Times, the propaganda website of the Communist Party of China, which strangely stated that Chinese consumers did not buy only Australian wine because he was ‘free’.
That’s despite the fact that bottles of Grange Hermitage sell for thousands of dollars, according to the old days.
However, GlobalData expected China’s wine sector to experience mixed annual growth of 14.7 percent, when 2019 compared to 2024, as more middle-class Chinese consumers valued a good fall.
GlobalData expected China’s wine share to experience mixed annual growth of 14.7 percent, when 2019 compared to 2024, as more middle-class Chinese consumers valued a good fall. China’s tariffs could also be designed to drown out Australian competition. Pictured are labels of Australian wine in Shanghai
‘The growth in China’s wine sector is driven by the growing disposable income coupled with the upward trend due to growing consumer preference for quality over quantity, said Ms Agarwal.
Chinese tariffs could also be designed to drown out Australian competition as the Communist Party seeks to build a local grape-growing industry.
Despite China’s trade sanctions, Australia’s annual exports to China in November were just half a percent weaker compared to October, falling from $ 146.6billion to $ 145.8billion.
Most of that was iron ore, with continued annual exports of this commodity used to make steel last month, hitting a record high of $ 139.1billion, initial Bureau of Statistics Australian trade data showed.