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VINEXPO 2008: ENORMOUS POTENTIAL FOR GROWTH IN CHINA FOR ITALIAN WINES
In 2007 Italian wine exports grew by 7.8% after a 6.5% increase in 2006. The increase in demand was particularly strong in emerging markets: +55% for a value of 15 million euros in China and +35.5% for a value of 6.6 million euros in Hong Kong. Therefore the presence of Italian wines at the next edition of the Vinexpo-Asia fair (www.vinexpo.com/en/asia-pacific-2008/) that will take place in Hong Kong from the 27th to the 29th May has a particularly high strategic value. Especially at a time when Italian producers need to regain their credibility, after the recent controversy on the processing techniques of the Brunello di Montalcino. ICE (the Italian Trace Commission) has organised an official delegation to one of the most prestigious trade fairs of the Asian region, a showcase of the latest international productions and trends in an ever more global market. ICE’s objective is to develop and consolidate trade links with the Asian region, where demand grew sharply in recent years. In February 2008 Hong Kong has announced a reduction on wine import duties, with the intention to produce an immediate result: transforming the former British colony into a mature market, a world class wine centre on par with London and New York. The 72 million dollar reduction in tax revenues should boost the local market by 500 million dollars. One must look into the future to understand the prospect for Italian wines in Asia and in the Far East in particular. According to a recent study carried out in Hong Kong, wine imports will increase on average between 10% to 20% in the next five years, peaking to 100% in some regions. The main areas for growth should be China, Hong Kong, Taiwan, South Korea and Singapore. Excluding Japan, the turnover for the wine sector in these countries should reach 130 billion Hong Kong dollars in 2012. The real boom is expected to happen in the following five years: by 2017 the market should reach the level of 210 billion Hong Kong dollars. There is another reason why China represents a sensational opportunity for Italy: pro capita consumption of wine is still low. Currently there are just over 10 million regular drinkers but the estimated potential is huge: 5% to 10% of the population, i.e. over 100 million consumers under the best scenario ready to drink 750 million bottles in 2009, which should become over 1 billion by 2011. At the same time, consumer interest grows constantly every year, especially in large cities and in the wealthier coast areas. Italian wine has all the rights characteristics to be appreciated by Chinese palates. Moreover, ‘Made in Italy’ is still a byword for quality, as confirmed by the 2007 statistics on foreign trade in wine: the growth in the value of exports (nearly +8% to 3.5 billion euros) was far greater than the increase in volumes (+1.34% to 19 billion hectolitres). It is clear evidence that the quality of exported products has risen sharply, as their average price has reached more than 1.8 euros per litre (+6.4% compared to 2006).
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