China’s wine imports continue to slump in the first eight months of the year, dropping by 16.2% year on year in terms of value, with August downtown deepens, casting shadows for the upcoming holiday season.
From January to August this year, China’s wine imports failed to show signs of recovery as the downward trend continues for eight straight months, following last year’s drop in overall volume.
According to the latest data released by China Association for Imports and Exports of Wine and Spirits, the country’s imports suffered a 12.32% drop in volume to 419.8 million litres and another 16.32% to US$1.68 billion during the first eight months of the year compared with the same period last year.
For the month of August, the association notes that its downward deepens to double-digit drop following July’s single-digit fall, which is not boding well for the coming holiday season.
Recovery in the coming months for the mainland wine market is becoming less likely amid slowing economy. The country’s weakening economy is again compounded by on-going trade war with the US and domestic problems such as local debts.
The slowing economic growth will likely encourage cautious spending among consumers, which in return will undercut demand for wine, which is not considered a necessity.
As previously reported by Vino-joy.com, the country’s tepid wine market performance has already put over 2,000 bottled wine importers out of business within the first five months of the year.
Across the border in Hong Kong, wine market is also facing headwinds. With months of anti-government protests, hotels and restaurants reported low occupancy rate and slow business, directly impacting on-trade wine suppliers.
Retail wine shops suffered as well when clashes broke out in commercial and business centers, forcing shopping malls, shops and restaurants to close for safety.
Earlier SCMP reported, over 200 restaurants in the city went out of business amid protests and tourist downturn.
Hong Kong Tourism Board also for the first time cancelled its Wine & Dine Festival since its inception in 2009 for fear of city-wide protests.
There are about 17,700 organisations providing food and drink services in Hong Kong last year, employing roughly 250,000 people.