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China is on its way to becoming the world's fastest-growing wine market with growth in consumption far outstripping global rates.

The country, ranked as the world's 10th-largest light wine consuming nation in 2005, will drink 558 million liters (145 million gallons) in 2010, according to a study commissioned by the French wine trade show organizers Vinexpo.

That represents growth of 36 percent over 2005 levels compared to an expected world increase of 4.8 percent, said Vinexpo.

Chinese consumption grew from 335 million liters in 2001 to 410 million in 2005. This puts the economically-booming country on course to overtake Romania as the world's ninth-largest wine market by 2010, said the trade show organizers. 

They added that by 2010 wine sales in China should reach US$1.65 billion. This is about double the 2001 figure of US$848 million. Much of the growth is coming from bottles of wine priced at over US$5 per bottle, Vinexpo said.

China's consumption in terms of revenue still pales in comparison to global leaders like the United States (US) home to the world's largest market in 2005 with sales valued at US$19.17 billion. US sales are expected to rise to US$22.75 billion in 2010, the report said.

France, the world's second-largest wine market, had sales valued at US$8.86 billion in 2005 but that'll shrink to US$8.7 billion  in 2010, says the report. 

Japan is expected to remain the leading wine market in Asia with sales valued at US$2.6 billion in 2006 and expected to increase to US$2.68 billion in 2010.

China's growth will largely benefit local vintners who are developing strong brands like Dynasty and Great Wall but imports are also expected to rise, said Robert Beynat, the director general of Vinexpo. "Of course, China consumes its own wines, but the volume of imported wines is expected to grow by 53 percent between 2005 and 2010," Beynat said.

Imported wines made up only 5.6 percent of the Chinese market or some 23.7 million liters in 2005, he said.

Cognac will also continue to be a growing favorite of Chinese drinkers with the country expected to become the world's second-biggest market for the drink in 2010 moving up one spot from its current third place, the report predicted.

(China Daily January 17, 2007)