Chinese wine buyers sample Italian wines at a wine expo in Shanghai. China is on its way to becoming the world's fastest-growing wine market with growth in consumption seen far outstripping global rates, according to the study commissioned by France-based wine trade show organisers Vinexpo. [AFP]

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

China, 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 the study commissioned by France-based wine trade show organisers Vinexpo.

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

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

Related readings: China targeted in sparkling push Blind wine tasting and quiz Trade: French wine import to rise 60%

Wine sales in China by 2010 should reach 1.65 billion dollars, about double the 2001 number of 848 million dollars, with much of the growth coming from bottles of wine priced at over five dollars per bottle, it said.

China's consumption in terms of revenue will still pale in comparison to global leaders like the United States, the world's largest market in 2005 with sales valued at 19.17 billion dollars.

US sales are expected to rise to 22.75 billion dollars in 2010, the report said.

France, the world's second-largest wine market, had sales valued at 8.86 billion dollars in 2005, but that will shrink to 8.7 billion dollars in 2010, the report said.

Japan is expected to remain the leading wine market in Asia, with revenues valued at 2.6 billion dollars in 2006 and expected to increase to 2.68 billion dollars 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 favorite of Chinese drinkers, with China 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 said.