2019/3/4 – CRI Report

Research Report on Wine Import in China, 2019-2023

admin — Mon, 04 Mar 2019 05:32:32 +0000

Description
With the improvement of living standards and the change of lifestyle, the demand for wine in China keeps increasing. China is the fifth largest wine consumer in the world. The fixed wine consumer groups in China are no longer limited to the middle class and the well-heeled. An increasing number of young people are starting to drink wine, and some middle-aged and elderly people are becoming wine drinkers for health reasons. At official banquets and business dinners, the consumption of Chinese spirits far exceeds that of wine but the gap in market share is narrowing.
The development of e-commerce boosts wine sales in China. And consumer groups vary greatly in preference and purchasing power. The output volume and quality of domestic wine can hardly be improved, and wine making costs more in China than in other countries, which pushes up the import volume of wine in China. Many Chinese wine producers repackage imported bulk wine to produce wine of their own brands. As the Chinese government has no special restrictions on wine import, the number of wine importers in China stays above 5,000 in recent years.
According to CRI’s analysis, the import volume of wine in China reached 729.68 million liters in 2018. It decreased as compared to 2017 but increased by about 80% as compared to 2013. About 20% of China’s wine imports are bulk wine in containers holding more than 10L, and the rest are bottled wine in containers holding 10L or less. In 2018, the import value of wine in China reached USD 3.91 billion, increasing by about 6.50% as compared to 2017. France was the largest source of China’s wine imports. The value of China’s wine imports from France was about USD 1 billion in 2018, decreasing by nearly 9% YOY. Australia was the second largest source of China’s wine imports. The value of China’s wine imports from Australia was about USD 700 million in 2018, decreasing by 3.50% YOY. Chile was the third largest source of China’s wine imports. The value of China’s wine imports from Chile was about USD 340 million, increasing by 4.50% YOY. In 2018, the average import price of wine in China was lower than 6 USD/liter, which shows that China’s wine imports are mostly medium-to-low end products.
According to CRI’s market survey, there is neither well-developed wine culture nor well-known wine brands on the Chinese market. Most Chinese consumers find it difficult to identify the types and grades of wines. Therefore, low-end imported wines prevail in China. Some inferior wines are even sold at high prices by advantage of marketing techniques. China’s wine market will become standardized as consumers grow more mature and the market is better regulated. But it may take 5 to 10 years or longer. It is important for wine importers to select brands and products suitable for the Chinese market and spread consumption concept in a way acceptable to Chinese consumers.

Topics covered:
– Economic and policy environments of wine import in China
– Wine import in China from 2013 to 2018
– Major sources of China’s wine imports
– Product segments and prices of wine imports
– Major wine importers in China
– Forecasts on wine import in China from 2019 to 2023

The post Research Report on Wine Import in China, 2019-2023 first appeared on CRI Report.

Research Report on Paper and Paperboard Import in China, 2019-2023

admin — Mon, 04 Mar 2019 05:32:31 +0000

Description
According to CRI’s analysis, with the development of China’s economy and the improvement of living standards, the per capita consumption of paper and paperboard shows an upward trend. Meanwhile, China’s net annual population growth is between 8 million and 10 million, which leads to an increasing demand for paper and paperboard in China and promotes the development of China’s papermaking industry.
However, the papermaking industry is dependent on forest resources which are scarce in China. As China tightens its environmental protection policies and the forest coverage rate decreases, the fiber materials for papermaking are in increasingly short supply. Besides, the labor costs in the Chinese manufacturing sector keeps rising. Therefore, China needs to import a large quantity of paper and paperboard to cover the shortage of domestic capacity.
The Chinese government has set no administrative barriers against paper and paperboard import, e.g. making paper and paperboard exclusive to state-owned enterprises, or introducing import quota administration for paper and paperboard. But import tariffs vary greatly among China’s paper and paperboard imports. For instance, the MFN rate and general rate on the commodity that has the heaviest tax burden is respectively 35% and 100%. The import tariffs on newsprint, kraft paper, etc. are lower with the lowest MFN rate being 2%.
According to CRI’s analysis, the import volume of paper and paperboard in China is rising in recent years. It reached 6.27 million tons in 2018, increasing by 122.30% as compared to 2014. And the import value reached USD 5.53 billion, increasing by 54% as compared to 2014. The reasons for the growing paper and paperboard imports mainly include: (1) The price of imported paper and paperboard is lower than that of domestic counterparts; and (2) the quality of imported paper and paperboard is better than that of domestic counterparts. But market trends vary greatly among China’s paper and paperboard imports. Overall, product segments that have great price differences with domestic counterpart sees faster growth. For example, with the development of Intermedia, the sales volume of newspaper, magazines and other print media is decreasing in China, which brings down the demand for newsprint. However, the import volume of newsprint in China grew by 860% from 2014 to 2018 because the price of imported newsprint was far lower than that of domestic newsprint. In recent years, the demand for liner board keeps rising with the rapid development of the e-commerce and logistics industries. As the import price differed little from the domestic market price, the import volume of liner board in China grew by only 65.10% from 2013 to 2017.
CRI expects that the demand for paper and paperboard imports in China will continue to grow from 2019 to 2023. The major driving forces include the lower average price of imports than domestic counterparts and the sluggish growth in domestic production of paper and paperboard resulting from the shortage of raw materials and the upward costs of labor, land, energy resources and other production factors.

Topics Covered:
– Economic and policy environment of paper and paperboard import in China
– Paper and paperboard import in China
– Major sources of China’s paper and paperboard imports
– Analysis on average import price of paper and paperboard in China
– Major driving forces for paper and paperboard import in China from 2019 to 2023
– Forecast on paper and paperboard import in China from 2019 to 2023

Global Paper Straw Market Outlook 2030: Industry Insights & Opportunity Evaluation, 2019-2030

The post Research Report on Paper and Paperboard Import in China, 2019-2023 first appeared on CRI Report.

Research Report on Cotton Import in China, 2019-2023

admin — Mon, 04 Mar 2019 05:32:29 +0000

An updated verson of this topic: Research Report on Cotton Import in China, 2022-2030

China Cotton Import

According to CRI’s analysis, in recent years, the growth rate of China’s cotton spinning industry is slowing down and labor costs, land rent and the prices of other production factors are rising in China, which increases the costs of cotton planting and decreases the profits from and area of cotton planting.

Meanwhile, cotton production capacity is being transferred to Xinjiang from other parts of China. In 2018, the cotton planting area in China was about 3,352,000 hectares, increasing by 4.90% YOY. China is about to run out of cotton reserves and face a short supply of cotton. However, the growth of cotton planting area is restricted by land policies such as returning farmland to forest.

In particular, because of the rising labor costs of cotton planting, cotton fields in some regions have been turned into fields of other crops.

According to CRI’s analysis, the cotton output in China reached about 6.10 million tons in 2018, which increased by 7.80% YOY but was far lower than 7.60 million tons in 2008. The import volume of cotton in China reached 1,574,000 tons in 2018, increasing by 36.20% YOY. The sharp increase in the import volume was mainly attributable to the price advantage of imported cotton.

The Chinese government introduces quota administration for cotton import. It allocates tariff rate quota of 894,000 tons/year as required by the WTO. (The tariff rate on cotton in quota is only 1%, and at least 33% of the quota is reserved for state-owned enterprises.)

In Oct. 2018, it provided additional 800,000-ton sliding duty rate quota valid till Feb. 2019. (The tax rates on the cotton imports out of the tariff rate quota but in the sliding duty rate quota are in a floating range below 10%.) The tariff rates on cotton imports out of the tariff rate quota and sliding duty rate quota range from 40% to 125%, depending on the sources and varieties of cotton.

Many Chinese enterprises call on the Chinese government to cancel the quota administration for cotton import to cut import taxes. However, some state-owned enterprises firmly oppose the proposal because they benefit greatly from the quota administration. In the next few years, the quota administration will continue to exist in China.

With the escalation of the Sino-U.S. trade war, on Jun. 16, 2018, China’s State Council decided to place a 25% tariff on 659 U.S. products worth about USD 50 billion. The decision applied to USD 34 billion of U.S. exports including agricultural products, automobiles and aquatic products from Jul. 6, 2018. The tariff increase immediately affected the export of U.S. cotton to China.

Since Jun. 2018, Chinese enterprises have significantly reduced U.S. cotton orders, and Brazil have replaced China as the largest destination of U.S. cotton exports. Overall, China imported about 500,000 tons of cotton from the U.S. in 2017 while the U.S. exported 3.49 million tons of cotton in 2018.

China’s cotton imports from the U.S. took up a small proportion of U.S. cotton exports. Therefore, less orders from China had a limited impact on the export of U.S. cotton. However, in 2017, the cotton imported from the U.S. accounted for more than 40% of China’s cotton imports. In this context, the Sino-U.S. war had a great impact on cotton import in China.

According to CRI, from 2019 to 2023, the growth rate of China’s cotton spinning industry will continue to slow down. However, the domestic demand for cotton textiles will keep rising, and a large quantity of cotton textiles will be exported as usual because of price advantage. Therefore, the overall demand for cotton in China is expected to increase gradually from 2019 to 2023.

Restricted by production factors such as land rent and labor costs, cotton output in China can hardly rise and will even fall from 2019 to 2023. Therefore, the import volume of cotton in China will keep rising during this period.

Topics Covered:
– Economic and policy environments of cotton import in China
– Analysis on quota administration for cotton import in China
– Cotton import in China and major sources of China’s cotton imports from 2013 to 2018
– Analysis on major cotton importers in China
– Major driving forces and market opportunities for cotton import in China
– Forecast on Cotton Import in China, 2019-2023

The post Research Report on Cotton Import in China, 2019-2023 first appeared on CRI Report.