(Yicai) Dec. 6 -- Despite a steep increase in imports in October, China’s wine market is still languishing, with sales of imported and domestic labels continuing to underperform or decline.

Wine imports soared 73 percent to USD120 million in October from a year ago, according to the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce, and Animal By-Products. Industry insiders put the jump down to the return of Australian labels and year-end bulk-buying by major importers.

For the first 10 months of the year, imports climbed 30 percent to nearly USD1.28 billion from the same period last year.

China has been one of the largest importers of wine in Asia, but the market has declined in recent years. After peaking at USD2.86 billion in 2018, imports slumped 60 percent to USD1.16 billion last year, the least in nearly a decade.

Some importers are close to finishing their inventory clearance and need to replenish stocks for the traditional high season at the end of the year, Yang Zhengjian, dean of the WBO Wine Business School, told Yicai. The return of Australian wines was also a big boost, he added.

China's commerce ministry announced the end of anti-dumping and countervailing duties on imported wines from Australia on March 28. Swan Wine Group’s chairman subsequently told Yicai that Australian labels were being exported to China in large quantities.

A number of wine merchants Yicai spoke with said the current import data does not accurately reflect real changes in the market. Bottled wine imports from Chile, France, and Italy fell in the 10 months ended Oct. 31 from a year ago, with those from France alone plunging over 11 percent.

This year, the wine business has shrunk by 20 percent to 30 percent compared with previous years, and there has been no improvement as the year approaches its end, Wang Sheng, an importer based in Tianjin, told Yicai.

It is not only the import market that is in the doldrums. Major Chinese producers such as Changyu Pioneer Wine and Weilong Grape Wine saw revenue growth slow or even drop during the traditionally strong third quarter, their earnings reports showed.

Editor: Futura Costaglione