However, according to Michael Daymond-King, fine wine consultant at global wine merchant the Bordeaux Index, the report overplays concerns about a global shortage in the wine market.
(Read more: Move over Bordeaux:French premium winemakers eye China vintage)
"The [Morgan Stanley] report focuses more on the cheaper end of the wine market, priced under $20 per bottle. There are certainly less of these cheaper wines being produced in Europe, but I doubt whether it will impact prices, because there is still enough volumes coming from Australia, Chile, Argentina and New Zealand," he said.
In terms of rising demand from China, Daymond-King agreed that appetite is booming, but said in his view strong production levels within the country will compensate for much of the increased demand. Meanwhile, growing consumption levels of wine in the U.S. would be easily met by supplies from Australia, he added.
(Read more: Aglass of Meow-lot? Japan launches wine for cats)
"People forget that China is a big consumer of wine but also a big maker of wine," he said.
But the Morgan Stanley report said that although China produces 180 million cases annually, it won't be able to produce enough wine to meet domestic demand and will therefore have to import the difference.
China currently imports 20 percent of its total consumption, mainly from France.
—By CNBC's Katie Holliday: Follow her on Twitter