Wine exports from Ningxia, one of China’s leading wine-producing regions, experienced a remarkable 70% surge in the first half of 2024, fueled by strong government support and active promotional efforts by local wineries.
According to data from Yinchuan Customs, Ningxia exported 50,500 liters of wine, valued at RMB 5.75 million (US$793,000). This represents a year-on-year increase of 24.79% in volume and 70.16% in value.
Ningxia Devo Winery attributed its success to participation in international exhibitions, which led to a significant breakthrough in the Japanese market. The winery recently shipped sparkling wines worth RMB 90,000 (US$12,413) to Japan, as reported by Ningxia Daily.
Xige Estate, a prominent Chinese winery in Ningxia, reported a substantial boost in export volume. “Xige Estate’s exports increased by more than 100% in the first half of this year, accounting for over 60% of Ningxia’s total export volume,” owner Zhang Yanzhi told Vino Joy News. Xige Estate’s wines are exported to the UK, Canada, Australia, Switzerland, Thailand, Singapore, and Hong Kong and Macau, primarily through restaurants, hotels, and retail stores. Zhang noted that “Australian customers have placed multiple orders, which means stocks are being depleted.”
Ningxia’s Helan Mountain East foothill area, renowned for its premium wine production, hosts over 200 wineries, including large Chinese producers like Changyu and Great Wall, and estates run by international drinks giants such as Pernod Ricard and LVMH.
The surge in exports can be attributed to Ningxia’s persistent and targeted overseas promotional activities. Ningxia wineries have been active participants in international events, including Vinexpo since 2016. This year, at the Bordeaux Wine Festival, the Ningxia Wine Commission showcased 60 wines from 15 wineries for the first time.
The significant export growth underscores the rising global presence of Ningxia wines, a result of relentless promotional efforts. Zhang Yanzhi emphasized the importance of consistent promotion, stating, “Since Xige Estate’s establishment, we have set up an export department and actively participated in professional wine exhibitions worldwide, building a substantial overseas network. Our brand has matured, leading to improved export performance.”
Silver Heights, China’s first Demeter-certified biodynamic winery, is another key player in Ningxia’s export growth. In 2020, the winery exported RMB 1.64 million worth of wine, accounting for 61.88% of Ningxia’s total exports. Marco Milani, CEO of Silver Heights, shared with Vino Joy News that the winery aims to increase its export percentage from 25% to 40%.
However, some local wineries, like Ningxia Leirenshou Winery, advocate focusing on the domestic market first. Feng Qing, the owner, highlighted that international orders are often small and fulfilling them can be time-consuming and costly. “From the perspective of brand development and corporate profitability, each company has its own demands. In the case of my winery, fulfilling some small export orders requires us to reorganize our workflow and logistics, which incurs high time costs,” Feng explained.
Regarding the high export growth rate of 70.16%, Feng believes this is due to the small base, making such a high growth rate quite normal.
