Wine exports from Ningxia, a premier wine-producing region in China, have soared by 70% in the first half of 2024, driven by robust government support and active promotion efforts by local wineries.
According to Yinchuan Customs, Ningxia exported 50,500 liters of wine, valued at RMB 5.75 million (US$793,000), marking a year-on-year increase of 24.79% in volume and 70.16% in value.
Ningxia Devo Winery credited its success to participation in international exhibitions, leading to a breakthrough in the Japanese market. The winery recently shipped RMB 90,000 (US$12,413) worth of sparkling wines to Japan, as reported by Ningxia Daily.
Xige Estate, a well-known Chinese winery in Ningxia, reported a significant 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 revealed to Vino Joy News.
According to Zhang, Xige Estate’s wines are currently exported to the UK, Canada, Australia, Switzerland, Thailand, Singapore, and Hong Kong and Macau, primarily through restaurants, hotels, and retail stores. “Australian customers have placed multiple orders, which means stocks are being depleted,” Zhang added.
Ningxia’s Helan Mountain East foothill area, renowned for its premium wine production, hosts over 200 wineries, including large Chinese producers such as Changyu and Great Wall, and estates run by international drinks giants like Pernod Ricard and LVMH.
The surge in exports is attributed to Ningxia’s persistent and targeted overseas promotions. Ningxia wineries have been active participants in international events, including Vinexpo as early as 2016. At this year’s Bordeaux Wine Festival, the Ningxia Wine Commission showcased 60 wines from 15 wineries for the first time this year.
Today, the significant export growth highlights their rising global presence, thanks to relentless promotion efforts. Zhang Yanzhi emphasized the importance of consistent promotion: “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 driver in Ningxia wine’s growth in export markets. 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, previously shared with Vino Joy News, it aims to increase its percentage of exported wines from 25% to 40%.
However, some local wineries, like Feng Qing, owner of Ningxia Leirenshou Winery, advocate focusing on the domestic market first. Speaking to Vino Joy News, Feng pointed out that international orders are generally small, and fulfilling them can be time-consuming and costly. He pointed out, “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.”
On the high export growth rate of 70.16%, he believes this is due to the small base, so such a high growth rate is quite normal.
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