China’s wine industry made significant strides in 2023, with exports to Japan skyrocketing by 255%, according to trade data from Japan’s Ministry of Finance.
The value of these imports also surged by 189%, indicating not just an increase in volume but also growing appreciation for the quality of Chinese wines in the Japanese market. This remarkable growth underscores a shift in Japan’s wine landscape, where Chinese wines are carving out a niche among a quality-conscious audience.
Strategic Expansion into Japan’s Wine Market
In recent years, several Chinese wineries have turned their focus toward international markets, initially targeting regions with significant Chinese populations, such as Hong Kong, Macau, and Singapore. However, Japan has now emerged as a key destination for Chinese wines. From January to August 2023, the volume of bottled Chinese wine (in containers of 2 liters or less) exported to Japan reached 37,296 liters, marking a 117.84% increase compared to the same period in the previous year. The export value also climbed 22.16% year-on-year to USD 343,900, cementing Japan’s position as the fifth-largest market for Chinese wine exports, following Hong Kong, France, Macau, and Australia.
This expansion has been driven by several factors. Wineries in China, particularly from regions like Ningxia, have been gaining international recognition for their premium offerings, with several notable successes in export markets. China’s Ministry of Finance data shows that Japan is increasingly becoming a receptive market for these wines, which are finding favor in high-end restaurants and luxury hotels.
Silver Heights: A Chinese Pioneer in Japan
One of the most prominent success stories in Japan is Silver Heights, a winery located in Ningxia, known for being the first Chinese winery to receive bio-dynamic certification from Demeter. Silver Heights has been exporting to Japan for the past five years, working through its local partner, Kota Kudo, the owner of Koalaya. Their wines have penetrated the luxury sector, with listings at prestigious venues such as the Mandarin Oriental, Conrad Tokyo, Edition Totanomon, Aman Group hotels, and Michelin-starred restaurant Ryuzu.
According to Marco Milani, CEO of Silver Heights, the winery’s flagship wines, The Summit and Jiayuan Collection, have garnered considerable success in Japan. He attributes this to Japan’s discerning wine professionals, who see Chinese wine as a novelty and are curious to explore new, high-quality products. “For wine experts in Japan, Chinese wine is a novelty worth trying,” Milani said, while also stressing the importance of maintaining quality in such a demanding market. “If a producer can offer clean, high-quality wine, Japan is the place to be,” he added.
Chinese Wines Gain Traction Despite Domestic Market Challenges
China’s burgeoning success abroad is a bright spot for its wine industry, which faces challenges domestically. According to data from Vino Joy News, Ningxia’s wine exports jumped by 70.16% in the first half of 2024, signaling that Chinese wines are beginning to attract international attention, even as the domestic market faces a downturn. Wineries like Silver Heights are leading the charge, but they are not alone—several other premium Chinese wines have made significant strides in the global market, albeit with smaller export volumes.
Shen Yi, a wine industry professional, sees this as a positive trend. “The international wine market is less saturated than China’s. As a new wine region, if the product is of decent quality, local wine enthusiasts are willing to give it a try. This presents opportunities for many premium Chinese wineries,” he noted. However, Shen tempered this optimism by pointing out that while some wineries are gaining a foothold abroad, the overall sales volumes remain modest. “Many wineries are just selling a few bottles to restaurants and hotels overseas. It helps with brand recognition, but the volumes are still modest,” he explained.
Focus on Quality and Strategy for Future Growth
Despite the encouraging export growth, the general consensus remains that China’s domestic market will continue to be the primary focus for its wineries. As Milani remarked, “Our strategy is to stay humble and focus on quality. China will always be our first market, but yes, exports are increasing.”
The success in Japan shows that Chinese wines have the potential to succeed in quality-driven international markets, provided the focus remains on delivering a high-quality product. As Japan ranks as the fifth-largest market for Chinese wine exports, there is room for further growth, particularly in premium segments such as luxury hotels and Michelin-starred restaurants. The strong performance in Japan, alongside other key markets, offers a glimpse into the evolving global presence of Chinese wine, though substantial hurdles remain in gaining mainstream acceptance.
Source: Vino-Joy