China's rank in the world's list of top wine producers may rise up in the next couple of years as the demand for wine in urban areas continues to grow, potentially creating problems for Western providers.
In 2017, China was named the world's seventh largest wine producer. The country is also the world's fifth largest wine market and unsurprisingly, the second largest country that grows grapes. Some business analysts predict that this pattern could become a threat to wineries in the West.
According to Eco-Business, younger Chinese are starting to drink more wine. Whether homegrown or imported, the demand is quickly growing and wineries in the north are starting to gain popularity.
While imported wine is also in demand these days, the real story is apparent developments some Chinese wineries. One of these is the winery in Ningxia that caught the attention of the New York Times five years ago.
At that time, the newspaper said, "In the arid mountainous region of Ningxia, some 550 miles west of Beijing, the local government has reclaimed desert-like expanses, irrigated them profusely, planted them with cabernet sauvignon and merlot and started a campaign to transform this rugged backwater into China's answer to Bordeaux."
Ningxia is China's pride in terms of wine production. It is widely known as "China's Bordeaux" and it has started gaining global attention over the years.
Furthermore, China has apparently poured money into the wine industry. Back in the 1950s, the country only had around 3,200 hectares saved for grape-planting. In data released in 2016, it was revealed that the country now has 847,000 hectares of grapes.
China's ascent into the worlds best has been attributed to technological advancements. Due to the country's advanced technologies, agriculture has become easier and trade with western regions was strengthened.
Researchers from the Chinese Meteorological Administration also revealed that climate change is allowing China to lead further in the wine industry. With temperatures rising at 0.5 to 0.8C in the last century, the country is slowly becoming a suitable location for cultivating grapes.
In mid-December, state-owned wine producer, GreatWall Winery, made a huge announcement that is further expected to thrust China to the higher ranks.
A wine forum hosted by Shenzhen's winery opened doors for the announcement to be made. China's GreatWall Winery will produce the wine that is "reflective of Chinese history and culture," The Drinks Business reported.
A couple of China's biggest trade organizations have already pledged support for this new venture. These groups include the China National Association for Liquor and Spirits Circulation, China Alcoholic Drinks Association, and more.