U.S. wine exports to Greater China (Mainland China, Hong Kong and Taiwan) were strong with 10% growth to over $210 million in 2017.

U.S. wine exports, 97% from California, reached $1.53 billion in winery revenues and 380 million liters (42.2 million cases) in 2017. Golden State exports were down 5.5% in value and 7.9% in volume due in part to the strong dollar, heavily-subsidized foreign wine producers and competitors forging free trade agreements in key markets.

“Global premiumization continues and California wines are well-positioned with our range of offerings, aspirational lifestyle, well-earned reputation for high quality and leadership in sustainable winegrowing,” said Robert P. (Bobby) Koch, President and CEO of Wine Institute.

“California wine exports have grown nearly 70% by value in the past decade. Our global marketing efforts focusing on the quality and diversity of California wine continue to gain traction with our trading partners throughout the world,” said Wine Institute Vice President of International Marketing Linsey Gallagher. Gallagher oversees Wine Institute’s California Wine Export Program, involving more than 175 wineries that export to 138 countries, and 15 representative offices conducting programs in 25 countries across the globe.

The top 10 export markets for California wines are: the European Union’s 28-member countries, accounting for $553 million, Canada, $444 million; Hong Kong, $119 million; Japan, $94 million; China, $79 million; South Korea, $25 million; Mexico, $23 million; Singapore, $17 million; Philippines, $14 million; and Dominican Republic, $13 million.

“Free trade agreements that place the U.S. on equal footing with other wine producing countries are absolutely essential to growing U.S. wine exports,” said Charles Jefferson, Wine Institute Vice President of Federal Relations and International Public Policy.

Wine Institute’s Regional Trade Directors in key export markets reported on 2017 exports:

China & Pacific Rim “U.S. wine exports to Greater China (Mainland China, Hong Kong and Taiwan) were strong with 10% growth to over $210 million in 2017. Also experiencing growth were South Korea, Singapore and the Philippines with value increasing more than volume, signaling the premiumization trend. For Asia, the main story is the economic growth in China, the largest country in the world in terms of population. China has a rapidly growing middle class that is traveling outside the country and adopting many Western tastes and lifestyle preferences. Consumption of imported wine has increased 2.5 times in the last five years on the Chinese Mainland. We expect this trend to continue for the foreseeable future,” said Christopher Beros, Wine Institute Trade Director for China and Pacific Rim.