Penglai wineries at international trade fairs

China’s Penglai wine region in Shandong province is stepping up its push into overseas markets, with exports growing rapidly in recent years as domestic wine consumption remains under pressure.

Over the past three years, wineries in the coastal region exported a total of 176,000 litres of wine, recording an average annual growth rate of 118.76%, according to data released by the Penglai District government in Yantai.

Through collective participation in international trade fairs and industry exchanges, the region has continued to expand its presence overseas. Today, Penglai wines have reached more than 20 countries and regions, including South Korea, Japan, Singapore, France, Thailand, Canada and the United States. The number of exporting wineries has steadily increased, while overseas distribution channels and international brand awareness have gradually strengthened.

Located within the core area of the Yantai wine region, Penglai is one of the few coastal wine-producing areas in China. Influenced by the maritime climate of both the Bohai Sea and the Yellow Sea, the region experiences relatively mild winters, humid summers and moderate day–night temperature variation, providing stable natural conditions for wine grape ripening.

Official data shows that Penglai currently has around 80,000 mu (approximately 5,300 hectares) of wine grape vineyards. The region hosts more than 30 wine producers with an annual production capacity of roughly 140,000 kilolitres. In recent years, the rise of boutique winery models has attracted both domestic and international investment, including projects such as Great Wall Wine (COFCO), Longting Vineyard, and Domaine de Long Dai.

As a winery invested and built in China by the Domaines Barons de Rothschild (Lafite) group, Long Dai is widely seen as one of the leading examples of the Penglai region’s push into international markets, benefiting from the global influence of the Lafite brand.

Longdai (picture: DBR Lafite)

According to Charles Treutenaere, general manager of Long Dai, exports currently account for about 15% of the winery’s sales, he told Vino Joy News.

“Long Dai wines have already entered markets including Hong Kong, Macau, Japan, South Korea and Singapore, and through distributors in Hong Kong they are also sold into other Southeast Asian markets,” Treutenaere said.

“In markets such as Hong Kong, Macau and Singapore, we organise tasting events where Long Dai wines are presented alongside other prestigious estates from the Lafite portfolio,” he added. “This helps introduce consumers to Lafite’s Chinese wines and gradually open up sales channels.”

Selling into mature wine markets

The region’s export momentum extends beyond this flagship estate. 

Longting Vineyard, founded in 2009, officially released its wines in 2019. Although still a relatively young brand, its products have already entered several overseas markets.

Lu Xuemei, General Manager of Longting’s Global Brand and E-commerce Division, told Vino Joy News that the winery’s export markets currently include the United Kingdom, Switzerland, Singapore, Hong Kong and Macau.

“Export markets provide Longting with broader development opportunities and have become a new engine of growth,” Lu said. “At the same time, they significantly enhance the brand’s international image and in turn help drive expansion in the domestic market.”

She noted that most of Longting’s overseas markets are mature wine-consuming regions, where consumers maintain stable drinking habits and are more willing to explore new wine regions and flavour profiles.

“The coastal style of Longting wines and our distinctive grape varieties happen to align well with that demand,” she said.

Among its export offerings, Longting Reserve Sea Breeze Petit Manseng Dry White has stood out in particular.

“This wine uses Petit Manseng, traditionally associated with sweet wines, but we vinify it into a dry style. It has intense aromatics, layered complexity and a distinctive mineral character linked to its coastal origin. It also pairs particularly well with seafood, which has helped it gain positive feedback in overseas markets,” Lu explained.

She added that Longting Lan Marselan has also been well received internationally.

“Its elegant style and silky tannins align with current aesthetic preferences in the global wine market, making it another highlight among our export wines.”

A strategic shift during the pandemic

Another Penglai winery active in export markets is Mystic Island Winery, founded in 2008. Its wines were also released in 2019, but the launch coincided with the outbreak of the COVID-19 pandemic, forcing the winery to adjust its original market strategy.

In response, its owners Hong Kong-based investors Gong Guoquan (KC) and Zhang Lihui (Rita) quickly shifted their focus from mainland China to the Hong Kong market.

Leveraging their familiarity with Hong Kong’s market environment, the winery used the city as a strategic hub to gradually expand into other markets, opening new export channels.

Today, Mystic Island wines are available in Hong Kong, Macau and Singapore. Zhang said the winery’s export volume in 2025 increased by around 45% compared with 2024.

Brand recognition remains the key hurdle

Despite these advances, Zhang acknowledged that Chinese boutique wines still face multiple challenges in overseas markets.

She pointed out that for Penglai wines—and Chinese premium boutique wineries more broadly—brand recognition, price competitiveness and production scale remain key constraints.

“In recent years, the quality of Chinese wines has steadily improved. But the industry started relatively late, and our presence in international markets is still limited,” she said. “Brand awareness remains low, and it takes time for the market to understand and accept these wines.”

At the same time, boutique wineries typically operate with small-scale, meticulous production models, which means output volumes remain relatively limited—adding further challenges to international expansion.

Lu echoed a similar sentiment. As a young winery, Longting has yet to establish strong brand recognition overseas, and some consumers remain price-sensitive when encountering the wines for the first time.

“How to effectively communicate brand value and build trust in the market will be key to further expanding internationally,” she said.