Chinese wine industry matures

Learning to drink wine is part of changing lifestyles across the country. And that means plenty of opportunity for local wine makers. They're upping standards to meet ever-more demanding consumers.

The coastal city of Yantai, home to over 10-thousand hectares of vineyards in Shandong Province, is regarded as China's Bordeaux by the locals. Dozens of wine companies have set up operations in the region, as domestic demand for wine surges. Some studies indicate that by 2011, Chinese drinkers are expected to down over 1.1 billion bottles of wine a year, double the figure in 2007.

More than 100 wineries have opened since 1996, and there are an estimated 500 vineyards across China. Many local producers are developing higher quality products to tap into the increased purchasing power and sophistication of wine drinkers.

Zhong Weiming, COFCO General Manager of Great Wall Winery, said, "Wine that used to be consumed only by a minority is fast-entering the dining rooms of Chinese people and becoming consumed by a large number of people. I believe that China will soon become the biggest wine consumer, as well as the biggest wine producer, in Asia."

Chinese wine used to sell at relatively low prices, say 5 US dollars, but now the trend is changing. Leading brands like Changyu and Great Wall are now producing wines that cost hundreds of US dollars.

But questions still exist. Counterfeit wines have emerged as a growing trend in China's booming wine market. Another issue is the relative youth of the local industry and the quality of the grapes grown. With a huge consumer base and a growing number of wine producers, China is no doubt the market of the future. But experts agree it will take many more years for it to fully mature.