Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-25T07:38:55.140Z Has data issue: false hasContentIssue false

How Much Wine Is Really Produced and Consumed in China, Hong Kong, and Japan?

Published online by Cambridge University Press:  29 April 2018

Kym Anderson*
Affiliation:
Wine Economics Research Centre, School of Economics, University of Adelaide, Adelaide SA 5005; and Crawford School of Public Policy, Australian National University, Canberra, ACT 2600
Kimie Harada
Affiliation:
Chuo University, Tokyo, Japan; and Visiting Fellow, Crawford School of Public Policy, Australian National University, Canberra, ACT 2600; e-mail: [email protected].
*
e-mail: [email protected] (corresponding author).

Abstract

Statistics on the wine market in countries where it is not traditionally produced or consumed are estimates using simple methods. In northeast Asia those statistics are exaggerated for a combination of several reasons. One is a labelling issue: imported bulk wine is able to be added to domestically produced wine without the front label having to declare the bottle may contain foreign product. Similar freedom applies to wine made from imported grape juice concentrate. A second (particularly in China) is a double-counting issue: domestic wine produced in one region of the country may be blended with wine produced in and packaged for final sale from another region, with both regions claiming it as their contribution to national wine output. A third possibility is a smuggling issue: some wine re-exports and imports are unrecorded. These possibilities of the wine market being exaggerated are significant for firms seeking to export to and sell in such countries, especially in the fast-growing ones of northeast Asia. This article shows the extent to which estimates for the region could change for such indicators as per capita wine consumption, wine self-sufficiency, and the region's share of global wine consumption, when alternative assumptions are made in response to these issues. (JEL classifications: F14, L66, Q13, Y10)

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, K., and Pinilla, V. (with the assistance of A.J. Holmes) (2017). Annual Database of Global Wine Markets, 1835 to 2016. Wine Economics Research Centre, University of Adelaide, posted at www.adelaide.edu.au/wine-econ/databases (accessed 29 November 2017).Google Scholar
Anderson, K., and Wittwer, G. (2015). Asia's evolving role in global wine markets. China Economic Review, 35, 114.Google Scholar
Boyce, J. (2017). China wine watch: Have imports already overtaken local production? Grape Wall of China, posted at http://www.grapewallofchina.com/ (accessed 20 May 2017).Google Scholar
Boyce, J. (2018). Do imported wines now have a majority of the market? Grape Wall of China, posted at http://www.grapewallofchina.com/2018/03/22/imports-top-local-wines-china-market/ (accessed 24 March 2018).Google Scholar
JETRO. (1998). Japanese Market Report, Regulations and Practices: Wine. Report No. 15, March, Tokyo: Japan External Trade Organization.Google Scholar
Kawasaki, N., Nagatani, T., Yamakawa, R., Nakamura, Y., Iba, H., Ueda, N., Ochiai, K., and Oda, S. (2011). An empirical analysis on the sustainable business of a regional small winery, from the viewpoint of product portfolio based on potential sources of grape. Journal of ASEV Japan, 22(1), 2230.Google Scholar
Ministry of Finance. (2017). Trade Statistics of Japan. http://www.customs.go.jp/toukei/info/index.htm (accessed 28 September 2017).Google Scholar
National Tax Agency (of Japan). (2015). Notice on establishing labelling standards for manufacturing process and quality of wine. Notice No.19, Tokyo: National Tax Agency, October. http://www.nta.go.jp/shiraberu/zeiho-kaishaku/kokuji/151030_3/index.htm and in English at http://www.nta.go.jp/foreign_language/sake/geographical/01.htm and http://sakefanworld.info/ja/sake_GI/pdf/GI_en.pdf (accessed 28 September 2017).Google Scholar
National Tax Agency (of Japan). (2016). 2016 Factsheet [Kajitsushi Seizogyo no Gaikyo]. http://www.nta.go.jp/shiraberu/senmonjoho/sake/shiori-gaikyo/seizogaikyo/kajitsu/pdf/h27wine-shosai.pdf (accessed 28 September 2017).Google Scholar
National Tax Agency (of Japan). (2017). 2017 Factsheet [Kajitsushi Seizogyo no Gaikyo]. http://www.nta.go.jp/shiraberu/senmonjoho/sake/shiori-gaikyo/seizogaikyo/kajitsu/pdf/28wine.pdf (accessed 9 March 2018).Google Scholar
Oda, S. (2001). Targets and topics for wine industry research. Natural Resource Economics Review [Seibutsu Shigen Keizai Kenkyu, Kyoto University], 21, 197215.Google Scholar
Robinson, J. (2018). Hong Kong celebrates 10 duty-free years. Jancis Robinson blog, 27 February. Available at https://www.jancisrobinson.com/articles/hk-celebrates-10-duty-free-years (accessed 27 February 2018).Google Scholar
Shimamura, A. (2008). Kanzen Kokusan Shugi. Tokyo: Toyo Keizai.Google Scholar
Takahashi, T., Harada, K., Saito, H., and Kobayashi, K. (2017). Wines of Japan. Tokyo: Ikaros Publications.Google Scholar
United Nations. (2018). COMTRADE database. United Nations, Department of Economic and Social Affairs, Statistics Division, Trade Statistics, posted at https://comtrade.un.org/data/ (accessed 5 March 2018).Google Scholar
Uytsel, S.V. (2015). Geographical indications in Japan. Rochester, NY: SSRN. Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2692450 (accessed 28 September 2017).Google Scholar
Bank, World. (2017). World Development Indicators. Washington, DC: World Bank. http://databank.worldbank.org/data/reports.aspx?source=WDI-Archives (accessed 28 September 2017).Google Scholar
Yoon, S., and Lam, T.-H. (2012). The alcohol industry lobby and Hong Kong's zero wine and beer tax policy. BMC Public Health, 12(717), 112.Google Scholar