Language selection

Search

Icewine and wine in China

Overview

Canadian Icewine is a sweet dessert wine renowned for its rich flavours and unsurpassed smoothness. While Icewine is also made in Germany, Austria and the United States, Canada is the only wine-producing region in the world with a climate so cold that its vintners can guarantee an annual production of this highly sought-after product.

Icewine is created from grapes naturally frozen on the vine, a process that generates a thick golden liquid with highly concentrated natural sugars and flavours. The resulting wines are of spectacular quality, with subtle bouquets of peaches, apricots, tropical fruits, honey, toffee, caramel, maple and nuts, depending on the grape varietal used in making the Icewine. The range of grape varietals is continually expanding as producers move to red wine grapes—such as Cabernet Franc—from the traditional Icewine base of Vidal and Riesling grapes. Icewine is also being infused into sparkling wines and spirit-based products, expanding the range of Icewine products even further.

Trade data

China is Canada's largest market for Icewine despite the decline in exports between 2013 and 2015. Most Canadian Vintners Quality Alliance (VQA) Icewine comes from Ontario, followed by British Columbia. Nova Scotia produces Icewine in smaller quantities. Quebec has not exported Icewine since 2014.

Canada's top ten markets for Icewine, CAD millions
Rank Markets 2012 2013 2014 2015 2016 CAGR* 2012-2016
World 15.48 17.61 19.46 18.62 19.37 5.77%
1 China 8.57 8.06 6.69 6.27 6.50 -6.67%
2 United States 0.48 3.01 3.65 4.37 6.13 88.71%
3 South Korea 1.74 2.16 2.48 2.47 2.31 7.30%
4 Singapore 1.00 0.84 0.83 0.77 0.76 -6.65%
5 Hong Kong 0.91 1.15 2.24 1.13 0.78 -3.82%
6 Japan 0.54 0.51 0.30 0.47 0.58 1.59%
7 Taiwan 0.60 0.42 0.63 0.61 0.45 -6.92%
8 United Kingdom 0.43 0.53 0.79 01.20 0.92 20.57%
9 Malaysia 0.36 0.21 0.23 0.19 0.09 -30.33%
10 Germany 0.01 0.01 0.40 0.27 0.16 131.27%

Source: CATSNET, 2018.

*CAGR: Compound annual growth rate.

Canada's export of Icewine to China by province, CAD
Rank Province 2012 2013 2014 2015 2016 CAGR* 2012-2016
Total 8,570,289.0 8,063,890.0 6,686,978.0 6,266,824.0 6,502,461.0 -6.67%
1 Ontario 6,895,604.0 6,104,253.0 4,529,326.0 4,095,724.0 4,999,160.0 -7.73%
2 British Columbia 1,582,447.0 1,603,119.0 2,063,572.0 2,120,697.0 1,413,146.0 -2.79%
3 Nova Scotia 2,016.0 249,858.0 - 50,403.0 90,155.0 158.60%
4 Alberta - 86,112.0 - - - N/C
11 Québec 90,222.0 20,548.0 64,380.0 - - -100.00%
9 Nunavut - - 29,700.0 - - N/C

Source: CATSNET, 2018.

*CAGR: Compound annual growth rate.

N/C: Not calculable.

Total wine sales

Due to a government campaign against gifts and extravagant spending in China in 2013 and 2014, premium sales of still grape wine and rice wine declined, which dragged down overall growth of wine during the review period. However, in 2016, the total volume sales of wine in China reached US$66.5 billion at a compound annual growth rate of 2.8% from 2012 to 2016, while total volume sales of wine grew at a compound annual growth rate of 2.1% in the same period, reaching a sale total of 4.5 billion litres in 2016.

With the rising middle class in China, there is expected growth in demand for wine from emerging low-tier cities as the consumption of wine slows down in first-and second-tier cities. As a result, the total sales of wine in China are expected to reach US$91.3 billion by 2021, at a compound annual growth rate of 6.5% (from 2017 to 2021). This provides an opportunity for Canadian Icewine producers to sell their product to Chinese consumers.

Historical total sales of wine in China, from 2012 to 2016
Unit 2012 2013 2014 2015 2016 CAGR* 2012-2016
US$ millions 59,617.70 56,524.80 55,385.80 60,923.10 66,485.70 2.8%
Million litres 4,218.00 4,208.80 4,108.20 4,350.00 4,581.50 2.1%
Litres per capita 3.1.1 3.1 3.0 3.2 3.3 1.6%

Source: Euromonitor, 2017.

*CAGR: Compound annual growth rate.

Forecast total sales of wine in China, from 2017 to 2021
Unit 2017E 2018 2019 2020 2021 CAGR* 2017-2021
US$ millions 71,060.80 75,917.80 80,933.80 86,065.50 91,253.90 6.5%
million litres 4,821.9 5,072.1 5,326.9 5,584.6 5,842.6 4.9%
Litres per capita 3.50 3.60 3.80 4.00 4.10 4.0%

Source: CATSNET, 2018.

*CAGR: Compound annual growth rate.

E: Estimate.

New product launch analysis

From 2012 to 2017, there were a total of 131 wine products launched in China. However, none of these launches included Icewine. Over 91% of wine launches in China were new product introductions. The remaining were relaunches due to change in packaging and new formulation in ingredients. Of the total wine launched in China during the review period (2012 to 2017), three of the products were imported from France, South Korea, and Spain.

Total wine products launched in China by category and year from 2012 to 2017
Category 2012 2013 2014 2015 2016 2017 Total by category
Fortified & other wines 5 22 18 28 17 37 127
Wine 0 0 3 0 1 0 4
Total by year 5 22 21 28 18 37 131

Source: Mintel, 2017.

Wine launches by launch type from 2012 to 2017
Launch Type Number of products
New product 71
New variety/Range extension 49
New packaging 7
Relaunch 3
New formulation 1
Total products 131

Source: Mintel, 2017.

Top ten ingredients used in wine launches in China, from 2012 to 2017
Ingredient Number of products
Waters 96
Food and drink additives 86
Glutinous rice 85
Wheat 64
Caramelized sugar 39
Food colours 28
Caramel colour 28
Brewers yeast 27
Rice 25
White sugar 24

Source: Mintel, 2017.

Top ten claims used in wine launches in China from 2012 to 2017
Description of this image follows.
Description of above image
Ethical - Environmentally Friendly Product 7
No Additives/Preservatives 6
Ease of Use 4
Other (Functional) 3
Economy 3
Ethical - Environmentally Friendly Package 3
Seasonal 1
Premium 1

Source: Mintel, 2017.

Product examples

Imported wines

Fabulous Brands

China
Jun 2016

White Wine

Vinko - Companhia de Vinhos

China
Jul 2015

Red Sangria

HiteJinro

China
Oct 2014

Bamboo Charcoal Wine

Non-imported wines

Nv Er Hong Winery

China
Dec 2017

Ten Year Shao Xing Wine

Jin Feng Wine

China
Dec 2017

Refreshing Yellow Wine for Post 70s

Linyuanchun Eco Technology

China
Feb 2017

Blueberry Wine

Guyuelongshan Shaoxing Wine

China
Feb 2017

Hong Yun Yellow Wine

Shi Ku Men Brewing

China
Jul 2016

Three Year Aged Hua Diao Yellow Wine

Xiaowei Food

China
May 2016

Lao Rice wine

Mik Brewery

China
Jun 2015

Apple Flavoured Original Brewed Rice wine

Wu Zhan Mao Alcohol

China
Nov 2014

Frozen Ice Sulpture Yellow Wine

Malina Wines & Spirits

China
Jun 2014

Osmanthus and Aged Grape Wine

Malina Wines & Spirits

China
Dec 2013

Green Plum Wine

Malina Wines & Spirits

China
Nov 2013

Sweet Berry Wine

Malina Wines & Spirits

China
Nov 2013

Yumberr Wine

Source: Mintel, 2017.

Resources

Icewine and Wine in China
Global Analysis Report

Prepared by: Ranna Bernard, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018).

For more information reach us at aafc.mas-sam.aac@canada.ca.

Report a problem on this page
Please select all that apply:

Date modified: