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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  and
Kimie Harada
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: kimie.hara.harada@gmail.com.
*
e-mail: kym.anderson@adelaide.edu.au (corresponding author).
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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)

Keywords

apparent wine consumptionblending imported bulk wine and local winewine from imported grape juice concentratewine smuggling
Type
Articles
Information
Journal of Wine Economics , Volume 13 , Issue 2 , May 2018 , pp. 199 - 220
Copyright
Copyright © American Association of Wine Economists 2018 

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