Home>Updates

Ningxia wine's geographic indication uncorks market potential

By YUAN SHENGGAO | China Daily | Updated: August 26, 2021

The winemaking industry in the Ningxia Hui autonomous region has been booming in recent years, and with the introduction of geographic indications, the industry is embarking on a bid to increase its reputation for producing world-class wines.

The Helan Mountains' eastern foothill wine region, where the majority of Ningxia's wine is produced, was granted the GI of Helan Mountains' East Foothill Wine in 2014.

Since that time, 25 of the region's wine producers have been granted approval to use the special GI status.

The application of the GI status has allowed these wine producers to elevate their brands, boost their reputation and receive more exposure and profit.

As a result, during this year's China Brand Day on May 10, an event initiated by the State Council to emphasize the importance of Chinese indigenous brands, Helan Mountains' East Foothill Wine ranked ninth on the list of products under GI protection, with a brand value of 30 billion yuan ($4.62 billion).

The importance of GI means that Ningxia brands not only get ahead in the domestic market, it also allows them greater market penetration overseas.

Ningxia Xige Winery, for example, has had its products exported to countries such as the United States and France, selling 1.5 million bottles in the process and earning more than 100 million yuan.

Ningxia's wine industry is continuing in its global expansion.

In July 2020, Helan Mountains' East Foothill Wine was selected to be placed on the protected list of the European Geographical Indications Agreement, further opening up the European market.

In July of this year, the Ningxia National Grape and Wine Industry Open Development Comprehensive Pilot Zone was inaugurated. The goal of the pilot zone is to ensure that by 2035, the Ningxia Helan Mountain's wine industry will cover 100,000 hectares of vines, have an annual output of 600 million bottles of wine, a comprehensive output value of 200 billion yuan, and complete the integration of the primary, secondary and tertiary industries.

Currently, the wine industry covers 30 towns and farms, with an annual output of 130 million bottles of wine and an output value of 26.1 billion yuan.