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How much wine is really produced and consumed in China, Hong Kong and Japan?

Author

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  • Kym Anderson

    (Wine Economics Research Centre, School of Economics, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia)

  • Kimie Harada

    (Faculty of Commerce, Chuo University, Japan)

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 imports are unrecorded. These possibilities of the wine market being exaggerated are significant for firms seeking to sell in such countries, especially in the fast-growing ones of northeast Asia. This paper 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.

Suggested Citation

  • Kym Anderson & Kimie Harada, 2018. "How much wine is really produced and consumed in China, Hong Kong and Japan?," Wine Economics Research Centre Working Papers 2017-05, University of Adelaide, Wine Economics Research Centre.
  • Handle: RePEc:adl:winewp:2017-05
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    File URL: https://media.adelaide.edu.au/economics/papers/winedoc/winewp2017-05.pdf
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    References listed on IDEAS

    as
    1. Kym Anderson & Vicente Pinilla, 2017. "Annual Database of Global Wine Markets, 1835 to 2016: Methodology, Derived Indicators, and Sources," Wine Economics Research Centre Working Papers 2017-04, University of Adelaide, Wine Economics Research Centre.
    2. Kym Anderson & Glyn Wittwer, 2019. "Asia’s Evolving Role in Global Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 14, pages 347-377, World Scientific Publishing Co. Pte. Ltd..
    3. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Glyn Wittwer, 2021. "Expanding the Global Bev Model to enhance analysis of trade policy, COVID impacts and other wine industry issues," Wine Economics Research Centre Working Papers 2021-05, University of Adelaide, Wine Economics Research Centre.
    2. Kym Anderson, 2020. "Asia’S Emergence In Global Beverage Markets: The Rise Of Wine," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(04), pages 755-779, June.
    3. Harada, Kimie & Nishitateno, Shuhei, 2021. "Measuring trade creation effects of free trade agreements: Evidence from wine trade in East Asia," Journal of Asian Economics, Elsevier, vol. 74(C).
    4. Glyn Wittwer & Kym Anderson, 2022. "Enhancing a model of global beverage markets," Wine Economics Research Centre Working Papers 2022-04, University of Adelaide, Wine Economics Research Centre.
    5. Anderson, Kym, 2020. "Asia’s emergence in global beverage markets: The rise of wine," CEPR Discussion Papers 14389, C.E.P.R. Discussion Papers.
    6. Glyn Wittwer, 2021. "Expanding Global Bev to enhance analysis of trade policy, COVID impacts and other wine industry issues," Centre of Policy Studies/IMPACT Centre Working Papers g-319, Victoria University, Centre of Policy Studies/IMPACT Centre.

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    More about this item

    Keywords

    Apparent wine consumption; blending imported bulk wine and local wine; wine from imported grape juice concentrate; wine smuggling;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts

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