Korean Shine Muscat Grapes Lose Popularity in China, Taiwan Emerges as ⁣Alternative Market

Korean Shine Muscat grapes,⁣ once a favorite among China’s high-income classes, are rapidly losing popularity ​in the Chinese market. This decline is attributed to the increased production​ and improved quality of Shine ⁣Muscat⁣ grapes in China, which has ‍led to a decrease in the competitiveness of Korean products.

According to the Korea Customs Service, Korea’s grape ⁢exports to​ China decreased by 49% last year, with a total value of $1.38 million. This decline is⁤ a⁣ significant drop from the $2.73 million worth of grapes exported to China⁣ in the previous year. China’s share of total exports of ⁤Korean Shine Muscat also decreased from ‌22% in 2021 to 3% last year.

Historically, ‌Korea’s grape exports to China were relatively low, amounting to less than $100,000 until 2017. However, exports increased significantly in 2018, reaching $1.62 million, and peaked at $8.34 million in 2021. Despite this growth, grape exports ‌decreased by one-sixth ⁤in just two years.

Shine Muscat grapes account for the ⁤majority of all grapes exported‌ from Korea, making up 91% of last year’s exports.‌ The high quality of Korean Shine Muscat ⁣grapes was a major factor in their popularity⁣ in⁢ China, despite being more ⁣expensive than Chinese⁣ products.

However, the increased cultivation of premium and first-class Shine Muscat grapes in China has led to a decline in demand for Korean products. The cultivation area of Shine Muscat in China has ‌increased 60 times since 2013, reaching 1.2 million mu (about 800 square kilometers) as of last year. ‌This is more than 10 times the cultivation area in Korea.

The price of Shine Muscat grapes in China has also decreased significantly, from 300⁢ yuan⁣ (about 57,000 won) per pound (500g) to below 10‌ yuan (about 1,900 won). This⁤ decline ‍in price, combined ‍with the increased production of high-quality grapes in China, has led ‍to a decrease in ⁤consumption of⁢ Korean Shine ⁣Muscat ​grapes in China.

According ‌to Hwang Eui-chang, head⁤ of the Korea Grape ​Export Association, the market share ‍of Korean products⁤ in the premium market ​in⁢ China has dropped to 8 percent, with ​most Chinese products being of higher quality than ‍Korean ones.

Despite the decline in exports to China, Korea’s total grape export ⁢amount has recovered, thanks to the emergence of Taiwan as a new market. Taiwan is ⁢quickly becoming the ⁢largest market for⁣ Korean Shine Muscat grapes, surpassing Hong Kong and Vietnam. Last year, Korean grapes exported to ‍Taiwan amounted to $10.68‌ million (about 14.3 billion won), a significant increase from​ the $510,000 ⁢exported in 2021.

Taiwan’s share ​of Korean grape exports has‍ also increased from 1.4% to 24% over the‍ same period. This shift in⁣ the market ‌has helped to offset the⁤ decline in exports to China and has provided a new ⁤opportunity for Korean grape ‍exporters.