Freight handler UPS is adding wine-shipment routes to its portfolio in response to growing global demand. This includes a significant multinational component – UPS note 43% of wine is consumed outside its country of origin. New routes added including China and Mexico.

Chinese imports have climbed 17.0% in the 12 months to May 31 on an annualized basis, Panjiva data shows, to reach $2.18 billion. The biggest winners have been suppliers from Australia, which expanded 35.7%, though has seen a slowdown to 6.4% in the past quarter. The only regions to see sustained contraction were imports from the Germany and the U.S.

Chart segments Chinese imports of wine by country of origin on a trailing three month basis. Source: Panjiva

The growth in demand in Mexico has been modest, however, with growth of just 2.6% annualized over the past three years, and a contraction of 5.5% in the past quarter. Demand ius highly seasonal, peaking in October each year ahead of the All Souls and Revolution day holidays in November.

Wines from Spain (which accounted for 29.4% of the $474 million imported in the past year) did best in absolute terms, followed by a 5.4% rise in Italian products.

Imports from the U.S. meanwhile rose by just 1.9%, and have actually seen a 24.7% drop in the past quarter. The extra services from UPS may help buyers including the local division of LVMH and specialist distributor La Madrileña diversify their sourcing.

Chart segments Mexican imports of wine by country of origin on a trailing three month basis. Source: Panjiva

The move by UPS comes as U.S. wine exports have already been in the doldrums. Exports in the three months to May 31 were 8.5% lower than a year earlier. That’s part of a long-term decline that has seen volumes fall 5.1% annually over the past three years. That has been led by a collapse in shipments to Italy (16.1% lower annually) and Germany (22.3% down). Canada meanwhile has been an area of growth with a 3.0% expansion.

Chart segments U.S. exports of wine by destination country Source: Panjiva

At the same time Americans’ taste for imported wine has increased, having risen 12.2% in the past quarter, with imports from France (the second largest provider after Italy) climbing 14.6%. Imports from south America have lost out, with shipments from Chile having declined 10.5% and those from Argentina slumping by 22.0%.

Chart segments U.S. imports of wine by country of origin. Horizontal axis shows change in past quarter on a year earlier, vertical axis is change in past 12 months vs. three years earlier. Bubble size indicates total imports by volume. Bubble color for legibility only. Source: Panjiva

In absolute terms, number 2 shipper JF Hillebrand has expanded its shipments to the U.S. the most quickly, with a 6.9% rise in the second quarter. That outpaced number one exporter Giorgio Gori’s 2.4% improvement. Both may divert volumes (from France and Italy respectively) to other countries if UPS’s new service provides better access to more profitable markets.

Chart segments U.S. seaborne imports of wine by supplier name Source: Panjiva