Yantai has a long wine history. Zhang Bishi, a patriotic overseas Chinese, established the first wine company in China in 1892, namely Changyu Pioneer Wine Co, launching a new era of industrialized wine production in China and making Yantai the birthplace of China's wine industry.

In 1915, Keya Brandy, Vermouth and Riesling Dry White Wine produced by Changyu Company won gold medals and other awards at the Panama–Pacific International Exposition. Since then, wines produced in Yantai have enjoyed good reputation in China and abroad.

In the 1980s, the wine industry in Yantai made a breakthrough. On October 31, 1987, Yantai was named the “International Vine and Wine City” by the International Office of Vine and Wine (OIV). Robert Tinlot, president of OIV, present the award to Yantai, making the city the only one in Asia to win this honor. The honor helped Yantai's wine industry go global.

Now, Yantai is one of the major producers of wine grapes and the biggest Chinese wine production facility. Yantai has gathered more than 150 renowned wine companies including Changyu, Greatwall and Grand Dragon. Over 50 wine chateaus, including Chateau Changyu Castel, Chateau Junding, Chateau Huadong Parry, Chateau Lafite and Chateau Scotland, have been built, while some are under construction.

The wine industry has enjoyed prosperity with the opening up of Yantai. The Yantai International Wine Festival has been held annually in Yantai since 2007, which helps build Yantai's brand as an “International Vine and Wine City”. In recent years, Yantai's wine production has accounted for one-third of the country's total. In 2013, Yantai's wine sales revenue took up 53.5 percent of the country's total, and profit accounted for 66.9 percent.