Located in the golden northern latitude of 37 degrees, Yantai enjoys a favorable natural environment with sufficient sunshine and rainfall, mild temperature, and soil with high gravel content, which is suitable for growing grapes and producing wines.

The city is China's most extensive wine production base, accounting for 30 percent of the country's total wine output in 2022. It is home to 204 major wine producers, including Changyu, China's largest wine producer, and Long Dai, the only Asian estate of renowned French winemaker Domaines Barons de Rothschild (Lafite).