Wine in Asia Pacific

November 2019

Asia Pacific is the second largest market for wine consumption in volume terms, driven primarily by China, Japan and South Korea. The region offers significant potential due to its large customer base, rising disposable incomes and favourable climatic conditions for wine cultivation, especially in China. On the back of premiumisation, especially in non-grape wine – the largest category in volume terms – the region will experience higher value growth than volume growth over the period 2018-2023.

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Key findings

Premiumisation of non-grape wine

Non-grape wine is the leading category in all major markets of Asia Pacific. Manufacturers in China, Japan and South Korea – the three biggest markets – are focusing on offering high-end rice wine targeting millennials. Companies are marketing their products to attract millennials by packaging the product in attractive bottles, adding a sweeter flavour and reducing the alcohol content.

More women in the workforce and rising household incomes aid value growth

Wine is popular among female consumers, with wine-drinking considered to convey high social status and a sophisticated lifestyle. The growing number of women in the workforce and hence increased discretionary spending are contributing to rising demand for premium wine. Premium wine is increasingly being consumed on a daily basis. The globalising business culture in Asia Pacific, shifting towards a female-inclusive, more gender-equal workforce, is expected to contribute to wine consumption.

Supermarkets and hypermarkets remain dominant in the major markets of China, Japan and South Korea

Supermarkets and hypermarkets are the leading outlets for grocery shopping in Asia Pacific. Women are typically more comfortable shopping for wine in these outlets than in food/drink/tobacco specialists. Furthermore, premium grocery stores provide an experience-based purchasing process. They also act as a one-stop-shop for wine consumers because they sell multiple varieties of cheese, with which wine is often consumed.

Cultural significance and purported health benefits of red wine will drive consumption

Growing demand for wine in Asia Pacific is attributable to increasing urban affluence and the prevalence of wine in business culture. In particular, red wine is expected to spur growth, as it is perceived to be beneficial to health. The Chinese association of the colour red with power, wealth and good fortune will also contribute to stronger sales.

Scope
Key findings
Asia Pacific is the second largest regional market in volume terms
Asia Pacific is expected to register promising growth over next five years
Culturally ingrained non-grape wine remains popular in the region
Domestic consumption and lack of innovation influence growth
Growth in non-grape wine declining or sluggish, except in China
Asia Pacific is seeing the popularity of non-grape wine fade
Consumers in China, Japan and South Korea prefer modern grocers
Supermarkets to benefit from urbanisation and premiumisation
China, the biggest market, is also the most fragmented
Domestic companies engaged in selling non-grape wine dominate
Domestic wine undercuts imported wine with localised production
Jangsu Makkeoli is the leading brand in Asia Pacific
East Asia to drive growth in wine in Asia Pacific over 2018-2023
China and South Korea expected to lead growth
Habit persistence and soft drivers to influence growth prospects
China: market context
China: competitive and retail landscape
Japan: market context
Japan: competitive and retail landscape
South Korea: market context
South Korea: competitive and retail landscape
India: market context
India: competitive and retail landscape
Thailand: market context
Thailand: competitive and retail landscape
Philippines: market context
Philippines: competitive and retail landscape
Vietnam: market context
Vietnam: competitive and retail landscape
Kazakhstan: market context
Kazakhstan: competitive and retail landscape
Taiwan: market context
Taiwan: competitive and retail landscape
Uzbekistan: market context
Uzbekistan: competitive and retail landscape
Indonesia: market context
Indonesia: competitive and retail landscape
Hong Kong: market context
Hong Kong: competitive and retail landscape
Malaysia: market context
Malaysia: competitive and retail landscape
Azerbaijan: market context
Azerbaijan: competitive and retail landscape
Singapore: market context
Singapore: competitive and retail landscape
About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models

Wine

This is the aggregation of still and sparkling light grape wines, fortified wine and vermouth and non-grape wine. In terms of alcohol content, light wine usually falls into the 8-14% ABV bracket while fortified wine ranges from 14-23% ABV. Low and non-alcoholic wine is also included in the data (attributed to each sector as appropriate).

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