Wine Market Rebounds, but 'U-Shaped Consumption' Becomes Entrenched

Liquor Companies and Wine Importers See Modest Sales Growth in Off-Season

Demand Concentrated on Affordable 10,000-Won Wines and 'Iconic Wines' Priced Above 500,000 Won

The wine market, which had been on a decline following the transition to the post-COVID-19 endemic, is showing signs of a rebound this year. Sales of major wine importers have seen a modest increase in the first half of the year. Analysts point out that the market is being buoyed by a ‘U-shaped’ consumption trend, where demand is concentrated on both value-for-money wines in the 10,000 won range and expensive ‘iconic wines’.

According to the electronic disclosure system of the Financial Supervisory Service on September 10, HiteJinro recorded 16.5 billion won in wine sales in the first half of this year, up approximately 1.8% compared to the same period last year. During the same period, Lotte Chilsung Beverage achieved wine sales of 38.9 billion won, an increase of about 2.6% year-on-year. HiteJinro, Korea’s largest alcoholic beverage company, primarily focuses on soju, and last year its annual wine sales totaled 34 billion won, marking a 17% decrease compared to the previous year. Lotte Chilsung Beverage posted 74.7 billion won in wine sales last year, a 6.6% decrease from the previous year.

The growth of wine specialty importers was even more pronounced. Naracella’s sales reached 50.4 billion won, an increase of roughly 11% from the same period last year. At Shinsegae L&B, white wine sales were up 24%, and red wine sales rose 20% year-on-year. Kumyang International also saw its white wine sales grow by 10%, and red wine sales by 3% during the same period.

Industry insiders cite strong performance from value-priced New World wines from the United States and New Zealand, along with growing demand for champagne and white wines from Burgundy, France, as the key drivers of the wine market’s rebound. Wine consumption in the mid-range price category, roughly between 50,000 and 100,000 won, is reportedly flat. An industry official commented, “As the polarization of wine consumption becomes more pronounced, iconic wines costing more than 1 million won are in such high demand that they are difficult to keep in stock. Meanwhile, demand for low-priced wines is also increasing, prompting the import of a greater variety of wines from different countries and grape varieties, which has led to a modest growth in sales.”

In fact, wine importers have diversified their low-priced product offerings, which were previously focused on red wines from Chile and Spain. By importing a broader range of wines from various countries and grape varieties, they have expanded their portfolios and increased consumer choice, ultimately leading to higher sales.

Traditionally, the first half of the year is an off-season for wine, but relatively strong performance is fueling expectations for even greater sales in the peak season,which begins in the second half of the year. This is because wine consumption typically increases between September and December, when holidays and social gatherings are more frequent. An industry official stated, “The autumn and winter seasons are when demand for red wine rebounds. We aim to actively target the highly polarized consumer preferences during the second half, coinciding with Chuseok and year-end gatherings, which make up the wine market’s peak season.”

This content was produced with the assistance of AI translation services.