Korea Intoxicated by French Premium Wine... First Half Import Value Also Hits Record High

[Asia Economy Reporter Eunmo Koo] The domestic wine market is moving past the introductory phase and entering a mature stage. While the wine import value in the first half of this year hit a record high, the import volume decreased, indicating that the market has entered a phase of premiumization and diversification, where consumers seek wines that suit their tastes rather than simply drinking more than before.

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According to the Korea Customs Service export-import trade statistics on the 28th, the domestic wine import value in the first half of this year was $297.48 million (approximately 391 billion KRW), a 6.2% increase compared to the same period last year ($280 million). The domestic wine import value in the first half of the year has remained at a similar level for three years after surpassing $100 million in 2018. Then, influenced by the spread of the ‘home drinking’ culture last year, the import value more than doubled from the previous year ($134.67 million), setting a record high, and this year it continued the momentum despite last year's high growth, breaking the record again.

Looking at this year’s wine import trends, it is evident that domestic wine consumption is gradually becoming more premium. The import volume in the first half was 35,104 tons, down 13.0% from the same period last year (40,371 tons). Despite the increase in import value, the import volume decreased, which suggests that demand for premium wines has increased, and the domestic wine market has entered a phase of qualitative growth beyond quantitative expansion.

An industry insider explained, "Recently, accessibility to wine in Korea has rapidly improved, and as wine drinking experience has gradually increased, consumers are expanding their preferences beyond simply consuming low-priced cost-effective wines to exploring various production regions and grape varieties." In fact, discount events held at large supermarkets feature French Bordeaux Grand Cru wines priced in the millions of KRW as representative wines, and there is even an ‘open run’ phenomenon for these products.

This premiumization trend can also be seen through the countries of origin. The import value of French wines, considered the home of premium wines such as Burgundy, reached $103.86 million (approximately 136.5 billion KRW) this year, a 24.6% increase from the same period last year ($83.52 million). The share of French wines in total import value also rose to 35%, further increasing from the 30% level recorded last year.

Similarly, the import value of American wines, centered on California’s Napa Valley, another premium wine region, grew 17.6% year-on-year to $56.02 million, showing growth exceeding the overall import value increase rate. On the other hand, the import values of relatively affordable wine regions such as Chile and Australia showed a decline. This year, Chilean and Australian wine import values were $32.86 million and $15.55 million, respectively, down 20.7% and 10.3% compared to the same period last year.

Along with premiumization, diversification is also taking place. The import value of red wine this year was $182.43 million, accounting for more than 60% of the total import value, maintaining its overwhelming position, but showing little difference from last year ($182.79 million). Meanwhile, the import value of sparkling wines such as Champagne increased by 32.1% to $48.10 million compared to the same period last year, and white wine imports also grew by 6.4% to $53.61 million, showing notable progress.

Recently, Shinsegae L&B conducted a survey through the public opinion research firm Korea Research targeting 817 adults aged 20 to 54 living in five major metropolitan cities. The survey found that red wine was the most preferred type of wine among consumers at 57.2%. This was followed by sparkling wine (20.2%), white wine (17%), and other wines such as ros?, dessert, and natural wines (5.6%).

An industry insider said, "As the wine popularization atmosphere expands the consumer base, the preferred types of wine are also diversifying. While demand for traditional red wine remains solid, the popularity of white wines such as Sauvignon Blanc, which have relatively lower alcohol content and a refreshing taste, and sparkling wines that can be enjoyed with a crisp sensation, is also increasing."

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