Singapore a bright spot for wine

Wine Intelligence reports that South Korea and Singapore have emerged as two of the “brighter spots in the premium wine universe” as the consumer base for grape-based wine grows in each of the Asian markets.

Its findings are support by Wine Australia's data. In its report on the 2022 Australian winegrape crush, Market Insights, Peter Bailey says:

“Pleasingly, data is showing that there is demand for Australian wine in our major export markets, such as the United States and the United Kingdom, particularly in premium price segments.

"There is also growth in a range of Asian markets, including Singapore, Japan, South Korea, Vietnam, Thailand and Taiwan. Wine Australia is working with the sector to identify new opportunities in these markets and in others, as well as developing new products and channels within the Australian domestic market.”

Singapore

Wine Intelligence describes the Singapore market as a maturing one where spend is growing and the consumer base is broadening.

The wine category commands a 10 per cent share of the alcohol market in Singapore which is dominated by beer. From 2016-2021, wine volumes grew across all varietals and this trend is forecast to continue over the next five years.

While IWSR data shows that still wine volumes dipped in Singapore, expectations are that this will re-bound. In particular, Sparkling Wine is forecast to grow with a volume CAGR of 4 per cent from 2021 to 2026.

As in Australia, COVID-19 lockdowns saw consumption of wine shift to the home and a trend toward premiumisation. Even while on-premise returns, this trend continues, reflecting a persistent economic confidence in the Singapore market.

This is in contrast with Western markets where consumer confidence is declining rapidly.

With the exception of supermarkets and travel retail, channel usage in Singapore has remained relatively stable since 2020. The nation has high online penetration, with just over half of semi-annual wine drinkers buying wine online. Use of online is highest among more frequent wine drinkers, reaching over two-thirds of the wine drinking population, a similar level to that seen in mainland China.

While Covid has boosted wine drinking at home, the on-trade remains an important channel for wine, with Singaporeans enjoying wine in the on-trade at comparable levels to the US and Australia.

In case you missed the report on South Korea, click here.