What will be the trends in the South Korean wine market in 2022?

With a population of around 51.7 million, South Korea is Asia's fourth largest economy. The average alcoholic beverage consumed by Koreans is 10.2 litres per person per year. Wine imports into South Korea jumped by more than 70 % in 2021 to reach a record level, according to the Korean Customs Service (KCS). This makes South Korea the fastest-growing market in Asia.

According to YONHAP NEWS AGENCY, in 2021, France will be the 1^er wine exporter to South Korea ($162.6 million), 2^e are the United States ($81.6m), 3^e Chile ($68.6m), 4^e Spain ($37.9 million).

We are seeing a steady increase in wine imports into this country: wine imports in 2018 were $244 million; in 2019, $259.3 million; in 2020, $332 million; in 2021, $506.2 million (during the January-November period).

There are 3 reasons for this sharp increase in demand for wine:

- Consumers preferred to drink alone at home rather than go to bars or restaurants during a pandemic, according to KCS.

- Consumers are very concerned about their health. They are looking for less strong alcoholic beverages. What's more, the image of "drinking red wine is good for your health" is highly publicised, according to Business France.

- Business France is seeing a gradual democratisation in the consumption of wine, which is becoming more accessible despite still being considered a premium product, as the retail price of imported wine in Korea is quite high due to high distribution costs and strict government regulations. 

Trends in the South Korean wine market in 2022 :

- More and more Korean consumers are paying attention to food and wine pairings. As a result, white wine, rosé wine and sparkling wine are likely to gain market share.

- Wine is benefiting from the 'wellbeing' trend, with consumers looking to consume less but better, with an interest in softer alcoholic beverages and natural, organic and biodynamic wines.

- The younger generations and the female population, who are consuming more and more wine, are now the real drivers of growth in wine consumption, but also of its diversification: grape varieties, appellations, for example IGP Pays d'Oc (+91.4 % by volume), IGP Val de Loire (+40 % by volume).

- This country was the 17th largest market in the world for champagne wines (Comité Champagne, 2021). Champagne is still sought-after for special occasions, and is enjoying strong growth: Champagne exports will reach EUR 26.1m in 2020, compared with EUR 13.9m in 2015.

South Korea is currently Asia's 3rd largest wine market (behind China and Japan) and will account for 0.21% of world consumption in 2021 according to the International Organisation of Vine and Wine (OIV). This is a market that is far from having reached maturity, so PWS has decided to follow it more closely in 2022.