The Asian market is a demanding market that requires constant monitoring and adaptation. Beyond the rigorous export conditions in Asia and the pandemic, the economic development of cities, especially secondary ones, opens new markets with a different consumption pattern.
In 2020, China imported 430.23 million liters of wine with a total value of EUR 1.6 billion. In the first quarter of 2021, wine sales were higher than last year. Red wines still dominate the market. Southern cities tend to prefer a lighter taste while those in the West and North tend to prefer stronger tastes and fruity flavors. The wine is becoming more attractive, especially to younger consumers who have seen their purchasing power increase. Wine is now associated with a lifestyle. This new clientele has a real interest in knowing more about the wines they consume. This thirst for knowledge translates into a demand for proximity and meetings with producers. This new consumer is attentive to the origin, brand and packaging, but also the reputation of the vineyard, the quality of the wine and the recommendations. As for the willingness to consume organic or natural wine, the interest for this type of wine is not obvious in China, even if it is growing rapidly in Shanghai.
In South Korea, the imports in 2021 increased by +76% . Asia's third largest economy imported $506.2 million worth of wine, demonstrating real opportunities in this market. Sources in the industry explained that wine imports have grown exponentially as Koreans prefer to drink alone at home instead of being exposed to the pandemic in bars. There is still a growing interest in wines from responsible agriculture: organic, biodynamic, natural wines like in Japan or Taiwan.
The Asia-Pacific wine market remains the most interesting for wine exporters as it is recording, despite the sanitary crisis, a significant increase in the 5 main markets (China, Japan, South Korea, Singapore and Taiwan). For this reason, wine producers are very active and physically present either through a dedicated agent in the country and/or by personally taking part in online meetings.
(Sources : Marketing China - 2020|Business France - 2020 | ADOCC agency - Nov 2021 | Ambafrance.org | OIV - 2021 )
The global health crisis, the customs constraints imposed by President Trump have not spared the wine and spirits sector in North AmericaAs a result, all industry players have been forced to adapt their distribution channels and some have even chosen to build up stocks as early as 2019 to offset the price increases.
With an annual consumption of 12.2 liters per capita in North America, online sales from dedicated web platforms, the democratization of home delivery, ... e-commerce takes all its meaning and takes a determining place on the U.S. market (+119% with the pandemic). Fashions and consumption trends are impacted. In spite of everything, we observe, in 2021, good performances for imports from France (+13%), Portugal (+18%) and South Africa (+13%).
With 650 million consumers, 2 billion USD of imports and an evolution of cultural mentalities, Latin America saw its wine consumption multiply by 2. We note a growing interest of consumers for the appellations of foreign wines and for the PGI, PDO and AOC, especially in Argentina, Uruguay and Chile. Imports of still wine in Brazil (containing <2L) are particularly concerned by this acceleration with + 44 % in 2 years.
Consumers are generally price sensitive, but the higher socio-professional categories tend to look for better quality and new products. In the USA, 10% consume daily and 50% drink wine at least once a week.
Despite the impact of COVID 19, political uncertainties and economic crises, the American markets remain buoyant and offer many opportunities for producers willing to adapt to the markets, new consumption habits and distribution networks. The United States imported 1.311 billion liters in 2020 for a value of 5.16 billion Euros, an increase of almost 7%...
(Sources: Business France - April 2020 | Vitisphere and Team France Export - June 2020 | OIV- 2021 | ADOCC Export-2021)
Europe represents 45 % of the wine growing areas, 70% of the wine exports and 60% of the volume of wine produced in the world... With 3 of the 5 countries (France, Italy, Germany, the United States and China) accounting for 50% of world consumption, the Wines and Spirits sector represents 65% of the European Union market share.
Many countries such as Hungary, Poland, Romania and Ukraine are moving towards more Western habits of consumption. The increase in their purchasing power benefits the wine market, and consumption is continually increasing. The development of the wine bar culture, the multiplication of promotional activities for wines, and consumer education favour market growth.
For several years, the European market has also shown a very strong interest in premium, Bio/Organic, high environmental value (HVE), natural, and biodynamic wines, amongst others.
Between health concerns and changes in consumption habits, business opportunities remain numerous. Despite strong competition between producing countries, experts are still confident that European exports will be maintained due to the strong demand for wines with a geographical indication.
(Sources: Business France - 2019 | Adocc agency - May 2020 | Ambafrance.org | CCI France - 2019
France Agrimer - July 2020 | vinetsociete.fr - 2019 | la revue du vin de France - 2018 | vitisphère - Jan 2020)