Alcohol import value increases by 26%... Enjoying premium wine and whiskey

Enjoy a Drink at Home, Make It Luxurious
83% of 2,000 Prefer 'Home Drinking'
Preference for High-End Over 1 Million Won
Wine and Whiskey Sales Increase by 418%

[Asia Economy Reporter Lim Hye-seon] As the entertainment market stagnates and more people enjoy domestic craft beer instead of imported beer, the steadily declining imported liquor market has turned to a growth trend again this year. This is the result of increased consumption of high-end wine and whiskey as more people drink at home due to the prolonged COVID-19 pandemic.

Imported Liquor Up 26.2% This Year

According to customs export-import trade statistics on the 17th, the import value of liquor from January to July this year was $799.7 million, up 26.2% compared to the same period last year. By type, wine imports reached a record high of $325 million, increasing 101.2% compared to the same period last year. This amount is close to last year’s annual import value ($330.01 million). By origin, France accounted for the largest share at $101.41 million, followed by the United States ($54.43 million), Chile ($46.02 million), Spain ($24.79 million), and Australia ($19.72 million). Whiskey imports also increased. Whiskey import value was $92.54 million, up 48.8% from the same period last year. By origin, the UK accounted for $83.43 million, representing 90% of total imports.

The liquor industry attributes the surge in wine and whiskey consumption to the continuation of social distancing, which reduced drinking occasions outside and increased drinking at home. According to a survey of 2,000 adult men and women conducted by Lotte Members through the research platform ‘Lime,’ 83.6% responded that they drink at home since COVID-19. Before the pandemic, the main drinking locations were home (40.2%), bars (31.0%), and restaurants (23.9%). The number of people drinking at home more than doubled. By type, sales increased for wine (100.0%), domestic beer (54.7%), and spirits (53.5%).

Liquor Market Also "The More Expensive, The Better It Sells"

Premium high-priced products are also popular in the imported liquor market. At Hyundai Department Store, sales of high-priced wine and whiskey products over 1 million KRW this year increased by 418% compared to last year. In particular, sales of Ch?teau P?trus wine, considered the highest grade among ‘Grand Cru’ first-class premium wines, increased more than fivefold. This wine sells for over 7 million KRW per bottle. At the ‘Wine Clearance Sale’ held at all Shinsegae Department Store branches in June, the average spending per customer increased by 30% compared to the previous year’s event. The two representative premium French wines, Bordeaux Grand Cru and Burgundy, gained popularity. Ch?teau Latour, valued at about 3.2 million KRW, was also sold. Among whiskeys, Japanese whiskey stocks are limited, but once restocked, they sell out immediately. Popular products include Hibiki 21 years (790,000 KRW) and Yamazaki 18 years (850,000 KRW).

More people are also seeking high-priced wines at marts and convenience stores. At E-Mart, sales of liquors priced over 500,000 KRW increased by 90% compared to last year. At convenience store CU, high-priced products such as Roman?e-Saint-Vivant (4.2 million KRW), Ch?teau Mouton Rothschild (1.61 million KRW), and Ch?teau Latour (1.5 million KRW) have been continuously sold through mobile pre-orders (CU Wine Shop) over the past year. CU plans to introduce the industry’s first wine curation service in the second half of the year. At convenience store 7-Eleven, whiskey sales doubled (104.5%) compared to last year. To meet the growing whiskey demand, 7-Eleven offers premium whiskeys that were previously hard to find in convenience stores through the ‘Liquor Pre-order Service’ on the Seven App. Among the single malt whiskeys launched exclusively in the industry in April, the ‘Macallan 1824 Masters Series,’ the Macallan Reflection product priced at about 1.8 million KRW sells more than the Macallan Rare Cask priced at about 420,000 KRW.

A distribution industry official explained, "Due to the impact of COVID-19, wine and whiskey enthusiasts have been unable to travel abroad, so the demand for wines that could be purchased locally overseas has returned domestically, driving the popularity of high-priced imported liquors."