[2025 Liquor Market] ③ 'Godseongbi' White Wine Rises... Exchange Rate Fluctuations as a Variable

Decline in Consumption... Last Year's Wine Imports at $460 Million, Down 9% from Previous Year
Continued Popularity of Easy-to-Drink White Wine
Value-for-Money Wines Expected to Grow... Exchange Rate Surge and Price Hikes as Variables

Last year, the wine market experienced a downturn due to a slowdown in consumption caused by the economic recession, resulting in a roughly 10% decrease in wine import volume. However, white wine, which is relatively easy to drink without much burden, showed strong performance despite the sluggish market environment.

This year, the domestic wine market is expected to continue the strong trend of white wine, with a deepening polarization between value-for-money wines and premium wines. The wine industry is anticipated to focus on battling challenges such as profit margin pressure from rising exchange rates and inventory burdens.

Decline in Consumption Among 2030s... Reduction in Wine Import Volume

According to customs export-import trade statistics on the 29th, last year’s domestic wine import value was $462.11 million (approximately 664 billion KRW), marking an 8.7% decrease compared to the previous year. Wine import value, which was around $330 million in 2020, surged explosively the following year to reach $560 million, setting a record high. It maintained a solid demand for two more years, staying above the $500 million mark, but dropped nearly 10% last year, falling back to the $400 million range.

Import volume also decreased. Last year, wine import volume was 52,036 tons, shrinking by 8.0% compared to the previous year. In recent years, the overall wine import volume expanded, with annual imports exceeding 70,000 tons in 2021. However, as the wine market gradually shifted toward premiumization, the volume dropped to around 50,000 tons in 2023, and the market’s cooling atmosphere last year caused another decline.

Last year, the domestic wine market saw a noticeable overall sales decline due to the economic recession and weakened consumer sentiment. In the ongoing economic downturn marked by recession and high inflation, it was difficult for wine, still classified as a luxury item, to increase sales volume. Especially, consumption by the younger generation in their 20s and 30s, who had driven consumption after the COVID-19 pandemic, significantly decreased, leading to market contraction. Industry insiders feel that the drop last year was felt more sharply due to the high growth experienced until 2022.

However, not all factors were negative. The popularity of cooking survival programs like Netflix’s "Black and White Chef" increased interest in the synergy between wine and food, expanding the consumer base interested in wine across various age groups. As a result, entry-level low-priced wines with good accessibility showed growth, especially in convenience stores. At the same time, as wine became part of culture and hobbies, demand for premium wines also increased.

An industry insider explained, "Last year, wine sales volume dropped by about 10%, and the price per bottle decreased by 17%, reflecting overall consumption contraction. With rising costs of materials and worsening exchange rates, the cost of wine increased, so the wine industry’s profitability was poor, making it a year focused on maintenance and management." He added, "Consumers tended to prefer stable and familiar brands and regions, showed high interest in discount events, and it was fortunate that premium wine lines such as Champagne and Burgundy performed relatively well."

Strength of White and Value-for-Money Wines... Cost and Inventory Burdens Remain Challenges

While the overall wine import volume shrank, white wine showed a different trend from the general market contraction. Last year, white wine import value was $109.3 million (approximately 145 billion KRW), increasing by 16.3% year-on-year, and import volume also rose by 8.6% to 16,571 tons. In contrast, red wine import value ($243.74 million) and volume (28,486 tons) decreased by 6.1% and 0.7%, respectively, following the market trend.

The growth of white wine based on solid demand can be understood as a natural flow resulting from the domestication and sophistication of wine drinking culture. In the past, the domestic wine market was dominated by red wine, but white wine has steadily increased in demand as it is perceived as a wine with a lighter taste and lower alcohol content, making it easier to enjoy with food. Above all, growing interest in health and dieting is expected to further accelerate the shift in consumption toward relatively less burdensome white wine.

This trend is also confirmed by import trends by country. Last year, France, the birthplace of wine, maintained its top position with an import value of $175.34 million (approximately 253 billion KRW), accounting for nearly 40% of total imports. Following France were traditional producing countries such as the United States ($76.81 million), Italy ($61.38 million), Chile ($46.89 million), and Spain ($26.48 million), all ranking within the top five.

However, while the import volumes from these top producing countries generally decreased, only New Zealand, famous for producing the white grape variety Sauvignon Blanc, significantly increased its import volume, leading the growth of white wine. Another industry insider said, "New Zealand is the youngest among wine-producing countries, and its Sauvignon Blanc has the advantages of a youthful feel, easy drinkability, and good value for money, which is why it is continuing its rapid growth."

This year, the domestic wine market is expected to see prominent growth in value-for-money wines due to the economic recession. Although overall wine import volume is declining due to rising import prices and unstable freight costs, demand for high-quality wines at reasonable prices is increasing in line with consumers’ value-driven consumption trends. The wine industry is also expected to adopt a polarized strategy focusing on premium products and value-for-money products, with competition intensifying especially in the low-priced wine market that has secured mass appeal.

On the other hand, some voices suggest that the industry will respond passively to the market since it is unlikely that the depressed consumer sentiment will quickly reverse. Following the emergency decree situation at the end of last year, the exchange rate surged to nearly 1,500 KRW per dollar, continuing cost pressure. Therefore, the industry is expected to focus on preventing profit margin deterioration by reducing promotions and raising prices. Another industry insider predicted, "Wine importers are likely to be reluctant to introduce new grape varieties or new wine styles due to inventory pressure."