Wine - Eastern Asia

The Wine market in Eastern Asia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing customer preferences in the region. Eastern Asian consumers have developed a taste for wine, with many considering it a sophisticated and trendy beverage. Wine is often associated with social status and is seen as a symbol of luxury and refinement. As a result, there is a growing demand for high-quality wines from prestigious wine regions around the world.

Trends in the market: One of the key trends in the Eastern Asian wine market is the increasing popularity of red wine. Red wine is favored by consumers in the region due to its perceived health benefits and its association with traditional Chinese medicine. Red wine is believed to have antioxidant properties and is often consumed for its potential cardiovascular benefits. This trend has led to a surge in the sales of red wine in Eastern Asian countries. Another trend in the market is the rise of domestic wine production. While imported wines still dominate the market, there has been a growing interest in locally produced wines. This can be attributed to the increasing quality of domestic wines and the support from the local government to promote the wine industry. Local wineries are investing in modern production techniques and are producing wines that can compete with international brands.

Local special circumstances: One of the unique characteristics of the Eastern Asian wine market is the importance of gift-giving culture. Wine is often given as a gift during special occasions and celebrations, such as weddings and business meetings. This has created a demand for premium and luxury wines, as they are considered more appropriate for gifting. Wine producers and retailers have recognized this trend and are catering to this specific consumer need by offering a wide range of premium wines.

Underlying macroeconomic factors: The economic growth in Eastern Asian countries has also played a significant role in the development of the wine market. As disposable incomes rise, consumers have more purchasing power to spend on luxury goods, including wine. Additionally, the growing middle class in the region has led to an increase in wine consumption. Middle-class consumers are more willing to experiment with new products and are increasingly interested in wine as part of their social and cultural experiences. In conclusion, the Wine market in Eastern Asia is experiencing growth due to changing customer preferences, including a preference for red wine and an increasing interest in domestically produced wines. The importance of gift-giving culture and the economic growth in the region are also contributing factors. As the market continues to evolve, it is expected that the demand for wine in Eastern Asia will continue to rise, presenting opportunities for both domestic and international wine producers.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.