Republic of Korea: Wine Market 2024

Wine Market Size in Republic of Korea

The South Korean wine market rose to $X in 2021, picking up by 2.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, posted a prominent expansion. Wine consumption peaked in 2021 and is expected to retain growth in the near future.

Wine Exports

Exports from Republic of Korea

In 2021, wine exports from South Korea dropped remarkably to X litres, which is down by -62.6% compared with 2020. Overall, exports, however, enjoyed a significant increase. The pace of growth appeared the most rapid in 2016 with an increase of 385%. The exports peaked at X litres in 2020, and then declined sharply in the following year.

In value terms, wine exports shrank notably to $X in 2021. Over the period under review, exports, however, recorded a strong increase. The growth pace was the most rapid in 2014 when exports increased by 306%. The exports peaked at $X in 2018; however, from 2019 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

The United States (X litres) was the main destination for wine exports from South Korea, with a 71% share of total exports. Moreover, wine exports to the United States exceeded the volume sent to the second major destination, Australia (X litres), sevenfold. Qatar (X litres) ranked third in terms of total exports with a 4.1% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to the United States totaled +62.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+26.8% per year) and Qatar (+5.4% per year).

In value terms, the United States ($X) remains the key foreign market for wine exports from South Korea, comprising 49% of total exports. The second position in the ranking was held by Australia ($X), with a 16% share of total exports. It was followed by Hong Kong SAR, with an 8.9% share.

From 2012 to 2021, the average annual rate of growth in terms of value to the United States amounted to +36.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+24.3% per year) and Hong Kong SAR (+26.3% per year).

Export Prices by Country

The average wine export price stood at $X per litre in 2021, declining by -24.3% against the previous year. In general, the export price saw a deep slump. The most prominent rate of growth was recorded in 2014 an increase of 33%. As a result, the export price attained the peak level of $X per litre. From 2015 to 2021, the average export prices remained at a lower figure.

There were significant differences in the average prices for the major export markets. In 2021, amid the top suppliers, the country with the highest price was Hong Kong SAR ($X per litre), while the average price for exports to Ghana ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Vietnam (+12.3%), while the prices for the other major destinations experienced more modest paces of growth.

Wine Imports

Imports into Republic of Korea

In 2021, after two years of growth, there was decline in purchases abroad of wine, when their volume decreased by -1.4% to X litres. Overall, total imports indicated buoyant growth from 2012 to 2021: its volume increased at an average annual rate of +7.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +47.9% against 2018 indices. The pace of growth was the most pronounced in 2020 with an increase of 25% against the previous year. As a result, imports reached the peak of X litres, and then reduced in the following year.

In value terms, wine imports totaled $X in 2021. In general, imports, however, recorded a strong expansion. The most prominent rate of growth was recorded in 2020 when imports increased by 27%. Imports peaked in 2021 and are likely to see gradual growth in the immediate term.

Imports by Country

Chile (X litres), Spain (X litres) and France (X litres) were the main suppliers of wine imports to South Korea, with a combined 58% share of total imports. These countries were followed by Italy, the United States, Australia, Argentina and South Africa, which together accounted for a further 37%.

From 2012 to 2021, the biggest increases were recorded for Argentina (with a CAGR of +12.6%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, France ($X) constituted the largest supplier of wine to South Korea, comprising 37% of total imports. The second position in the ranking was held by Italy ($X), with a 16% share of total imports. It was followed by the United States, with a 14% share.

From 2012 to 2021, the average annual rate of growth in terms of value from France totaled +12.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+9.8% per year) and the United States (+12.3% per year).

Import Prices by Country

The average wine import price stood at $X per litre in 2021, growing by 4.5% against the previous year. Over the last nine years, it increased at an average annual rate of +2.2%. The most prominent rate of growth was recorded in 2018 an increase of 35% against the previous year. As a result, import price reached the peak level of $X per litre. From 2019 to 2021, the average import prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was France ($X per litre), while the price for Spain ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United States (+7.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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