Wine Heating Up Amid Home Drinking Trend, Selling Smoothly on Its Own

Last Year's Import Volume Hits Record High... Massive Imports of Low-Priced and Limited Edition Products
Convenience Store CU Sales at 76.5%... Emart Sees 41% Growth Again This Year
Whiskey Takes a Direct Hit from Social Distancing... Lowest Level Since the Foreign Exchange Crisis

[Asia Economy Reporter Jo In-kyung] #Lotte Department Store introduced a ‘Self Choice Bar’ in a corner of the basement wine section at its main branch on the 5th. This space recommends wines based on price, sales ranking, and purchase purpose for customers who find it difficult to choose from numerous types of wine. Consumers can purchase popular and verified wines without staff assistance. Lotte Department Store plans to set up a Self Choice Bar at its Jamsil branch on the 12th.

#On the B2 floor of The Hyundai Seoul in Yeouido, which opened last month, Ballantine’s Scotch whisky is operating a pop-up space. Located among young fashion brands and popular eateries favored by younger generations, this space offers explanations about single malt whisky and allows visitors to experience direct scent sampling.

Home Drinking, Explosive Growth in Wine

Amid prolonged social distancing due to COVID-19, last year’s wine import volume hit a record high, while whisky imports recorded the lowest level since the IMF financial crisis. Distributors expanded the wine market by importing a large number of cost-effective low-priced wines, limited edition wines, luxury wine glasses, and decanters. Whisky, which saw relatively reduced consumption, is also strengthening marketing efforts to expand its main consumer base from middle-aged and older adults to the MZ generation in their 20s and 30s.

According to the Korea Customs Service and the Korea Alcohol Industry Association, last year’s wine import volume was 54,127 tons, and import value was $330 million, increasing by 24.4% and 27.3% respectively from the previous year, marking an all-time high.

From the end of March last year, when the COVID-19 spread intensified, to the end of the year, Emart’s wine sales increased by 43.4% compared to the previous year, and this year has also shown a growth rate of 40.7%. At Lotte Department Store, wine sales increased by 22% last year compared to the previous year, and by 35% in January and February this year compared to the same period last year. As wine sales increased, related product sales such as cheese and wine glasses surged by 49% and 125%, respectively.

The rapid increase in wine consumption is attributed to the spread of the home drinking trend, where people mainly enjoy light drinking at home with family. At convenience store CU, while beer sales increased by 16.4% and soju by 20.6% from March to December last year, wine sales soared by 76.5%.

An industry insider explained, "Low-alcohol wines sold more than high-alcohol wines, and wine sales increased significantly not only in department stores and large supermarkets but also in convenience stores. Customers who previously sought low-priced wines in the 10,000 to 20,000 KRW range have raised their sights to the 30,000 to 50,000 KRW range."

Whisky: Decrease in Commercial Use, Increase in Home Use

Whisky sales, one of the two major pillars of imported alcoholic beverages, suffered the worst recession due to the direct impact of COVID-19. Whisky imports, which exceeded $150 million annually from 2017 to 2019, fell to $132 million last year, down 13.9% from the previous year. Import volume also decreased by 20.1% to 15,923 tons. This was due to a significant reduction in company dinners and evening gatherings, and the closure of entertainment bars as restricted businesses.

However, in the whisky market traditionally focused on commercial use, sales of whisky for home use at large supermarkets and other outlets slightly increased.

An official from the imported liquor industry said, "Overall whisky import volume decreased, but the proportion of commercial sales declined while home use sales increased. For some brands, home use sales have surpassed commercial sales, reversing the ratio."

Meanwhile, beer import volume also decreased by 18.6%, from $280.88 million in 2019 to $228.63 million last year. Since the boycott of Japanese products in 2019 sharply reduced sales of Japanese beer, the overall beer import market has also been significantly contracted.

Valentine's Day is being celebrated with the 'Ballantine's Single Malt Pop-up Space' on the B2 floor of The Hyundai Seoul in Yeouido until the 21st, offering a variety of attractions and events.

This content was produced with the assistance of AI translation services.