Between 'Homsul' and 'Honsul', the Matured Wine Market

A Culture of Enjoyment Over Intoxication
Last Year's Import Value Nears 700 Billion Won
Import Volume Doubled in 3 Years
All Four Convenience Store Chains See Sales Growth
Smart Order Implementation Also Plays a Role

[Asia Economy Reporter Eunmo Koo] Last year, wine import value increased by nearly 70%, showing a sharp growth trend in the domestic wine market. The prolonged COVID-19 pandemic has boosted the ‘home drinking’ and ‘solo drinking’ cultures, which combined with consumer trends that emphasize personal preference even for a single glass, have driven up wine demand.

Record High Wine Import Value

According to the Korea Customs Service and the liquor industry on the 20th, last year’s wine import value reached $559.81 million (approximately 690 billion KRW), a 69.6% increase from the previous year. Over the past few years, wine import value has steadily increased, surpassing $200 million for the first time in 2017 ($210.04 million), followed by $240 million in 2018, $260 million in 2019, and $330 million in 2020. Then, last year, it showed explosive growth, breaking through the $500 million mark in one leap. Import volume also nearly doubled over three years, from 40,292 tons in 2018 to 76,575 tons last year.

By country of origin, France led with $181 million (approximately 223 billion KRW), accounting for about one-third (32.4%) of total import value. It was followed by the United States ($91 million), Italy ($90 million), Chile ($75 million), Spain ($41 million), and Australia ($32 million). As wine demand increased, the number of new wine import and distribution companies entering the market also rose rapidly. The number of domestic wine importers increased by 21% from 390 companies in 2020 to 474 last year. During the same period, the number of import transactions also rose by 41%, from 34,645 to 49,028, demonstrating an active market despite the global logistics crisis.

Diversification of Wine Distribution Channels

As the wine craze intensifies, distribution channels are diversifying. From traditional sales channels such as department stores to convenience stores, large supermarkets, and wine specialty shops, each is leveraging its own competitive edge to attract consumers. Last year, wine sales at four convenience store chains all recorded triple-digit growth rates. Seven Eleven showed the highest growth rate at 204.4%, followed by GS25 (158.3%), Emart24 (106.0%), and CU (101.9%). The biggest advantage of convenience stores is accessibility. Especially with smart order systems enabling online ordering and nearby pickup, they have overcome the limitation of space that makes it difficult to stock a wide variety of wines.

Large supermarkets are also solidifying their position as key wine suppliers. Last year, Emart’s wine sales grew by 25% compared to the previous year, surpassing 150 billion KRW for the first time in the industry. Purchases through wine specialty shops are also becoming more active. In the first half of last year, the growth rate of wine purchase channels showed that wine shops grew 181% compared to 2019, surpassing department stores (63%). Notably, during the same period, the increase rate of wine shop purchases among people in their 30s and 20s was 213% and 188%, respectively, showing a significant rise in usage among younger generations.

Expressing Individuality Even in a Single Glass

The growth of the domestic wine market has been greatly influenced by changes in drinking culture that became clear as COVID-19 prolonged. Before COVID-19, alcohol was mainly consumed as a means to get drunk. It functioned as a tool for social gatherings such as company dinners and meetings, so consumption was centered on relatively inexpensive and limited types of alcohol like soju and beer, mainly in the entertainment market. However, after COVID-19, as home drinking and solo drinking cultures spread, the purpose of drinking shifted from getting drunk to enjoying the experience. This increased interest in wine, which allows consumers to express their preferences and create various conversation topics even with a single glass.

Professor Eunhee Lee of Inha University’s Department of Consumer Studies explained, "As the purpose of drinking has changed to enjoying the atmosphere and relieving daily fatigue, the popularity of wines, which require a high level of immersion in the drink itself, is increasing." She added that the characteristics of wine?such as the ability to discuss taste, aroma, brewing process, and food pairing, as well as easy differentiation from others?align well with recent consumption trends among younger generations.

The diversification of purchasing methods is also credited with contributing to the growth of the wine market. To prevent sales to minors, online purchase and delivery of alcoholic beverages are prohibited. However, since the revision of the Liquor Tax Act in March 2020, a smart order system has been enabled, allowing consumers to pre-order and purchase alcohol online and pick it up at their desired store. This has reduced the hassle of having to select and decide on wine directly at the store, which analysts say has increased demand.

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