Amid a consumption slump, the domestic wine market is struggling, but New Zealand white wine is experiencing a boom. As the domestic market shifts from red wine to white wine, New Zealand's wine market share has increased.
According to export and import trade statistics from the Korea Customs Service on the 28th, the total value of wine imports in Korea last year was $443 million (about 650 billion won), a decrease of 8.6% from the previous year. The import volume also fell by 5.5% compared to the previous year.
In particular, as consumers flock to other alcoholic beverage categories like whiskey, wine's share of the overall alcoholic beverage market dropped from 10% in 2023 to 8.2% last year, a 1.8 percentage point decline.
Despite this, last year, the import volume of white wine increased by 12.6% and the import value rose by 9.8% compared to 2023. In contrast, the import volume of red wine decreased by 10.5% and the import value by 13% during the same period.
The wine industry interpreted this as the end of an era when people typically thought of "red wine" when thinking about wine, attributing it to the growing number of consumers choosing white wine based on personal preference.
◇ The power of 'Sauvignon Blanc'... New Zealand dominates the domestic white wine market
New Zealand is leading the domestic white wine market. Last year, New Zealand's wine import value increased by 43% compared to the previous year. The import volume also rose by 60%. As a result, New Zealand surpassed Chile to claim the top market share in the domestic white wine market last year.
New Zealand is a powerhouse of white wine centered around the variety known as 'Sauvignon Blanc.' Sauvignon Blanc originates from Bordeaux, France. When this grape is planted in New Zealand soil, it exhibits distinctly different characteristics from Bordeaux Sauvignon Blanc.
New Zealand Sauvignon Blanc generally exudes tropical fruit aromas like grapefruit and lime, along with a green scent reminiscent of freshly cut grass. Experts evaluate it as refreshingly compatible with Korean cuisine.
Last year, New Zealand's white wine market share in Korea exceeded 25%. This means that one out of every four bottles of white wine sold in the market is from New Zealand.
Lee Yoo-jin, a trade commissioner at New Zealand Trade and Enterprise, noted, "The New Zealand government strictly manages the quality of export wines with its 'No-Fault policy,'" adding, "The competitive edge of New Zealand wine is that you cannot go wrong choosing any wine."
The rapidly changing wine export landscape of various countries after COVID-19 has also fueled the popularity of New Zealand white wine. In response to increased export inventory due to the recent stagnation of the Chinese wine market, the New Zealand wine industry ramped up its marketing efforts in the Korean market. Domestic consumers now have more opportunities to enjoy New Zealand wine at lower prices than before.
◇ Targeting women's preferences in the 2030s... Accessibility for wine novices
According to a report on the analysis of the Korean imported wine market, the preference for white and sparkling wines has particularly appeared strong among consumers in their 20s and 30s and among women. The survey found that 48% of women preferred white wine compared to 25% for red wine.
Industry experts interpreted this as a 'generational shift in wine consumption.' Younger generations tend to value personal taste and direct experiences over brand names or fame.
A representative from the Korean Sommelier Association stated, "Sauvignon Blanc pairs well with spicy Korean cuisine due to its moderate acidity and clean taste, making it enjoyable in settings like picnics," adding, "Due to these characteristics, New Zealand white wine has gained traction in the 10,000 to 20,000 won price range, which is commonly found in convenience stores."
The high accessibility of New Zealand white wine has contributed to its popularity among female consumers. Almost all New Zealand white wine sold in the country features the screw cap method, alleviating the burden of opening corks that novice wine drinkers may feel.
Due to its light and refreshing characteristics, the alcohol content is kept between 11% and 13%. Compared to red wine, which reaches 13% to 16%, it is easier to drink.
◇ Fierce competition in the domestic Oceania wine market
Importers that secured a significant portfolio of New Zealand white wines in advance are faring well in the challenging wine market.
Keumyang International has seen notable success since last year by strengthening its Oceania wine offerings. According to Keumyang International, the renowned New Zealand white wine brand 'Brancott Estate' saw its sales increase by 136% last year compared to 2023. Brancott Estate was named the third best wine for value satisfaction among the top 10 wines in the world by Wine Spectator in 2023, and it was so popular that it sold out upon its domestic launch.
Also, the Australian national treasure wine brand 'Penfolds,' which is grouped with New Zealand in the Oceania region, saw a 7% increase in sales of its icon wine series centered around white wine. In contrast, the total import value of other Australian wines fell by 11% during the same period.
Penfolds is the representative winery in Australia known for producing 'Grange,' a wine registered as a national cultural heritage in Australia since 2001. The history of Australian wine is often divided into before and after the birth of Grange, indicating its high prestige.
A representative from Keumyang International stated, "Our goal is to continuously expand market share by consistently introducing Oceania wines, covering both New Zealand and Australia," adding, "We will find and offer high-quality wines that have not been introduced before."
Currently, Keumyang International is focusing on expanding its share of the Oceania wine market through the 'Amazing Oceania' promotion.
In addition, various importers are competing in the market by leading New Zealand wine brands like LOTTE Chilsung Beverage's 'Kim Crawford,' Shin Dong Wine's 'Villa Maria,' and Ayoung FBC's 'Oyster Bay.'