The South Korean wine market is undergoing a notable transformation, driven by consumers seeking value in a challenging economic environment.
Wines priced under 10,000 won (USD 7.06) are rapidly gaining traction as retailers respond to increasing demand for budget-friendly options. This trend highlights the growing polarization between premium and affordable wine segments in the country.
Retailers Embrace Affordable Wine
Retailers like Kim’s Club, part of the E-Land Group, have found success with directly sourced, low-cost wines. The October launch of their Everybody’s Wine Plus series included four Portuguese wines priced at 9,999 won. The standout, Confidential Reserva, achieved a 4.0 rating on Vivino and sold over 4,000 bottles within a month.
Encouraged by this momentum, Kim’s Club introduced two Italian sparkling wines in November at the same price point, further boosting sales. According to E-Land Group, directly sourced wine sales at Kim’s Club surged 20.6% year-over-year from October to November 2024.
Shinsegae L&B, South Korea’s largest wine importer, is also capitalizing on the trend. Its Chilean wine G7, created in partnership with Vigna del Pedregal, exemplifies affordability. During a “Squeak Day” promotion, it retailed for just 4,470 won (USD 3.16) and has remained a consistent seller with over 2 million bottles sold since its debut.
Parallels in Neighboring Markets
South Korea’s growing appetite for affordable wines mirrors trends in China. Retailers like Sam’s Club have turned directly sourced wines into a retail phenomenon, selling approximately 5 million bottles in 2023 and generating over USD 109.5 million in revenue.
A Polarized Market
South Korea’s wine market, which doubled its import value between 2019 and 2022, saw a 12% decline in 2023 due to oversupply. The market is now divided into two distinct consumer groups:
- Premium Buyers: Consumers drawn to fine wines that dominated during the pandemic.
- Value Seekers: A growing segment of price-conscious buyers gravitating toward affordable wines with higher alcohol content.
Retailers are adapting their offerings accordingly. Yu Hongjie, founder of China-based Sparkling World, notes that high-alcohol, sweet wines from Italy’s Puglia region are particularly popular in South Korea due to their competitive pricing and consumer appeal.
The Future of Wine Retail in South Korea
As the market matures, retailers face the challenge of balancing the demands of both premium and budget-conscious segments. For the latter, creative sourcing and strategic pricing are critical to maintaining momentum.
Kim’s Club and Shinsegae L&B have demonstrated that directly sourced wines are not just a cost-effective solution for consumers but also a lucrative strategy for retailers. With innovative product lines and competitive pricing, South Korea is emerging as a case study in navigating a polarized wine market while meeting evolving consumer preferences.
Source: Vino-Joy