South Korea’s wine imports continued their downward trajectory in 2024, with the first 11 months of the year showing a 9.63% decline in value compared to the same period in 2023.
This marks the second consecutive year of decline, following a pandemic-driven surge in demand that left the market oversupplied and struggling to maintain momentum.
Import Statistics
From January to November 2024, South Korea imported 52.48 million liters of wine, valued at USD 506.51 million, according to data from the Korea Customs Service. These figures represent an 8.90% decrease in volume and a 9.63% drop in value compared to the same period in the previous year. The ongoing decline underscores the challenges faced by a market that had expanded rapidly during the pandemic years.
France Leads Despite Declines
France retained its position as South Korea’s top wine supplier, accounting for 44.58% of the total import value. South Korea imported 9.57 million liters of French wine worth USD 225.84 million during the review period. However, French wine imports saw significant declines, with volume dropping 17.87% and value falling 14.56% year-on-year.
Notably, French wines commanded the highest unit price among the top 10 suppliers, averaging USD 23.59 per liter, reflecting their premium status in the South Korean market.
Country-Specific Trends
Wine imports from other major suppliers, including Spain, Italy, and Germany, also decreased. Spain, which surpassed Chile as the largest exporter by volume, shipped 9.8 million liters, representing a 21.80% decline from the previous year.
In contrast, only New Zealand, Chile, and Australia among the top 10 suppliers managed to increase their export volumes to South Korea. New Zealand, in particular, stood out with imports rising by 62.43% in volume and 44.78% in value, reaching USD 22.72 million. This performance allowed New Zealand to surpass Australia in total import value during the period.
Post-Pandemic Market Dynamics
South Korea’s wine market experienced unprecedented growth during the pandemic, driven by robust household consumption and the rapid expansion of online sales. Wine imports surged from USD 376.44 million in 2020 to USD 637.63 million in 2021, peaking at USD 679.72 million in 2022, reflecting a compound annual growth rate (CAGR) of 34.37%.
However, the post-pandemic landscape has proven less favorable. Excess inventory from the pandemic boom, coupled with declining household consumption, has created a challenging environment for importers and distributors. Notable industry players have felt the impact:
- Nara Cellar, South Korea’s fourth-largest wine importer, reported an operating loss of USD 1.68 million in the first half of 2024.
- Lotte Chilsung Beverage, a leading distributor, experienced a 5.6% decline in domestic wine sales, totaling USD 30.03 million during the same period.
Bright Spot: New Zealand’s Performance
Amid the broader market downturn, New Zealand emerged as a rare success story. The country’s wines not only increased in volume but also in value, defying the general trend. South Korea’s imports of New Zealand wines rose to USD 22.72 million, outpacing Australian wines, which totaled USD 18.57 million. New Zealand’s strong performance highlights the growing appeal of its high-quality offerings in the South Korean market.
Source: Vino-Joy