Analysis of Korean wine market

Daejeon international wine & spirits fair

Asia wine buyer’s conference

Sep. 02. 2015. 17:00

Jesse Jeong

Table of contents

Wine import records to Korea until 2014

Korean wine market 2014

2015 current state (January ~ July)

2

Wine import records to Korea ~2014

3

Wine import amounts and volume trend(total)

4

Red, white, sparkling wine ratio

Amounts Volume

5

Yearly growth by countries(total amounts, dollars)

6

Yearly growth by countries(total volume, tons)

7

Wine import Amounts trend(red)

8

Wine import volume trend(red)

9

Yearly growth by countries(Red amounts, dollars)

10

Yearly growth by countries(Red volume, tons)

11

Wine import Amounts trend(white)

12

Wine import volume trend(white)

13

Yearly growth by countries(white amounts, dollars)

14

Yearly growth by countries(white volume, tons)

15

Wine import amounts trend(sparkling)

16

Wine import volume trend(sparkling)

17

Yearly growth by countries(sparkling amounts, dollars)

18

Yearly growth by countries(sparkling volume, tons)

19

Korean wine market 2014

20

2014 Korean wine market(total)

21

2014 Korean wine market(Red)

22

2014 Korean wine market(white)

23

2014 Korean wine market(sparkling)

24

2014 Argentina

25

Am

ou

nts 8

$3

.6m

illion

(2.3

7%

)

Vo

lum

e 8

68

3to

ns(2

.05

%)

Australia

26

Am

ou

nts 7

$7

.8m

illion

(4.4

2%

)

Vo

lum

e 6

1,2

81

ton

s(4.4

5%

)

Austria

27

Am

ou

nts

11$

19

0 th

ou

san

ds(0

.11

%)

Vo

lum

e

11

12

ton

s(0.0

4%

)

Chile

28

Am

ou

nts 2

$3

7.1

millio

n(2

0.9

%)

Vo

lum

e 1

8,0

78

ton

s(28

.08

%)

France

29

Am

ou

nts 1

$5

5.5

millio

n(3

1.3

%)

Vo

lum

e 3

4,3

48

ton

s(15

.1%

)

Germany

30

Am

ou

nts 9

$3

.1m

illion

(1.7

7%

)

Vo

lum

e 9

57

1to

ns(1

.98

%)

Italy

31

Am

ou

nts 3

$2

9.8

millio

n(1

6.8

%)

Vo

lum

e 2

4,7

81

ton

s(16

.6%

)

New Zealand

32

Am

ou

nts

10$

1.9

millio

n(1

.07

%)

Vo

lum

e

10

20

1to

ns(0

.7%

)

South Africa

33

Am

ou

nts 7

$4

.2m

illion

(2.3

7%

)

Vo

lum

e 6

1,6

97

ton

s(5.9

%)

Spain

34

Am

ou

nts 5

$1

1.3

millio

n(6

.41

%)

Vo

lum

e 4

3,8

80

ton

s(13

.49

%)

United States

35

Am

ou

nts 4

$2

0.4

millio

n(1

1.5

%)

Vo

lum

e 5

3,0

53

ton

s(10

.61

%)

2015 current state (January ~ July)

36

Market trends (volume Jan.~Jul.)

37

Market trends (amounts Jan.~Jul.)

38

Monthly volume trends - volume

39

Monthly volume trends - amounts

40

Growth compare to 2014(volume)

41

month 2010 2011 2012 2013 2014 2015 Growth

01 2,443 2,352 2,151 2,853 2,690 3,456 28%

02 1,378 1,526 1,776 2,035 2,181 2,277 4%

03 1,395 1,677 1,555 2,051 2,178 2,611 20%

04 1,462 1,919 1,766 2,503 2,550 2,538 0%

05 1,415 1,599 2,044 2,347 2,273 2,274 0%

06 1,723 1,272 1,838 2,031 2,096 2,417 15%

07 1,506 2,004 1,688 2,689 3,094 2,136 -31%

total 11,322 12,349 12,818 16,509 17,062 17,709 4%

month 2010 2011 2012 2013 2014 2015 Growth

01 11,739 12,543 11,325 15,887 16,231 18,684 15%

02 7,645 7,941 9,665 11,926 13,071 13,933 7%

03 7,517 9,258 8,680 12,064 14,622 15,445 6%

04 8,025 11,402 12,690 14,826 14,517 15,056 4%

05 7,760 9,744 11,616 14,839 14,175 14,206 0%

06 8,599 7,077 11,090 11,740 13,642 13,728 1%

07 7,831 12,488 9,843 14,177 17,135 12,764 -26%

total 59,116 70,453 74,909 95,459 103,393 103,816 0.4%

Growth compare to 2014(amount)

42

Total trend(Jan. ~ Jul.)

Volume Amounts

43

CAGR and growth (2010~ 2015, Jan. ~ Jul.)

Volume Amounts

CAGR

9.4%Compare to 2014

4.2%

CAGR

11.9%Compare to 2014

0.6%

Increased volume but stayed amounts means wine importers looking for cheaper wines for import

Higher CAGR in amounts than volume means wine prices are raising

44

Monthly trend - correlation with Korean holiday(1)

Korean thanks giving day(Chuseok)

Sep. 30. 2012.

Sep. 19. 2013.

Sep. 8. 2014.

Sep. 27. 2015.

Chinese new year day(Seol)

Jan. 23. 2012.

Feb. 10. 2013.

Jan. 31. 2014.

Feb. 19. 2015

45

1st week 2nd week 3rd week 4th weekSep.

1st week 2nd week 3rd week 4th weekFeb.

2014 2013 2012

2015

4th weekJan.

2015

2014

2013

2012

Monthly trend - correlation with Korean holiday(2)

46

Monthly trend - correlation with Korean holiday(3)

47

Monthly import trends by type(1)

48

Monthly import trends by type(2)

49

Monthly import volume trends (major countries) -France

50

Monthly import volume trends (major countries) -Chile

51

Monthly import volume trends (major countries) -Italy

52

Monthly import volume trends (major countries) -Spain

53

Monthly import volume trends (major countries) -USA

54

2015 trends in Korean wine market

Decreasing revenue of wine importers

Deeper bipolarization of wine market: daily market and premium market

BYOB(Bring Your Own Bottle) as a Mega trend

Bad external condition led lesser revenue

Currency exchange ratio and Federal Reserve Bank policies(base rate)

Low oil price effects to economy environments

China stock market and

Balanced wine consuming

Higher white and sparkling market sharing

Gift set is very important issues in Korean wine market

Separated and concrete Champagne market

55