South Korea’s wine imports have declined for a second consecutive year in 2024, reflecting the continued effects of the post-pandemic market slowdown. According to data from the Korea Customs Service, wine imports dropped by 9.63% in value and 8.90% in volume during the first 11 months of the year.
From January to November, the country imported 52.48 million liters of wine, worth $506.51 million, marking a significant decrease compared to the same period in 2023. This decline signals a broader trend of reduced consumer demand and a glut of wine in the market following the surge in consumption during the pandemic.
France Maintains Leadership Despite Decline
France continued to dominate as South Korea’s largest wine supplier, accounting for 44.58% of total imports. However, French wine shipments fell sharply, with a 17.87% drop in volume and a 14.56% decrease in value. The country exported 9.57 million liters worth $225.84 million to South Korea, though French wines still commanded the highest unit price among the top 10 suppliers, averaging $23.59 per liter.
Other Major Wine Exporters See Decreased Sales
Imports from other leading wine-producing nations also showed significant declines. Spain, now the largest exporter to South Korea by volume, shipped 9.8 million liters—down 21.80% from the previous year. Italy and Germany experienced similar drops in both volume and value.
However, a few countries bucked the overall trend. New Zealand, Chile, and Australia saw an increase in import volumes, with New Zealand standing out for achieving growth in both volume and value. New Zealand’s wine exports to South Korea surged by 62.43% in volume and 44.78% in value, totaling $22.72 million—surpassing Australia’s $18.57 million in wine imports.
Post-Pandemic Adjustment Weighs on the Market
The recent downturn follows a period of exceptional growth during the COVID-19 pandemic, when South Korea’s wine imports surged at a compound annual rate of 34.37% between 2020 and 2022. This boom was driven by strong household consumption and a surge in online sales. However, the market has since been affected by an oversupply of wine and a slowdown in consumer spending as the pandemic’s impact fades.
The broader economic downturn has also affected key players in the industry. Nara Cellar, South Korea’s fourth-largest wine importer, reported an operating loss of 1.68 trillion won in 2024. Meanwhile, leading distributor Lotte Chilsung Beverages saw a decline in domestic wine sales, with 56.168 billion bottles less sold in the first half of the year.
New Zealand’s Resilience Offers Hope
Despite the overall market contraction, New Zealand’s wine exports to South Korea have remained strong, signaling potential growth in niche markets even amid broader economic challenges. This growth contrasts with the general trend of reduced wine imports and highlights a shift in consumer preferences.
As South Korea’s wine market continues to adjust to post-pandemic conditions, industry players face the twin challenges of excess inventory and shifting consumer behavior. Yet, New Zealand’s continued success presents a hopeful sign for wine exporters seeking opportunities in an evolving landscape.
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