Korean Wine Market

Korea’s Drinking Culture

1. It’s always been important. People would drink alcohol during

rituals as a way to show respect to their elders and ancestors.

2. RESPECT Being invited to drink with your

superiors is one of the biggest compliments a Korean worker can receive.

3. Comradery There’s a lot of hierarchy in Korea,

especially in the workplace. So Koreans look at drinking as a chance to bond with their peers in a way they can’t at work.

Korean Wine Market

Early stage of development

Over the last 10 years South Korea’s wine market has gone up 400%.

71% of the wine exported to Korea is Red wine.

Wine accounts for less than 1% of all alcoholic beverages consumed.

Source: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Wine%20Market%20Brief_Seoul%20ATO_Korea%20-%20Republic%20of_10-30-2013.pdf

Source: http://chartsbin.com/view/1017

Korean Wine Market

Early stage of development

France has a 30% market share, roughly $60,000,000.

Chile has a 22% market share, roughly $44,000,000.

Italy has a 16% market share, roughly $32,000,000.

America has a 11% market share, roughly $22,000,000.

Source: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Wine%20Market%20Brief_Seoul%20ATO_Korea%20-%20Republic%20of_10-30-2013.pdf

Comparable Markets: Japan

Japanese wine market capitalization is $1.47 Billion, 700% more than the value of Korea’s.

America holds a 7.7% market share, roughly $128,590,000.

Wine accounts for about 3.5% of alcoholic beverages consumed.

Source: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Wine%20Annual_Tokyo%20ATO_Japan_2-21-2013.pdf

Source: http://chartsbin.com/view/1017

Comparable Markets: China

China is now the largest red wine market worldwide.

Chinese wine drinkers drank 1.86 Billion bottles of red wine in 2013. An increase of 136% over the last 5 years!

American wine producers currently have about a 4% market share of the import market, roughly $80,000,000 annually.

Wine still only accounts for 3.6% of alcohol consumed.

Source: http://chartsbin.com/view/1017 Source: http://gsm.ucdavis.edu/blog-feature/wine-china

Expectations of the Korean Wine Market

By 2017 Korea is expected to import 48 million bottles of wine.

Imports of red wine alone are estimated to be $494 million by 2017.

If the American market share flat lined at 11%, it would still be valued at $54,000,000. A 145% increase!

Source: http://www.businesskorea.co.kr/article/3003/wine-market-korea-become-key-market-global-wine-companies