South Korea’s wine imports continued to decline in 2024, with data showing a 9.63% drop in value during the first 11 months of the year. The downturn extends a trend that began in 2023, following a pandemic-driven surge in demand.
From January to November, South Korea imported 52.48 million liters of wine valued at US$506.51 million, based on data compiled by us from Korea Customs Service. The figures represent an 8.90% decrease in volume and a 9.63% drop in value compared to the same period in 2023.
French Wines Leads
France remains South Korea’s top wine supplier, accounting for 44.58% of total import value. South Korea imported 9.57 million liters of French wine worth US$225.84 million during the period. However, French wine imports fell 17.87% in volume and 14.56% in value year-on-year.
French wines also maintained the highest unit price among the top 10 suppliers, averaging US$23.59 per liter.
Imports from several major suppliers, including Spain, Italy, and Germany, also fell. Spain, which overtook Chile as the largest exporter by volume, shipped 9.8 million liters to South Korea, a 21.80% drop from the previous year.
Of the top 10 suppliers, only New Zealand, Chile and Australia recorded increases in volume, with most other countries posting double-digit declines.
Pandemic Boom and Subsequent Decline
South Korea’s wine market expanded rapidly during the pandemic, driven by strong household consumption and online sales. Wine imports surged from US$376.44 million in 2020 to US$637.63 million in 2021 to eventually US$679.72 million in 2022, growing at a compound annual rate of 34.37%.
However, this boom left an oversupply of inventory, which, combined with declining household consumption post-pandemic, has weighed on the market.
The slowdown has affected major industry players. As written in our Asia’s Top 50 Wine Importers report, Nara Cellar, the country’s fourth-largest wine importer, reported a US$1.68 million operating loss in the first half of 2024. Lotte Chilsung Beverage, a leading distributor, saw domestic wine sales fall 5.6% to US$30.03 million during the same period.
New Zealand Wines Outperform
Despite the overall decline, New Zealand emerged as a bright spot. It was the only supplier to record increases in both volume and value, with imports up 62.43% and 44.78%, respectively. South Korea imported US$22.72 million worth of New Zealand wine during the period, surpassing Australian imports of US$18.57 million.