The Asian Wine Market Few Exporters Are Watching

If you had asked me a year ago to name Asia’s emerging wine markets, Mongolia would not have been on my list.

The first hint came during a conversation at ProWein Düsseldorf last year. When asked about the strongest-performing export markets, an export director from France’s leading wine group Castel unexpectedly singled out Mongolia as one of its fastest-growing destinations.

It was a surprising answer. At a time when nearly every discussion about Asia revolved around China’s slowdown, India’s promise or Southeast Asia’s potential, Mongolia barely featured on the industry’s radar.

It turns out the numbers back up the anecdote.

Official trade data analysed by Vino Joy News shows that Mongolia’s bottled wine imports, including both still and sparkling wines, almost doubled in value between 2019 and 2023, rising from US$6.25 million to US$12.17 million. Even after retreating from a record high in 2022, the market remained nearly twice the size it was before the pandemic.

The data reveals a market that has expanded largely outside the industry’s spotlight—and one that is beginning to develop its own distinct identity.

A market that grew while others struggled

Mongolia’s wine market followed a very different trajectory from many of Asia’s larger importers.

After a modest slowdown in 2020, imports rebounded dramatically as the pandemic progressed.

Total bottled wine imports surged from US$5.58 million in 2020 to US$12.55 million in 2021 before reaching a record US$15.76 million in 2022.

The market corrected in 2023 as weaker consumer sentiment affected spending, with imports easing to US$12.17 million. Yet that was still 95% higher than in 2019.

Volumes tell a more nuanced story.

While total imported volume declined by 37% in 2023, import value fell by a smaller 23%, suggesting importers reduced volumes while maintaining a stronger focus on higher-value wines.

The resilience of sparkling wine was particularly striking.

While still wine imports fell 29% in value during 2023, sparkling wine continued to grow, increasing 4.8% to US$3.08 million. Sparkling wines accounted for roughly one-quarter of Mongolia’s imported wine market by value in both 2019 and 2023, underscoring the category’s resilience despite broader market volatility.

France strengthens its leadership

No exporting country benefited more from Mongolia’s transformation than France.

French still wine exports rose from US$1.27 million in 2019 to US$3.55 million in 2023 – an increase of almost 180%.

More importantly, France consistently outperformed the market.

Its share of Mongolia’s imported still wine market climbed from 27.4% in 2019 to 39.1% in 2023. In sparkling wine, France’s dominance was even more pronounced, accounting for half of all imports by value in 2023.

Taken together, France now commands well over 40% of Mongolia’s imported bottled wine market by value, reinforcing its position as the country’s clear market leader.

The contrast became especially apparent during the market correction.

While Mongolia’s still wine imports declined by almost one-third in 2023, French exports slipped just 5.8%, allowing France to increase its market share as competitors lost ground.

Italy consolidated its position as the second-largest supplier over the five-year period, while Georgia established itself as an important third source of imported wine. Australia, after rapid expansion through 2022, experienced one of the sharpest corrections the following year.

From vodka to wine

Exporters already active in Mongolia say the market is undergoing a broader shift in consumer behaviour.

“Although the market remains relatively compact, we are seeing a clear shift in consumer behaviour,” said Olivier Hui-Bon-Hoa, Asia Director of Delaunay Vins & Domaines, which earlier this year entered the market through a local distribution partnership for Les Jamelles, La Belle Angèle and Édouard Delaunay.

Rather than simply replacing existing wine drinkers, wine is beginning to compete with Mongolia’s traditional spirits culture.

“Consumers are gradually moving away from the country’s long-standing preference for vodka and embracing wine as a lifestyle beverage,” Hui Bon Hoa said. “Millennials and younger urban consumers aged between 25 and 40 are now driving much of the market’s growth.”

He said purchasing decisions are increasingly shaped by factors beyond price, with consumers gravitating towards wines that offer authenticity, compelling brand stories, attractive packaging and an accessible premium positioning.

“Demand today is centred on affordable premium wines—particularly entry-level French labels rather than ultra-luxury offerings,” he said.

That trend appears to be translating into commercial results.

“Our local importing partner and Delaunay Vins & Domaines have been encouraged by the positive consumer response following the Q1 2026 launch of several of our brands, including Les Jamelles, La Belle Angèle and Édouard Delaunay,” Hui Bon Hoa said. “We will continue to monitor the market closely and support the development of each brand.”

A favourable import environment

Mongolia also offers one of the more straightforward tax regimes for imported wine in Asia.

Imported wine is generally subject to a 5% customs duty, a modest specific excise tax and 10% VAT. Compared with several Asian markets where high excise duties significantly inflate retail prices, Mongolia’s relatively light tax burden makes premium imported wines more accessible and lowers barriers for overseas producers entering the market.

Mongolia is unlikely to become Asia’s next volume market. Its population is simply too small for that.

But that may also be why it has escaped the industry’s attention.

As exporters compete fiercely for market share in China and wait for India to fulfil its long-promised potential, Mongolia offers a different proposition: a relatively open import regime, a young urban consumer base, growing interest in premium wines and a market that has quietly expanded even as much of Asia’s wine trade has struggled.

For producers looking beyond the region’s obvious destinations, Mongolia may not be the biggest opportunity in Asia—but it could be one of the least appreciated.

Editor’s note: at the time of publishing, official data for 2024 and 2025 are not yet released.