Italy stands out abroad not only for its agri-food, pasta production or fashion sector, but traditionally also for its wine production. And for some time, therehe business opportunities for Italian wine producers seem to have multiplied, especially towards the Far East and in particular towards South Korea.
“In this country, tricolor wine is becoming synonymous with culture and lifestyle” explained the Italian Ambassador to South Korea, Federico Failla, at the last stop on the High Street Italy last February. And how can you blame him: Italian excellences are highly appreciated abroad for their elegance, their quality and their functionality. And as far as wine is concerned, the appeal of the Italian brand and the ability to adapt to the local diet are the key elements that have contributed to the boom of Made in Italy wine on the Korean market.
With an important fair on the horizon: Seoul International Wine & Spirits 2023. In this article we discover numbers, trends and business opportunities for the export of Italian wine.
South Korea is an extremely dynamic country. Starting from economic growth: in 2020, the year of Covid, GDP fell by only -0.70%, unlike the main world economies, which instead reported double-digit losses. And post-Covid? Growth stood at 4.10% in 2021 and 2.60% in 2022, numbers that show how South Korea is a country that reacts quickly in the face of any emergency.
As for exports, Italy is South Korea's second largest European supplier, just behind Germany, with a market share of 1.2% according to the latest data from the Ministry of Foreign Affairs.
Wine in Korea still represents a niche product, like all the rest of the agri-food products, but the curiosity of its inhabitants has already demonstrated a positive attraction towards Italian culture and, above all, towards our cuisine and its flagship products.
Furthermore, the geographical position of the country, halfway between China and Japan, with export conditions similar to those required by other Asian nations makes the South Korea a new possible destination for the sale of Italian wine abroad.
In 2021, the value of wine entering South Korea totaled the record amount of 506.2 million dollars, that is, an increase in the value of the 76% over the previous year.
As far as individual countries are concerned, last year France was the most important supplier of wine to South Korea (shipments worth 162.6 million dollars); followed by the United States (81.6 million dollars), Chile (68.6 million dollars) and Spain (37.9 million dollars).
The Italian data place our country still a few positions behind with just over 7 million dollars in Italian wine exports in 2021, but with a growing figure of 17%. Despite this, South Korea is a country with high growth potential, with Italian still wines (especially the reds) protagonists of a rebound of +60% on the Covid year, and with i sparkling wines Italians which in 2022 took over a increase in imports of +25% compared to the year of Covid.
European wines are therefore the most appreciated, especially the French and Spanish ones, followed by the Italian ones. In the ranking of the most popular wines we also find Chilean wines, thanks to the excellent quality-price ratio, and Australian ones, which are advantaged by their geographical proximity.
Instead, based on the type of wine, among the preferences of Korean consumers we find:
The average price per bottle remains under 20 euros, even though Korean consumers are willing to pay on average 30 euros per bottle for quality wines.
Younger people declare a clear preference for wine with a sweeter flavour, for example Moscato, resulting in everyone's favorite as a variety. As regards both red and white wines, Koreans much prefer those with clearly perceptible hints of fruit.
Generally speaking, in fact, Koreans prefer the consumption of wines with a simple taste, with a higher concentration of residual sugar and a fruity flavour. Finally, theAging is not among the tastes most appreciated by the average consumer, especially the younger one.
If the South Korean wine market has been clearly growing for at least ten years, several observers attribute the boom in 2021 wine imports to the Covid-19 pandemic and in particular to the tendency of consumers to drink more at home, rather than in bars and restaurants.
On closer inspection, an important factor has contributed to this great growth in imports, namely leasing starting from the second half of 2020by the Korean government, of the laws on the purchase of alcohol online: While previously it was only possible to buy alcohol in physical stores, the current law allows you to order alcohol online (although you can then only pick it up in a retail store or restaurant).
Beyond that, it appears to be there a change in the culture of drinking among the population, which manifests itself in some behaviors, such as:
Italian wine producers can therefore benefit greatly from the business opportunities present in Korea with the export of Italian wine: the numbers reported so far demonstrate how the export of Made in Italy wine to Korea can be the winning choice for expanding the own business abroad, obtaining ample feedback in terms of end consumers and an increase in its profits.
In order to exploit this opportunity, Octagona offers Italian companies involved in the production of wine operational support for participation in the fair Seoul International Wines & Spirits Expo 2023, That will be held in Seoul from 22 to 24 June 2023.
Why participate?
The Seoul International Wines & Spirits Expo is the only wine and spirits expo in Korea for the past 21 years, and every year it attracts more than 10,000 shoppers and 35,000 visitors.
As the only mainstream exhibition platform in the Korean wine and spirits market, the Seoul International Wine & Spirits Expo 2023 offers the opportunity to expand sales and direct promotion to actual consumers who purchase the products. During the event, you will also be able to participate in innovative events and seminars, to understand sector trends through events and to open new marketing channels through efficient one-to-one meetings with sector operators.
With the support of Octagona, you will be able to:
If you have read this far, you have certainly understood what the extraordinary opportunities of exporting Italian wine to South Korea can be.
So don't miss the chance to participate in the Seoul International Wine & Spirits Expo 2023: Octagona can offer you specialized operational support. Contact us and tell us about your export project: together we will study the best solution for your company.
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