Italian fine wines looking towards Asian markets, from mature Japan to emerging South Korea

The most recently updated data, in September 2023, reveals that Japan, the most mature Asian market for Italian wine, and South Korea, one of the most interesting emerging markets, are in sharp decline compared to 2022; respectively, -11.2 % and -34.5% (ISTAT data analyzed by WineNews). Yet, especially in South Korea, in 5 years’ time wine consumption (though still very low) has grown +168%, and imports have doubled. And, in Japan, the average value of wines has grown +47%, while there are still interesting margins to continue growth. This was the main topic of the Nomisma Wine Monitor survey, commissioned by the Istituto Grandi Marchi, the organization that unites 18 of the leading prestigious Italian wineries (to name just a few - Ambrogio and Giovanni Folonari, Antinori, Argiolas, Ca’ del Bosco, Carpenè Malvolti, Donnafugata, Masi, Chiarlo, Pio Cesare, Tasca d’Almerita, Tenuta San Guido, Lungarotti, Tenuta San Leonardo and Umani Ronchi), which together reach a total turnover of 610 million euros (4.35% of the total Italian wine turnover in 2022), and the value of sales abroad equals 4.25% of the entire Italian wine exports in 2022, representing 12 Regions and counting 7.000 hectares of cultivated vineyards.
The survey was carried out during the period October-November 2023 on a sample of 1.600 wine consumers residing in a few of the large Japanese and Korean cities (Tokyo, Osaka, Seoul and Busan). The first questions on the survey concern consumption behavior. Japan registered the highest wine consumption (45% of the population usually consumes wine), and the prevalent target was the over 50s (Gen X and Baby Boomers). South Korea was slightly lower (39%), where Gen Z accounts for more than the Baby Boomers (18% versus 16%). Price is the main purchase driver, together with territory of origin (34% of Japanese consumers) and then value of the brand (19% of Koreans) are the prevalent factors for purchasing as well as the main parameters to identify a high quality wine. Another important factor the survey revealed is that the role of Italian restaurants is considered one of the main levers of communication and diffusion of fine wines. As a matter of fact, consumers in both Countries consider tastings and cooking shows interesting moments of in-depth study, as well as one of the most sought after moments for consumption. As far as packaging is concerned, both Countries pay particular attention to details and territorial references on the label. The Japanese show high appreciation for cork stoppers, while these do not represent a priority to South Koreans. Having profiled the perception and behavior of consumers in the Far East, the last section of the Nomisma Observatory survey explored forecasts and future prospects, which, among other things, are positive for Italian fine wines. “In spite of the fact that France is the leader at 58% of wine imports in Japan and 35% in South Korea”, Denis Pantini, Head of Nomisma Wine Monitor pointed out, “ 21% of Japanese consumers expected to increase their consumption of Italian fine wines over the next 3 years (compared to 7% who, instead, said they will reduce consumption). In South Korea the prospects are even brighter, as almost one in two consumers expected to increase their purchases, compared to 17% of those who imagined they would buy less and 9% said they would not change their purchasing habits”.
“The Nomisma Wine Monitor’s choice of Japan and South Korea for their survey on the dynamics of the fine wines segment on international markets, was not random, since these two Countries”, Piero Mastroberardino, president of the Istituto Grandi Marchi, emphasized, “will be the center of our mission scheduled for next November. The survey revealed a more than promising picture, demonstrating the growing appeal that quality Italian wine enjoys in the Far East as well. From this perspective, we at Istituto Grandi Marchi have always considered our position to be ambassadors of Made in Italy’s excellent wines, aiming to make tradition, territoriality and our set of ethical values accessible to all consumers of our wines”.