Asia’s glass half full: The wine export market
The Asian wine market has plenty of potential for savvy Australian wine exporters set to capitalise on the region’s growth and reap the rewards on the back of the strong dollar.
Wine popularity is soaring in Asia according the top 10 list of the ‘Good Pour Wine Trends’ for 2011. With projected double digit growth of up to 20% annually and total consumption of wine forecasted to reach US$9 billion by 2013, the Asian wine market is a glass half full whichever way you look at it.
So, where should wine exporters target their efforts for the best returns in this huge region?
In a word—Vietnam.
It is among the strongest emerging markets in South East Asia and is rapidly becoming a lucrative export market for Australian wine producers. Increased personal incomes and growth of urban consumers switching from beer and spirits to wine are driving a consistent trend of increased demand for imported wines in Vietnam. According to the Wine Institute, the per capita wine consumption grew 46.7 percent between 2006 and 2009. In 2009 alone, Vietnam spent in excess of US$32 million on imported alcohol products according to the General Statistics Office (GSO).
In large Vietnamese cities like Ha Noi and Ho Chi Minh City drinking wine is commonly perceived as a prestige symbol, many young consumers also consider wine to be a healthier and more modern social drink than beer. Fuelled by the demand for imported wines, wine boutiques and retail outlets are popping up at a break-neck rate in main urban areas, it is estimated that in Ho Chi Minh City there are currently more than 45 wine operators.
Three main categories of wine are predominant with the approximate sales split 65% red wine, 25% white wine and 10% sparkling wine. Quality is sought by consumers, however the wine market is highly price sensitive and ultimately price is a significant factor in purchase decisions.
Although the Vietnamese wine market is far from saturated, Australian wine exporters do face competition due to the established presence of reputable brands from France, Chile and Argentina. French and Australian wines currently dominate the market both in terms of brand recognition and market share; with Australian wines accounting for 15% of the market share and enjoying annual growth of 25% year on year thanks to their reputation of consistent quality and being complementary to Asian food.
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