Australian wine in Malaysia

Malaysia

Australia has been the number one wine exporter to Malaysia since overtaking France in 2001, and has an estimated market share of 45-50%.

Historically, Malaysians have not been great wine drinkers but consumption has increased significantly in the past five years. Economic prosperity, more relaxed government policies, modern trends, increasing overseas travel and education, and the desire of internationally-educated graduates to retain lifestyles adopted while living abroad have all contributed towards an increasing westernisation of lifestyles.

Muslim Malaysians do not drink alcohol, so the market for wine is principally made up of Chinese, Indians, foreign expatriates and tourists. Young Chinese in particular are affluent trend setters who have embraced wine and wish to learn more about it.

Wine in Malaysia

Red wine dominates the Malaysian market with almost 80% of volume sales. Cabernet (28%) is the most popular red variety followed by Shiraz (18%), largely due to the popularity of Australian wines. Chardonnay (36%) and Sauvignon Blanc (21%) are the most popular white varietals. White wine is generally preferred by females.

Wine is distributed mainly through supermarkets and hypermarkets. Some specialist wine shops operate, but volumes are limited. Both on-trade and off-trade channels are expected to grow in volume sales. Direct wine sales have also been increasing in volume.

Many restaurants and hotels host wine tasting sessions, leading to increased awareness and appreciation of wines in fine dining.
Market Requirements

The trading environment for wine is not difficult to negotiate, but it is important to follow labelling regulations as alcoholic beverages must be clearly identified for the protection of Muslim consumers. The Government imposes three taxes on wine imports.