Wine market in Southeast Asia
By 2009-7-13 10:37:48
Singapore, Malaysia, Thailand and Vietnam have a combined population of nearly 180 million. They are a mixture of developed and developing countries and range from one of Asia’s wealthiest countries – Singapore – to one of its poorest – Vietnam.
- Malays are predominantly Muslims who, for religious reasons are not permitted to consume any alcoholic drinks. This limits the size of the market for wine to just over one third of the total population, however the Chinese population forms the wealthiest group of consumers and offers a solid target base for imported wines.
The wine market is still young. Consumption of red and white wines is at a ratio of approximately 60:40. Wine is usually not consumed at home. It is a social drink usually consumed on special occasions.
- Singaporean wine consumers are mainly in the middle to upper income bracket and tend to be mostly Chinese, aged between 25 to 50 years old. More men than women drink wine.
The Singapore wine market is made up of 10 percent sparkling wine, approximately 65 percent red and 25 percent white. - Wine has a 20 percent share of Thailand’s alcoholic beverage market, with 83 percent of all wine consumed being red. Consumption is still generally limited to expatriate business people and tourists.
Thai consumers lack detailed knowledge about wines and many consider red wine to be the only ‘real’ wine. However, acceptance of wine as an everyday drink is increasing and fine dining with wine is growing in popularity. - Overall wine consumption in Vietnam is still very small. Most Vietnamese do not drink grape wine because they have not acquired a taste for it.
Imported wine is perceived as a luxury and demand largely comes from expatriates and tourists. Vietnamese who have acquired a taste for wine generally prefer Old World wines.
It is important for New Zealand wine exporters to consider leveraging on Singapore’s position as a regional distribution hub for wines by developing partnerships with distributors who have strong regional distribution networks.
- New Zealand has a good reputation in Singapore. Wine growers can exploit this, and the country’s clean and green image, to differentiate their wines. New Zealand is known for its high quality wines.
There is a growing knowledge in Singapore of New Zealand wines. However, compared with Australian and French wines, there is still relatively low awareness. - The Malaysian wine market, although small, is very competitive and according to importers saturated. Entry into the Malaysian market is fairly difficult as there may be resistance among existing major distributors to take on another label.
In-market activities such as wine tastings and seminars have helped market entry for a number of competing suppliers. - Awareness of New Zealand wines in the Thailand market is very limited, but it is slowly increasing. There are a small number of importers of New Zealand wines, but as the popularity of wine in Thailand is still low, importers and wine exporters will have to work together to educate consumers.
- Overall wine consumption in Vietnam is very small. Most Vietnamese have not acquired a taste for grape wine.
Vietnam's distribution channels are highly fragmented and the country has only a handful of importers experienced enough and with the capability and expertise to import and distribute wines.
From www.nzte.govt.nz