What are the alcoholic beverages that the 2030 generation is currently enthusiastic about?
It has been revealed that domestic wine imports have decreased for the second consecutive year. This trend can be attributed to the shifting preference among the young generation, especially the 2030 demographic, towards the whiskey craze. Additionally, the decline in the "home drinking" trend after the COVID-19 pandemic has also played a part. In response to this trend, wine import companies are taking various measures, such as expanding their import sources, increasing premium wine varieties, and diversifying distribution channels to restaurants and other establishments.
According to customs data from the first half of this year, wine imports reached 31,300 tons, showing a 10.8% decrease compared to the same period last year. This decline continues from the previous year's 13.2% decrease during the first half, making it a two-year consecutive decline. If we compare it to the peak recorded during the first half of 2021 (44,000 tons), there has been a significant drop of 22.5%. Moreover, the wine import value during the first half of this year also declined by 7.9% compared to the same period last year, reaching 274 million dollars (approximately 3,470 billion Korean won). Analyzing the annual wine import data, we can see that wine imports reached their peak in 2021 with 76,575 tons, as the import figures steadily increased from 43,495 tons in 2019 and 54,127 tons in 2020. However, as the pandemic started to affect significantly, the wine import figure dropped to 71,020 tons in 2021, showing a 7.25% decrease from the previous year.
Conversely, the whiskey market experienced a completely opposite trend. During the first half of this year, whiskey imports reached 16,900 tons, showing a remarkable increase of 50.9% compared to the same period last year. This follows the trend of the previous year when whiskey imports grew by 63.8%. This indicates that whiskey imports have been growing at a rate of more than 50% for two consecutive years. In terms of import value, whiskey imports reached 130 million dollars during the first half of this year, showing an impressive 71.1% increase compared to two years ago. The current trend indicates that premium whiskey products are gaining favor over lower-priced wine options.
The decline in wine imports can be attributed to the rapid changes in liquor trends. During the COVID-19 period, the domestic wine market experienced a significant surge in demand due to the "home drinking" trend, where people enjoyed alcohol at home. However, with the easing of the pandemic and the return of outside dining and drinking, the share of "home drinking" has decreased. A representative from a liquor company mentioned that the sudden surge in wine imports during the pandemic created a bubble that has now subsided. Despite the decrease in wine consumption, it is still significantly higher than pre-COVID-19 levels.
The whiskey trend, particularly among the MZ generation (Millennials and Generation Z), has also posed challenges for the wine import industry since wine and whiskey are strong substitutes. Consequently, wine import companies are diversifying their distribution channels and product offerings. The growing popularity of whiskey among the younger generation is driven by their desire to find unique and distinctive alcoholic beverages. Therefore, the industry is responding by expanding their range of relatively high-priced products and diversifying the countries from which they import wine.
Moreover, the target consumer base for wine importers is also changing. While they primarily targeted the "home drinking" trend over the past three years, they are now shifting their focus towards restaurants and bars to widen their distribution channels. It is believed that inexpensive and common wines cannot capture the attention of both restaurants, which emphasize wine pairing with food, and wine enthusiasts who prefer enjoying wine at home. With the increasing number of wine import companies, the competition among them is expected to become fiercer. As the liquor market relies on a limited number of consumers, the overall market size does not experience rapid growth every year. Therefore, an increase in the consumption of one type of alcoholic beverage may lead to a decrease in the consumption of others.