Wine and spirits upswing forecast in Asia Pacific from 2020 says Vinexpo/IWSR Report

London, January 15, 2020 – China and Australia will lead a three-year recovery for value of still and sparkling wines in the 19 Asia Pacific markets from this year, forecasts a detailed report from Vinexpo/IWSR.
Spirits, dominated by local products, will similarly show volume and value growth, especially for imported premium and super-premium brands, the report shows.

The recovery in both sectors follows declines across the region which began in 2018. Still wine in the region accounts for 95% of volume of which China holds a 55% volume and 48% value share, while Australia in second place, accounts for 20% and 15% respectively.

China will lead all markets with CAGR of nearly 4% to 2023 when the total value of the region’s sales of still and sparkling wines will have risen to more than $34 billion. By 2023 the Chinese market is forecast to reach a value of nearly $18 billion (up from $14.8 billion in 2018) while Australia will edge up from from $5.5 billion to $5.6 billion.

Sparkling wine is showing a lot of room for growth led by Champagne and Prosecco. Total value has risen consistently over the decades and is forecast to reach more than $3.6 billion by 2023.
Australia is the largest market in the region for sparkling wine, ahead of Japan, China, New Zealand and South Korea. However, in the run up to 2023, growth in China is likely to outpace the two leaders.

Spirits
Dynamism across the higher-priced spirits segments in the region – mostly imports - will intensify in the run up to 2023. Though small compared with mostly value-and-below local spirits, standard and premium spirits are expected to see growth of 3.5% and 2.6% respectively, while premium and above should grow by nearly 6%.
Total spirits volume is slated to hit more than 2 billion 9-litre cases by 2023. By then, consumption of imported spirits in Asia-Pacific is expected to reach 56.6 million cases.

Whisky (both Scotch and other whiskies) is expected to sustain annual growth of 8%. Within the whisky category, Scotch leads by volume and accounts for more than a third of imported spirits. However, Other whiskies (non-Scotch, US, Canadian, Japan, Irish) will lead growth.
India is the region’s largest consumer of Scotch where growth of around 10% is expected over the next three years.
Gin is growing fast led by the Philippines and Australia. India is the only market expected to struggle where consumption could fall by up to 5%. By comparison, Australia and China are set to grow volume by more than 12% each.

About Vinexpo
In an initiative spearheaded by the Bordeaux-Gironde Chamber of Commerce and Industry,
VINEXPO came into being in 1981 and today is the leading events organiser in the wine and spirits sector. In 39 years, Vinexpo has gained a unique understanding of the market and gathered a huge global network of influential distributors. The brand now organises events in five cities worldwide (Bordeaux, Hong Kong, New York, Shanghai and soon Paris), in addition to a roadshow, Vinexpo Explorer. Every year, the group also publishes one of the most comprehensive market
studies on global wine and spirits consumption: the Vinexpo/IWSR report.

Vinexpo has obtained ISO 20121 certification. Vinexpo runs a CSR (Corporate Social Responsibility) initiative through a number of measures aimed at reducing its environmental impact and optimising local, social and economic benefits. Vinexpo is demonstrating its commitment to group-wide performance by ensuring its business is managed in compliance with ISO 20121 certification on “Event sustainability management systems”.

About The IWSR
The IWSR is the leading source of data and analysis on the alcoholic beverage market. The IWSR’s database, essential to the industry, quantifies the global market of wine, spirits, beer, cider and mixed drinks by volume and value in 157 countries, and provides insight into short- and long-term trends,
including five-year volume and value forecasts.

More information:

Camille Malavoy, Senior Press Officer, Vinexpo Bordeaux Tel: +33 (0)5 56 56 01 69 / +33 (0)6 31 00 50 41 Email: presse@vinexpo.com

Peter Ward, VOICE,UK: +44 (0)7795 20 44 55 Email: peter.voicepr@gmail.com