Singapore wine market resists

The Vinexpo / IWSR market study revealed during a press meeting in Singapore last Tuesday revealed, that despite a slowing economy, increasing taxes on wines and spirits +25% in 2014, and decreasing tourist numbers (-20% Indonesians, -10% New Zealanders and Australians, 500 000 fewer visitors from China) the wine and spirits market grew slowly, +1.4% between 2013 and 2014. A reason therefore is the growing population with more young people reaching the legal drinking age. An additional 10% of the population will be allowed to drink alcohol by 2019.  In 2014 Singapore population totalled 5.5 million inhabitants. However, high taxes make Singapore one of the most expensive places to buy wines and spirits, the average bottle went up from SG$70.00 to SG$88.00 in 2014.

Singaporeans favourite wine is by far red wine, which represents 70% of the still light wine market. Singaporeans consumed 645 000 9-litre cases of still red wine in 2014, a trend which will remain stable on the 2019 horizon. Rosé wine which starts on a much lower level grew by +24.2% between 2019 and 2014 and will continue to grow by + 3.5% between 2014 and 2019. White wine which holds the second rank with 251 000 cases consumed in 2014 will continue to grow, +1.2% on the 2019 horizon.

The import market is dominated by Australia which holds a 38.5% market share. Chile comes second with 16.5%. Chilean imports have been boosted by a weak US $ + 71% growth between 2010 and 2014.  France with a 16% market share holds the third rank in 2014. The current ranking is forecast to remain stable on the 2019 horizon.

Despite the slowing down tourist industry Champagne volumes remained stable at around 56,000 9-litre cases since 2012. The segment depends mainly on tourists and expats. Special events such as the formula 1 race night give important boosts to the category. However the duty paid value of sparkling wine growth rate +1.2% is not as strong as the growth in value +9% which indicates, that Champagne is growing stronger than other sparkling wines.

In the lower price categories Prosecco benefits from the popularity of Italian restaurants (there are more than 250 of them in Singapore).  The whole sparkling wine category is expected to grow by 4.7% in volume on the 2019 horizon.

 

Niche spirits consumptions are growing strongly

Despite a decline in consumption of 7500 9-litre cases of whisky between 2013 and 2014, whisky remains the favourite spirit of Singaporeans. The category is forecast to grow by +13.8 % on the 2019 horizon.

Cognac / Armagnac which hold the second rank, will continue declining over -5.6% between 2014 and 2019, which is mainly due to decreasing numbers of Chinese tourists. Gin and Tequila which respectively hold the 4th and 5th places in the spirits’ ranking and will be increasing between 2014 and 2019. Gin is forecast to grow by +27.7% and Tequila by +17%. This increase will be driven by the super-premium gin category, mostly in the on-trade.