Wine market in Southeast Asia

• 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.
• 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.
• Indonesia's population is 90 percent Muslim, which means that the country's alcoholic beverages sector is small relative to its large population. However, wine consumption is growing among affluent Indonesians, mainly in Jakarta and the Hindu majority tourist island of Bali. The alcoholic drinks industry is tightly regulated by the government for moral and social reasons and in a number of regions the sale and consumption of alcohol is banned.
• Shifting demographics and rising incomes are driving the demand for alcoholic beverages in the Philipines. Young people below the age of 18 have easy access to alcohol, as drinking laws are not strictly enforced. Although drinking beer is an important part of the country's social and cultural life, consumption of wine and flavoured alcoholic beverages (FABs) is increasing.

Getting your product into market

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.
• 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.
• In Indonesia, the government-owned importer for both duty free and duty paid alcoholic beverages submits quotas to the Indonesian Government for approval twice a year and the quota amount is based on orders made by distributors. Market entry for New Zealand exporters is best made through these distributors or their sub-distributors.
• In the Philipines, it is critical to work with a well established and experienced wine importer who can promote or support the New Zealand brand/label particularly in its entry phase.