Singapore wine market to reach $1billion by 2021

Singapore’s wine market will grow to reach US$1 billion by 2021, driven by consumption of premium still wine, despite the country’s punitive ‘sin’ taxes on alcohol, according to the data and research company GlobalData.

The country’s still wine category is forecast to grow at a compound annual growth rate (CAGR) of 5.2% between 2016 and 2021, while sparkling wine will also see a CAGR growth of 5.1% during the period, based on GlobalData’s forecasts.

The growth is a result of the country’s growing economy, individual’s high disposable incomes and a growing affinity towards premium wine products imported from countries such as Australia, France and Chile, according to the company.

“As the Singaporean economy continues to grow and consumer spending increases, consumers are likely to trade up to more premium offerings rather than mainstream or value wine products,” explains Ronan Stafford, Lead Consumer Analyst at the data company.

“Premiumisation opportunities are present across all wine categories, especially within the still and sparkling wine categories, given their strong growth rates.”

The fortified wine category, however, is likely to experience a slower CAGR rate of 3.2%, and for the next few years until 2021.

“Consumers within this category are less likely to trade-up to premium offerings, so manufacturers charging premium prices will need to thoroughly justify it to the consumer,” said Stafford.

Singapore, a country with a large Muslim population, levies ‘sin taxes’ on alcohol products, which will somewhat limit the growth of its wine market.

“The low private label presence highlights the premium wine preferences of local consumers in Singapore,” he added. “The fixed ‘sin’ tax on alcohol is also likely to affect the demand for cheaper private label wines, as consumers are likely to give preference to higher quality wines which better justify their higher price points.”

“Therefore, premiumization opportunities are rife within the market, given that producers need not worry about a significant presence of low-price private label products.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Marketing Manager

Amathus Drinks Plc
London, UK

Partner Manager - Managed On-Trade

Maverick Drinks
London, UK

Brand Manager

Hatch Mansfield
Ascot, Berkshire

Events Sales Executive

The Drinks Business Hong Kong
Hong Kong

Head of Sales

IWSC
London, UK

Logistic and Fullfilment - Whisky (and wine) administrator

Stilnovisti Ltd
London, United Kingdom // Dufftown, Keith, United Kingdom

Account Manager

Harviestoun Brewery
Field Based, UK

Buyer - Spain & South America

Enotria&Coe
London, UK

Events Sales Manager

Enotria&Coe
Field based - London or surrounding area

IBWSS China

Shanghai,China
5th Nov 2018

Exploring Beaujolais Wines Across The Years & Appellations

Manchester,United Kingdom
6th Nov 2018

Pink Rosé Festival

Cannes,France
7th Feb 2019
Click to view more

Rioja Masters 2018

Deadline : 26th October 2018

The Global Pinot Noir Masters 2019

Deadline : 1st November 2018

Click to view more

The Global Sparkling Masters 2018

As with all of the drinks business awards, our judging panel is comprised of Masters of Wine, Master Sommeliers and senior buyers making the competition globally renowned.

Champagne Masters 2018

Enter your wines into the Champagne Masters 2018, the only blind competition dedicated to Champagne in the UK.

Click to view more