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Your email address will not be published.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 *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Sales Advisor

The Whisky Exchange
London, UK

Customer Services Administrator

Speciality Drinks
London, UK

Trading Administrative Assistant

Vin-Exchange Ltd
London, UK

Events Sales Executive

The Drinks Business Hong Kong
Hong Kong

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
West Midlands, UK

Sales Executive

Wine Source
London, UK

Sales – North East England

Liberty Wines
London, UK

Account Manager

Grape Passions Ltd
Hertfordshire, UK

Account Manager Business Development

Gourvid Limited
London, UK

Pink Rosé Festival

7th Feb 2019

Wine Paris

11th Feb 2019
Click to view more

The Global Fortified Masters 2018

Deadline : 25th January 2019

The Global Pinot Noir Masters 2019

Deadline : 1st February 2019

Click to view more

Rioja Masters 2018

View Results

The Global Beer Competition

View Results

Click to view more