Wine continues to decline in APAC, but at a slower rate
The wine industry is by no means out of the woods in the Asia Pacific region (APAC), but new estimates suggest that the rates of decline are beginning to slow, spelling somewhat positive news for the sector.
The wine industry has found itself in a tricky spot over the last few years, with consumption decreasing globally.
Wine endured another difficult year in the Asia Pacific region in 2024, according to IWSR, with volumes down by 4%. However, this is a significant improvement on the year prior, which recorded an 8% year-on-year decline.
Still wine and other wines shrank by a combined total of 16m cases last year, registering volume declines of 5% and 4% respectively. Champagne was also in the red, with declines accelerating in Asia to -8% in 2024.
However, other sparkling wines grew 1% last year in APAC after a difficult year in 2023.
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Wine producers are going to have to weather the storm until the end of the decade before the situation looks to improve. IWSR has predicted that volumes will continue to decline to 2029, though at a progressively slower rate.
China is chiefly responsible for still wine’s struggles, with volume compound annual growth rate (CAGR) down 2% over a five-year period. Japan (-1%) and Australia (-1%) are also predicted to see declines. However, growth of still wines in the Philippines, India, Thailand and Vietnam offer some positivity.
Sparkling wine offers a brighter picture, particularly in Australia which offers the greatest volume opportunity over the next five years, with a volume CAGR of 2% 2024-29. Demand in China is also expected to grow, with CAGR predicted at 6% over the same period, IWSR has said. The same goes for India (+8%) and Japan (+1%) over the same five-year period.
As for the whole beverage alcohol sector, India and Southeast Asia show the greatest opportunities in the next few years. China tells a very different story with the market contracting significantly across the majority of categories. Read more here.
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