Emerging markets: younger demographics drive premiumization

The long-term and consistent increase in value of fine wine has been driven, among other factors, by secular demand growth for fine wine in emerging markets, and by an increased interest by younger demographics. According to consumer research entity Wine Intelligence, these two phenomena are converging with a third one: premiumization of wine consumption.

While in established markets such as the US and the UK, one third of premium drinkers are aged 55+, in growth markets such as Brazil, South Korea and China, younger demographics dominate premium wine consumption. In Brazil, there has been since 2017 a sustained increase in average spend per bottle for off-trade occasions. Importantly, it seems that COVID-19 has also supported premiumization, as consumers have been willing to spend more money on quality bottles of wine for at-home consumption. With the penetration of fine wine drinking increasing in Brazil, Juan Park from Wine Intelligence notes that “These consumers are typically between 30-40 years old and are increasingly drinking for occasions at home with friends”.

In South Korea, the government in 2020 eased regulation on the purchase of alcohol online. A year after, one in five South Korean wine drinkers buy wine online. According to the research, buying fine wine online in South Korea is skewed towards the educated urban younger drinkers.