Wine - Singapore

The Wine market in Singapore has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and unique local special circumstances.

Customer preferences: Singaporean consumers have developed a growing appreciation for wine, with an increasing number of individuals incorporating wine into their social and dining experiences. Wine is no longer seen as a luxury item reserved for special occasions, but rather as an everyday beverage choice. This shift in consumer preferences has led to an increased demand for a wide variety of wines, ranging from affordable options to premium and rare selections. Additionally, there has been a growing interest in organic, biodynamic, and sustainable wines, reflecting a greater emphasis on health and environmental consciousness among consumers.

Trends in the market: One notable trend in the Singaporean wine market is the rise of e-commerce and online wine retailers. With the convenience of online shopping and the ability to compare prices and reviews, more consumers are turning to online platforms to purchase their favorite wines. This trend has been further accelerated by the COVID-19 pandemic, which has led to a surge in online shopping across various industries. As a result, traditional brick-and-mortar wine shops are facing increased competition and are adapting by expanding their online presence. Another trend in the Singaporean wine market is the growing popularity of wine appreciation and education. Wine tastings, workshops, and courses have become increasingly common, allowing consumers to learn more about different wine regions, grape varieties, and production methods. This trend is driven by a desire to enhance the overall wine-drinking experience and make more informed purchasing decisions. Wine events and festivals are also gaining traction, providing opportunities for consumers to explore and discover new wines.

Local special circumstances: Singapore's status as a global financial hub and tourist destination has contributed to the growth of its wine market. The city-state attracts a diverse international community, including expatriates and tourists, who bring with them their own wine preferences and consumption habits. This multicultural environment has created a vibrant wine scene, with a wide range of wine options available to cater to different tastes and preferences. Additionally, Singapore's high-income population and strong purchasing power have made it an attractive market for wine producers and distributors.

Underlying macroeconomic factors: Several macroeconomic factors have played a role in the development of the wine market in Singapore. The country's stable economy, favorable business environment, and high standard of living have contributed to the growing affluence of its population. As a result, consumers have more disposable income to spend on luxury goods, including wine. Furthermore, Singapore's status as a free trade hub and its low tax regime have made it an attractive destination for wine imports, leading to a diverse selection of wines available in the market. In conclusion, the Wine market in Singapore is experiencing growth due to changing customer preferences, emerging trends, and unique local special circumstances. The increasing appreciation for wine, the rise of e-commerce, the popularity of wine appreciation and education, Singapore's multicultural environment, and favorable macroeconomic factors have all contributed to the development of the market. As the wine market continues to evolve, it is expected that consumer demand for a diverse range of wines and wine-related experiences will continue to drive growth in the years to come.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.