Singapore Boom

Vinexpo’s announcement that it will revive its Asia event in Singapore in 2023 places the evergreen, cosmopolitan city in the limelight.

Confucius said, “The orchid grows where others cannot,” and it is fitting that Singapore was chosen as the location for Vinexpo Asia’s reincarnation in the region. Centrally situated and boasting some of the world’s best gastronomy, Singapore has a vibrant dining out culture. As the gateway for wines into Southeast Asia, South Korea, Japan and China, the city’s wine scene blossoms with engaged, erudite drinkers and F&B professionals.

“Singapore stands out as an obvious choice for serving the interests of the entire Asia-Pacific region,” said Rodolphe Lameyse, CEO of Vinexposium.

Vinexpo Asia will follow in the footsteps of another successful wine industry event. In October 2022, the Wine Pinnacle Awards kicked off at Resorts World Sentosa. In his opening speech at the event’s Wine Symposium, Mr. Augustin Missoffe, Managing Director Asia-Pacific for SOPEXA, said Singapore had attained a 25 percent share of the alcohol beverage market in 2022, with wine revenue reaching USD 643.8 million, and consumption volume climbing to 10 million litres. Research by the IWSR for Vinexposium forecasts an annual rate of volume growth in Singapore of 4 percent (2021-2025).

“There’s been a lot of buzz around Vinexpo,” said Matthew Lamb, Group Beverage Manager at Lo & Behold. “It shines an international spotlight on Singapore and its wine industry, which looks poised for continued growth.”

Geographically, Singapore is a small country, but it punches above its weight in almost every area. At the start of the millennium Singapore, like many countries in Asia, faced the issue of an ageing population. It turned this around through a range of investments and economic policies, including substantial immigration that grew its population from 1 million to 5.64 million people (3.6 million adults).

Hongkongers are heavily represented in the latest wave of immigrants, with many corporations and financial institutions consolidating their Asian headquarters in Singapore due to the political and pandemic uncertainty overshadowing Hong Kong.

The MBS effect

Singapore’s hospitality market really took off a decade ago thanks to major integrated resort openings that attracted visitors from all over Asia and abroad. In particular, Marina Bay Sands significantly expanded the wine trade by creating new restaurants and attracting Michelin-star chefs and sommeliers.

Annette Scarfe MW attributes much of the wine industry’s growth and success to the resort. “Singapore has become one of the most open wine markets in Asia,” she told Wine2Wine Verona (November 2019). “The breadth and depth of wine in Singapore is enormous.”

Singapore’s older generation is fixated on red wine and shares a mutual love of Burgundy with Hong Kong, but that’s where the similarities end. While Hong Kong is Bordeaux and Burgundycentric, Australia has 30 percent market share in Singapore, and Chile and France tousle for second and third positions.

Julien Drevon CEO and co-founder of Pivēne, told the Wine Symposium that 1.5 million Singaporeans drink wine monthly, consuming around 13 million litres annually. (Beer is more popular at 133 million litres per year.)

Singapore’s cost of living is high and wine’s expense is a factor in purchasing decisions. The average retail bottle costs $48 for French wine, $42 for New Zealand wine and $31 for Australian and Italian wines, Drevon said.

Taxes and duties compound high importation costs making premium wines better value for money. “Singapore is not a good market for entry level wines,” Scarfe affirmed.

While high alcohol taxation might suggest potential for lowno alcohol options, Singapore consumers are not ready yet, Scarfe remarked. The higher the alcohol content, the better the perceived value, she said.

Swapnil Bapat

Excellent infrastructure is required to keep wines in optimal conditions in the hot climate. They must travel in refrigerated shipping containers, be stored in purpose-built warehouses and remain in air conditioning all the way to their final destination, whether that’s Singapore, Malaysia, Indonesia or Thailand.

High prices are one driver of premiumisation; another is the calibre of customers. People know what they want and purchase at specialty stores. Twenty to thirty-somethings are drawn in by promotions and discounts, but lifestyle is a more prominent cue to buy. Singaporeans love to eat and love to shop and there is a strong demand for wine dinners and events that incorporate food and wine pairing.

“Singaporeans love the opportunity to sit down with a Master of Wine and discuss the wine. They want to come and learn,” Scarfe said, speaking from experience as an event host.

Lamb agrees. “Food and wine pairings are a gateway for lesserknown explorations … It used to be that people wanted parallels, for example, ‘This variety is somewhat like pinot noir.’ Now, people are more open to an array of expressions and keen to explore.”

There’s been a lot of buzz around Vinexpo. It shines an international spotlight on Singapore and its wine industry, which looks poised for continued growth.

Cathay HK IWSC judge and WSET Business Development Manager Asia-Pacific, Ling Cheong said Singapore’s WSET market saw impressive triple digit growth in the past three years as people used the lockdowns to scrub up on their wine knowledge. Even before the pandemic, Scarfe said there was greater demand from consumers for wine education than from the wine trade.

“A lot of people took the pandemic as a time to upskill their wine knowledge,” Lamb said. “That is evident in dining room conversations between our staff and guests.

Matthew Lamb, Group Beverage Manager at Lo & Behold

“At the high end, people are receptive to recommendations and suggestions from staff, and there is growing interest from the midtier and casual dining crowd for something new.”

Peer reviews, educator recommendations and awards are another cue to buy wines both on- and off-premise. Convenience also plays a part. People don’t have cars so delivery is important if there’s no wine store close to home. Ecommerce is the largest retail growth area in Singapore as people seek the convenience of online stores and delivery services.

Generation inspiration

While the classics hold true among established drinkers, younger people are more adventurous. The sparkling wine category, while only representing a small proportion of the market (around 8-9 percent), is growing steadily. Prosecco alone is up 30 percent, driven by Singapore’s penchant for bottomless brunches, and champagne is on the rise.

“Over the last 6 months, demand for champagne has been incredible across both the Grand Marques and growers,” Lamb said.

Singaporeans love the opportunity to sit down with a Master of Wine and discuss the wine. They want to come and learn

Awareness of organic and biodynamic wines is rising, but Singapore’s take up lacks the fervour of South Korea’s. “There is interest in organic, biodynamic and natural wine styles along with a general sense of exploration and wanting to try a new variety, region or style people haven’t previously heard of,” Lamb said.

“In the past three years, even amid ever-changing restriction measures, there has been incredible growth of sommelier talent and professionalism in the industry, coupled with a growing range of wines and customer interest.

“The support Singaporeans have shown to F&B has been energising and a great push forward to the industry as a whole.”

Singapore is Asia’s good news story, unfolding like an orchid with just the right amount of caution to enable the wine industry to get back to work safely. Greater things are coming as it establishes itself further within the context of Southeast Asia and globally.