This year, Singapore celebrates its 60th anniversary as an independent nation. The small nation state with a population of six million has earned the moniker as the Switzerland of Asia and been ranked the fourth most competitive financial centre by the Global Financial Centres Index (GFCI).
In 2023, the total value of wine imports, including re-exports, reached $980m, of which $436m was re-exported; Singapore serves as a transshipment base with wines re-exported to Southeast Asia and Greater China. Imports from top wine-producing countries include France (over 70%), Australia (10%), and Italy (3%).
Government taxes and sales regulations
There are a few things to know about selling wine in Singapore. The excise duty for wine is S$88 ($66) per litre by alcohol volume, while the Goods and Services Tax (GST) is 9%.
A standard bottle of wine of 13% ABV whose cost, insurance, and freight is S$100 will therefore attract an excise duty of S$8.58 and a GST of S$9.77.
Alcohol sales are government regulated, with retail outlets such as supermarkets, convenience shops permitted to sell alcohol between 7.00 am to 10.30 pm. Licensed restaurants and bars are allowed to sell alcohol until 12.00 am. Outlets are required to display notices notifying alcohol sales and consumption hours. There are also Liquor Control Zones, which include Little India and Geylang that have enforced stricter rules around public liquor consumption.
A look at the wine market
Singapore’s wine consumption is approximately 2.6 litres per capita. It has a strong premium wine segment (S$70+ per bottle) accounting for 23% of the market in 2023, and growth of 11.3% in the first half of 2024. Despite the promising data, the Government reported that sales of food and beverages fell by 2.8% in 3/25 compared to 3/24. This has had an adverse impact on the hospitality sector with 3,500 restaurant closures in 2024. The slowing economy, spiraling food cost, labour shortages and high rents are impacting profitability. Newcomers remain undeterred as 3,700 new outlets opened up.
Joel Lim, wine director at Sarika Connoisseur Group, which includes Michelin-starred Buona Terra says, “Business is unpredictable. We saw a drop in consumers in our fine dining concepts. Our casual Italian concept is doing very well though. However, wine consumption in general is declining in all outlets.”
Gerald Lu founder of Praelum Wine Bistro and President of the Sommelier Association of Singapore adds, “Average spend has gone down and people are defensive about their disposable incomes. Corporate spend too has come under heavy scrutiny, hence a sizeable shift in revenues.”
Exacerbating the F&B slowdown is Singaporeans’ penchant for travel. A strong currency has made overseas travel even more attractive. For the budget conscious, Johor Bahru across the border is a favourite destination for short breaks to shop and visit restaurants. In 2024, Singapore immigration (ICA) cleared about 230m travellers. The trend is set to continue in light of the 2026 projected opening of the Johor Bahru – Singapore Rapid Transit System (RTS) reducing the trip to five minutes.
On-trade options
Given the difficult environment, the on-trade has had to work harder to encourage clients to drink, and some of the changes have worked to the benefit of consumers. Joel Lim says, “Slashing prices helped. Gone are the days of two to three times markups on wines. Offering a more approachable wine list with education should be the way to go.”
Moreover, a quick Google search will yield numerous options for consumers looking to BYO. In the past it was Chinese restaurants that offered corkage friendly options. Now there is a myriad of choices.
The high cost of fine wines from first growth Bordeaux to Burgundies means that new wine drinkers may be priced out of the market.
The high cost of fine wines from first growth Bordeaux to Burgundies means that new wine drinkers may be priced out of the market. Henry Teoh Director of Strategy at Vinum looks for creative options. He believes, “Exclusive distributors for these wines can allocate a portion of these wines, especially for ready to drink vintages to restaurants at a friendly price with restaurant selling it at a specific price range. This allows newcomers to get a sense of how these wines taste and builds up brand following.”
There is also a silver lining, with the slowing of the wine market. Teoh says that “portfolio Burgundy blue chips prices have fallen by 20-30% versus the peak, so our serious buyers recognise buying opportunities.” Bordeaux, Burgundy and Grandes Marque Champagne have been “steady sellers” with the sweet spot ranging from “S$200-$1000.”
The younger generation
With an ageing population drinking less, the wine industry is grappling to understand the drinking habits of the younger generation. Gerald Lu says, “GenZ requires a lot more personal attention to their needs and wants. As a somm it’s about selling an experience. Visual aids, telling stories, and even organising wine trips all become part of the sommelier role.”
GenZ requires a lot more personal attention to their needs and wants.
Joel Lim sees a growing trend of non-alcohol drinkers among the young. Health is often cited as one of the key reasons. His outlets now carry a small range of non-alcohol beverages including artisan kombuchas and sparkling tea.
At 67 Pall Mall, Head of Wine Richard Hemming MW says that about 10% of the membership is under 35 years. To attract younger members, the club offers a reduced membership rate. When it comes to taste, Hemming notes that younger members tend to be more experimental. However, “All members have a strong interest in classics, regardless of their age.”
Other trends
Natural, and organic wines
Ian Lim founder of Wine RVLT wine bar is a pioneer in proselytizing biodynamic, natural, and organic wines. With the growing knowledge of natural wines among wine drinkers, his customers readily ask for orange and petillant naturels. The sustainability message resonates particularly with younger drinkers. Influencer Veronica Chia says drinkers want “to know what they are putting in their bodies.” Both Chia and Lim agree that compared to conventional wine, organic and natural wine remains a niche market.
Chinese grape wines
It is undeniable that the range of wines and diversity has increased exponentially these past few years. Ang Leong Huat, a 100-year-old family business, has been importing Chinese spirits and rice wines since 1925. The third generation added Chinese grape wines to the portfolio. Initially, large producers such as Great Wall, Changyu were selected and in 2005 boutique winery Grace Vineyard from Shanxi was added. Current generation Ang Chien Sern says that initially there was a great deal of scepticism due to food safety concerns. Today there is a change in perception as Chinese wines have been winning awards in international wine competitions. Ang says that five years ago there were only a handful of importers and now there are ten. Challenges remain due to the high cost of the wines compared to other wine region equivalents. To compete, Ang has reduced markups. In addition, he organises three to four wine tastings a year to help promote and provide education about the wines.
Lesser-known appellations
Darric Seow founder of DS Cellars, a boutique Italian wine importer sees a growing trend for lesser-known appellations beyond Barolo and Brunello. Regions such as Etna Rosso, Valtellina Superiore are now garnering interest amongst his clients. To maintain a sense of exclusivity, he micro imports and sales are allocation based. Moreover, wine dinners, master classes by invitation and the use of social media, helps “maintain brand prestige, share exclusive content and build soft trust with potential customers.”
New ways of addressing customers
Social media continues to play an important role in expanding wine culture locally. Chris Lee a Key Opinion Leader (KOL) with 53,000 followers says “I find a lot of new wines through social media. It is a great resource for wine exploration.”
Education and learning remain a motivation for social media followers. Lee’s followers opt for tasting notes. Ian Lim shares a differing opinion. “Video and reels with micro information works. Pictures with captions are not so effective now.”
Veronica Chia advocates wine producers to “speak to the lifestyle, not just the liquid.” Chris Lee concurs, adding “the younger group of wine drinkers are more open and curious, they do not look to collect wines and it is more about the experience.”
This ethos is carried through at 67 Pall Mall. Hemming is enthusiastic as his mission is “to bring together everything that the wine lover wants. But we can extend to broader activities.” The club organises live music events and wine quizzes, and even a bespoke concierge service.
A regional wine hub
Despite lingering global uncertainties, Singapore remains an attractive regional hub for finance, tourism, and trade. Gerald Lu says, “The rise of a strong middle class in Asia bodes well for hospitality, tourism, and MICE (meetings, incentives, conferences and exhibitions) activities in our region.” Singapore’s connectivity with regional ASEAN neighbours remain significant.
Vinum has capitalised on Singapore’s strategic location. With increasing transparency of fine wine pricing, it has added value to clients by owning their own bonded warehouse in Singapore. Teoh says this is especially advantageous for last-minute deliveries. High frequency of air shipments from London to Singapore reduces delivery time and enables Vinum to thrive in this challenging environment.
Singapore is set to play a pivotal role as host country to trade fair such as ProWine and Vinexpo. This year, Vinexpo Asia expects 1,100 exhibitors from over 20 countries. Rodolphe Lameyse CEO of Vinexposium is bullish about Singapore, saying it’s the place, “where growth happens.”
- Ang Leong Huat
- Artisan Cellars
- Culina
- Crystal Wines
- DS Cellars
- Galiena
- Grand Vin
- Malt & Wine Asia
- Monopole
- Pivene
- TWDC
- Vinicole
- Vinum
- WEA Wines
