Author: Nimmi Malhotra
From the small and mighty Singapore to the biggest drinks economies of Japan and China, Asia’s alcohol trends are shifting fast. Singapore-based wine communicator Nimmi Malhotra examines eight key markets and trends across the region.
It should come as no surprise that Asia is far from a monolithic alcohol market but many distinct ones, each with its own dynamics. Cultural traditions, religious norms and regulatory regimes differ across the region, shaping everything from consumption patterns and consumer profiles to channel selection. In some countries, drinking is woven into business and social rituals; in others, it is restricted and discouraged. Retail systems vary just as widely, from the ubiquity of convenience stores in Japan to tightly controlled distribution in Indonesia.
These differences shape how alcohol is consumed, where it is sold and which categories grow. Trends follow similar patterns. Most are geographically uneven and exhibit in markets with similar infrastructure, regulation and maturity. For instance, China leads in online commerce and social media, but the same strategy does not translate to South Korea or Taiwan, where online alcohol sales are either heavily restricted or banned.
Industry research from IWSR and Euromonitor emphasises the need for market-specific strategies rather than regional generalisations. To treat Asia as one market is to ignore the forces that shape it. Unifying elements run across these markets. They’re not enough to make Asia a single market, but enough to make it a readable one.
Let’s begin with geography. Southeast Asia’s 11 largely tropical nations – the Association of Southeast Asian Nations (ASEAN) bloc of Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines, Myanmar, Cambodia, Laos, Brunei and Timor-Leste – share a climate, a maritime orientation and a trading history that made them crossroad cultures long before colonisation formalised those connections.
These societies are not always built around a single dominant religion, ethnicity, language or cultural identity but around the coexistence of many. This matters commercially because it means there is no single consumer profile. The Chinese community spread across Asian cities has deep spiritual and gifting traditions. The Muslim majority of Indonesia does not drink. Traditionally, Buddhists do not drink alcohol either, yet consumption in Thailand, a predominantly Buddhist nation, has increased in recent years owing to burgeoning tourism.
But it also means that Asian societies, which have always accommodated multiple identities, are more receptive to outside influence. We are culturally attuned to adaptation and readily adopt new alcohol formats, including Korean ready-to-drink (RTD) formats, the Japanese cocktail aesthetic, and Western spirits and wine.
Across Southeast Asia, beer and spirits are dominant categories, a function not just of taste but of heat, occasion and price accessibility.
East Asia presents a different configuration. Japan, South Korea, China and Taiwan share a history of intensive cultural exchange that has produced recognisable similarities in social hierarchy, family structure and collective identity.
Drinking in East Asia has historically been a vehicle for relationship-building, status expression and social obligation, rather than pure recreation. This gives premium alcohol categories a structural role in social and business life, particularly through their connection to trust-building and network formation.
Yet that picture resists simplification. China’s sheer scale distorts any regional generalisation. Japan, Asia’s most sophisticated wine market, is experiencing declining consumption and is morphing into a buoyant NOLO market. South Korea’s cultural exports of K-pop, K-drama and K-food are actively reshaping consumption behaviours across both regions.
How do these factors influence our world of wine and spirits? To highlight trends and movement across the region, let’s explore eight key markets: four from Southeast Asia, including Singapore, Thailand, Vietnam and Malaysia; and four from East Asia, including South Korea, Taiwan, China and Japan.
Trend 1: Premiumisation is alive but fragmented
The most consistent trend across eight markets is premiumisation. It has been the driving force of our industry for many years across all categories, from beer, wine, spirits, and even non-alcoholic drinks. While premiumisation growth has all but stalled in the West, as noted by the Silicon Valley Bank Report 2026, Asia still offers pockets of growth.
Premiumisation varies across Asia based on the market’s developmental stage. In developing markets, it is driven by the expanding affluence of the middle class and increased urbanisation. Growth is slower across East Asia and Singapore, where consumers were already drinking premium but are feeling inflationary pressures and shifting discretionary spending. Nevertheless, they continue to seek premium experiences and act judiciously by demanding a more detailed value proposition and justification.
The takeaway: Consumer engagement is the key. For producers, this is the moment to connect with Asian consumers across multiple channels, including social media, emphasising craft, provenance and above all, authenticity, rather than relying on price as a sign of quality.
Singapore-based Master of Wine Richard Hemming offers pointed advice for premium wine producers, “There is only one unique thing that producers have, and it is not terroir – everyone has terroir; it is their own human story. Using that to connect with people is the best way to say something original.”
Trend 2: Urbanisation as the engine of wine and spirit growth
Asian cities are expanding. By 2030, Asia could account for two-thirds of the global middle class, according to the Brookings Institution. Consider Vietnam, where urbanisation has risen to 40%, as people move to central cities like Hanoi and Ho Chi Minh City. In China, urbanisation includes the development of Tier 2 and Tier 3 cities like Chengdu and Hangzhou. Other countries witnessing rapid urbanisation include India and Indonesia.
“Urbanisation brings higher incomes, availability and curiosity. The ‘new money’ consumers are shopping for brands, whereas ‘old money’ consumers are looking for value,” says Rob Temple, director of SinoWine. When people move to cities, their income rises, their exposure to international brands increases, and their social occasions multiply. In time, each of these changes contributes to increased sophistication in wine and spirit sales.
The takeaway: “The impact of urbanisation is a gradual process. There is a constant flow of newly wealthy consumers in cities. They need constant guidance and exposure,” Temple says.
Trend 3: Local identity is taking hold
The craft spirit movement is gaining momentum across Asia, driven by a focus on local ingredients and artisanal production. Boutique brands are carving out space with products rich in narrative and identity. This is evident in Vietnamese botanically distinctive gins like Song Cai Distillery, Samai Distillery in Cambodia, and Taiwan’s Kavalan distillery, whose award-winning whiskies have achieved global recognition.
In international markets, the Asian provenance narrative has fuelled Japan’s sake export boom and South Korea’s craft makgeolli revival.
Beyond spirits, the pull of local craft extends to non-alcoholic categories. Producers such as Saicho and Mindful Sparks are elevating tea into a premium, celebratory format, while traditional drinks like Indonesian jamu are being reinterpreted for modern consumers. Cultural identity and the value consumers place on it are increasingly shaping demand for local brands.
The takeaway: For international producers, localisation remains a powerful tool. Successful strategies go beyond distribution; they embed products within local contexts. Examples include serving rituals, such as Chivas Regal’s whisky and green tea combination, and culturally attuned design, such as Absolut Vodka’s Chinese New Year zodiac packaging created in collaboration with local artists.
Trend 4: NOLO motivations are market-specific
Asians consumers are keeping pace with the worldwide moderation movement. About 30% of consumers in the Asia-Pacific region are drinking less alcohol than they were a year ago, according to NielsenIQ 2025 research. The trend is led by Gen Z and driven by health and wellness consciousness as well as economic pressures.
Yet the uptake of low- and no-alcohol (NOLO) products remains slower than in the Western markets. Instead, consumers are turning to Asia’s deep repertoire of freshly made beverages while experimenting with NOLO cocktails and alternatives. Non-alcoholic wines, however, have gained little traction. If consumers were not buying wine to begin with, they are unlikely to adopt it in zero-proof form.
The NOLO trend is structurally established in Japan, South Korea and Singapore, but remains nascent in Vietnam, Thailand and Malaysia. This reflects differences in market maturity, the nature of moderation motivations, and the availability of product alternatives.
Japan is the region’s most developed NOLO market, shaped by both an ageing population – 30% of the population is over 65 years old – and Gen Z moderating their intake. Major brewers, including Asahi, Kirin, Suntory and Sapporo Holdings, have invested heavily in non-alcoholic product lines. South Korea, meanwhile, has emerged as a strong growth market for non-alcoholic beer.
In China, NOLO options offer respite from the pressures of ganbei (“bottoms-up”) dinners, where guests are expected to empty their glasses, giving younger consumers room to redefine drinking culture.
“The younger generation of Chinese consumers is, in my observation, genuinely averse to their parents’ drinking culture, specifically the baijiu ritual of obligatory toasts at 53% alcohol,” says Dan Siebers, an industry figure best known for his work in China’s wine import and distribution sector. “Younger consumers of both genders have consciously walked away from it toward lower alcohol, lighter styles on occasions defined by personal enjoyment rather than social obligation.”
Across the region, bars are responding in kind, offering dedicated NOLO cocktail lists and alcohol-free adaptations of classic serves.
At Vender, ranked No. 20 on the Asia 50 Best Bars 2025, director Summer Chen observes, “Guests expect the same level of craftsmanship, flavour and experience in their non-alcoholic drinks. What we’re seeing is less reliance on bottled zero-proof spirits and more emphasis on in-house creations. Techniques like fermentation, kombucha, vinegar shrubs, teas, hydrosols and fresh juices are being used to build complexity and structure, rather than simply replacing alcohol.”
Beyond cocktails, consumers are also embracing alternative beverages, like sparkling tea and fermented beverages, ranging from the premium end to RTD formats.
The takeaway: A single global NOLO strategy is unlikely to succeed in Asia. Producers who adapt to local drinking cultures, motivations and alternatives will be better placed to capture this evolving segment.
Trend 5: RTD offers potential for growth
The RTD category is growing across much of Asia, with the notable exceptions of Vietnam and Indonesia. Across markets, RTDs are emerging as a bridge between full-strength alcohol and no/low alternatives. They are accessible enough to recruit new drinkers, premium enough to retain and convenient enough for occasions that neither on-trade nor traditional off-trade can reach.
The format, however, varies by market. Japan remains the most developed RTD market, where IWSR finds the category accounted for 21.9% of the total beverage alcohol market in 2024. Its foundation is chu-hai: a canned cocktail typically made with shochu or vodka with fresh fruit flavours, sold everywhere from vending machines to 7-Eleven and FamilyMart convenience stores.
In South Korea, the category arrived later but is now moving quickly. RTD whisky highballs are widely available at convenience stores and particularly popular among young consumers. The underlying logic remains the same: meeting consumers at their occasion rather than requiring them to come to yours.
The takeaway: In markets where off-trade sales dominate volume, RTD is a cheap and effective entry point. Format innovation is most successful when the product is tailored to local tastes and drinking occasions.
Trend 6: The cocktail bar as a category seeder
In emerging Asian markets, growth in premium spirits is closely tied to on-trade education and bartender advocacy. The bar acts as a controller environment for experimentation, where consumers can engage with unfamiliar categories. Bartenders act as gatekeepers and educators, influencing brand perception and driving trial.
Agave spirits, for instance, gained traction in Asia through the advocacy of cocktail bars like Hong Kong’s Coa. According to Euromonitor International, product innovation in alcohol is increasingly influenced by on-trade trends, particularly in urban Asia. Bars are not just places to drink; they are cultural and experimental hubs that shape consumption.
Crucially, bars introduce new spirits in a familiar format: a cocktail serve or a recommended serve that benefits from mixology or the bartender’s endorsement, lowering the barrier to entry and building consumer confidence.
The takeaway: Product or category seeding is an expensive exercise, says Chris Peart, general manager of spirits distributor Perola Asia. “In Singapore, a bar listing can cost from S$500 to S$5000 based on the bar’s standing. Also, it is important to know that Singapore does not generate volumes. It is a lighthouse market that influences satellite Asian markets.” He also emphasises the need to educate bartenders and create appealing merchandise to drive consumer engagement.
Trend 7: The Michelin effect
Food tourism is a powerful force across Asia. Millions travel within the region not for sights but to eat high-end omakase meals in Japan or hawker fare in Penang, Malaysia. For these diners, guides and rankings such as Michelin stars and Asia’s 50 Best Restaurants carry real weight.
The Michelin Guide’s 2018 arrival in Thailand marked a turning point. In just seven years, it has reshaped both the calibre of restaurant opening and the depth of wine programmes. Bangkok counts 32 Michelin-starred restaurants alongside nine spots on Asia’s 50 Best Restaurants 2025 list.
Veteran wine writer Simon Woolf, who was among the first to note the shift, says, “Given this explosion in fancy dining, the wine scene has also blossomed.” Demand has surged accordingly. At restaurants such as Inddee, which has two Michelin stars, the wine list now stretches to as many as 600 wines.
The effect is now spreading well beyond Michelin’s early Asian strongholds, Hong Kong and Singapore. In Vietnam, the country’s first Michelin-awarded sommelier Yu Yamamoto observes, “Since the arrival of the Michelin Guide in 2023, the fine dining scene has been expanding in Vietnam, including new restaurants, such as Upstairs and Little Bear. The number of young Vietnamese sommeliers is also on the rise, leading to an increasing number of exceptional wine lists. This trend will likely continue in the future.”
Further east, Michelin launched its first guide of the Philippines, focusing on Manila and Cebu, and naming one 2-star and eight 1-star restaurants. This and other rankings continue to shape the region’s dining and drinking landscape.
The takeaway: In newer Michelin markets, restaurants are the primary route to market for premium wines and a powerful entry point. With both consumers and sommeliers developing their wine knowledge, producers have a window to engage, educate and build brand advocacy.
About Nimmi Malhotra
Nimmi Malhotra is a Singapore-based writer and editor covering wine and spirits for leading international publications. A regular speaker and moderator on Asian drinks cultures and a wine judge at the Decanter World Wine Awards, she brings two decades of experience across publishing and the alcohol industry. She holds the WSET Diploma and a master’s degree in marketing from Monash University, Australia.
