Inflation may be squeezing household budgets across the Philippines, but the country's wine glasses are far from empty. A detailed 2025 study of the local market shows an industry that continues to evolve in striking ways: everyday drinkers are trading down to cheaper bottles, while affluent consumers remain loyal to prestige labels. The duality reveals not only how Filipinos are coping with economic pressure, but also how the country's wine culture itself is maturing.

Imported Wines Dominate

Imported wines account for more than 80% of total wine consumption in the Philippines, underscoring a strong preference for international brands. The United States leads all source countries with close to 600,000 nine-liter cases — the industry-standard measure equal to a dozen 750-milliliter bottles — well ahead of second-place Australia at just over 200,000 cases. Local wines, most notably Novellino, slipped slightly.

Long-time market leader Carlo Rossi, produced by California's E&J Gallo, held on to the No. 1 position in 2025 with a 26% market share — more than one of every four bottles consumed in the country. Novellino remained a strong No. 2, while other imported brands such as Hardys, Santa Carolina and Yellow Tail also held significant positions in a crowded field. Unsurprisingly, all of these leading brands sit in the accessible price range; none is priced at P600 (less than $10) or more per bottle.

Price and Promo-Driven

For the past couple of years — despite the depreciation of the Philippine peso — wine has been among the most promotion-driven products in retail and online stores, with nearly every deal centered on price and value for money. Multi-buy offers such as 1+2, 1+1, 3+2, 2+1 and 3+1 are commonly seen at S&R, Landers, SM and across online platforms, all designed to encourage multiple purchases at steep discounts. In effect, a 1+2 deal amounts to a 67% discount, 1+1 equals 50%, and so on.

With roughly 80% of locally available wines imported, it is difficult to see how importers can sustain margins squeezed not only by foreign-exchange movements but also by these promotions. Such deals may therefore not be viable in the long term and likely function more as a short-term inventory disposal strategy. The clearest winners, for now, are consumers, who get "more bang for their buck" when they take advantage of the offers.

Prestige Wines: Untouched by Inflation

The study also reveals deep polarization at the top of the market. Prestige wines — defined in the study as iconic brands from Grand Cru Bordeaux and Burgundy, a top-tier designation for vineyards in those French regions, selling for hundreds or even thousands of US dollars, through to the likes of Opus One and Masseto — remain resilient. Wealthy and powerful individuals continue to purchase expensive bottles, unaffected by rising costs.

This very small prestige segment posted negligible growth in 2025, while the tiers beneath it — Ultra-Premium, Premium and Mid-Priced — all declined. Only the highest and lowest ends of the price spectrum registered growth. The persistence of luxury consumption highlights the market's dual-track nature: on one track, wine is becoming more inclusive, with affordable brands gaining ground; on the other, it remains a symbol of exclusivity, with Bordeaux, Burgundy, Champagne and prominent cult wines still gracing the tables the affluent.

Red Rules, Rosé Rises

Red wine remains the heart of Filipino wine consumption, accounting for 77% of wine sales and growing 1.3% year on year. White wine declined by 2.3%. Rosé, though still a small share of the market, grew 3.2% — the fastest of all categories — a rise credited largely to the emergence of sweet Pink Moscato wines. Rosé's lighter alcohol, refreshing, sweet and fruity style, combined with its appeal on social media, has made it popular among younger drinkers. This could mark the beginning of a generational shift in wine preferences — one driven by aesthetics and lifestyle as much as taste.

New World Wines More Dominant Than Ever

The Philippines is firmly a New World wine market — industry shorthand for producers outside Europe's historic winemaking countries. Wines from the US, Australia, Chile and Argentina command more than 80% of total wine sales and grew 1.3% in 2025, while Old World wines led by Spain and France declined by 3%. The preference reflects Filipino consumers' taste for approachable, fruit-forward styles over the structured, earthy profiles typical of Old World producers. It also mirrors a global pattern in which emerging markets favor wines that are easy to understand and pair with diverse cuisines. The shift suggests Filipino drinkers are becoming more adventurous yet pragmatic, choosing wines that fit both their palates and, more importantly, their budgets.

Organic and Sustainable Wines

Organic wine remains a niche and is insignificant in the industry. The reason may be less a lack of awareness of eco-friendly production than a function of price: most organic wines available locally sit in the Mid-Priced to Premium segments — precisely the tiers in decline. Once the economy and consumers' purchasing power improve, sustainability may become a real consideration for local wine drinkers, but not at this juncture.

Philippine Wine Market Outlook

The Philippine wine market is uniquely dynamic. It is neither simply shrinking nor growing; it is reshaping itself along cultural and economic lines. The study's statistics indicate that wine is becoming both a comfort and a luxury — a drink for everyday occasions and elite celebrations alike.

For importers, distributors and marketers, the message is clear: flexibility is key. Affordable brands should be positioned as everyday companions, while prestige labels should continue to emphasize exclusivity and heritage.

For consumers, wine is no longer a distant luxury. It is becoming part of Filipino identity, reflecting both resilience in tough times and aspiration in moments of indulgence. One caution applies: the current wave of promotions is not going to last forever.

The next chapter of Philippine wine will be written not just in discounts, but in how consumers embrace wine as part of their identity.

---

About the author: Sherwin A. Lao is the first Filipino wine writer member of both the Bordeaux-based Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux (FIJEV) and the UK-based Circle of Wine Writers (CWW). He can be reached at wineprotege@gmail.com; his wine training website is and his YouTube channel is www.youtube.com/@winecrazy.

This article was first published by BusinessWorld.