World wine market in the IWSR report

Apertura_portaleThis year, too, the cyclical IWSR report, which by now has been realized for 13 years by Vinexpo with its British partner The International Wine and Spirit Research, outlined the most important trends of the world market for wines and spirits. This study is based on real data (IWSR database is the more extensive, precise and detailed in the world market for alcoholic beverages) concerning global consumption, production, and international trade in the last five years, with forecasts up to 2018. This analysis was carried out for about 28 producing Countries and 114 consumer markets.
The results concerning Italy are overall good. As a matter of fact, for the year 2013 Italy was the first exporter Country (by volume) in the world scene of wine, ahead of France and Spain; the first consumer Country of white wine (by volume); the second wine producer, after France; the third wine-consuming Country, after the USA and France (by volume); the sixth consumer of sparkling wines (by volume) and the fourth world market for proceeds of sales realized thanks to the sale of wine (by retail).

Italian consumers drink less, but better

Guillaume Deglise, CEO of Vinexpo, during the presentation of the IWSR study (Milan, March 2015) underlined that the data concerning the consumption of wine in Italy cannot disregard the fact that in our Country the economic situation is still difficult, the consumers are affected by the effects of the present austerity policy, and families’ confidence is at its lowest. Horeca sector has much suffered in recent years because of the economic crisis and this has brought about an important impact on the consumption of wines and spirits. As a matter of fact, if we consider wine consumption by volume, we immediately see the negative trend of the market over the past five years: -5% for still wines, -15.2% for sparkling wines. However, it should be emphasized that 70% of wines consumed in Italy are in 75 cL bottles. This means an important change, namely that Italians consume wines characterized by better quality. This is a general trend in the big producing Countries.
The consumption of sparkling wines, too, recorded -2.1% in 2013. For these wines, the market is ambivalent: on the one hand the market of sparkling wines proposed in promotional sales in large retail chains, especially at Christmas and New Year, is estimated at 5%; on the other hand, good results are recorded for quality sparkling wines, especially wines from Franciacorta, which are increasingly popular outside their area of ​​production. The success of sparkling wines for preparing such aperitifs as Aperol Spritz is noteworthy.
Finally, as for still wines by colour, Italy is in the first place in the world for the consumption of white wines. The market share for white and red wines is equivalent, with 49.3% for each one, while the one concerning rosé wines is more limited in comparison with such other Countries as France (where the consumption of rosé wines is more important than the one of white wines) or the Anglo-Saxon Countries.

Import and export of Italian wine

We know that Germany is by far the most important importer market of Italian wines, but if we look at the data concerning the top five Countries for Italian exports by volume, we see that it recorded a decrease by 8.8% between 2009 and 2013. On the other hand, the Anglo-Saxon Countries continue their growth: + 24.5% for the USA, which is the second largest importer, + 9.4% for the United Kingdom, the third one, and 13.8% for Canada, the fifth one. The total exports over the five years which were analyzed recorded an increase by 3.5% in volume. We must also remember that Italy is the leading exporter of still wines in the world by volume, ahead of France and Spain.
The data concerning the first nine Countries from which Italy imports still wines show that imports represent a very small share of the consumption of wine in Italy, that is to say 0.3% of the consumption concerning still wines and 7.1% of the consumption concerning sparkling wines, mainly thanks to Champagne. France is by far the leading exporter of wine towards Italy, followed by Portugal, Spain and Chile: as for these three countries, mainly the areas of lowest prices and own brands are concerned. Australia records -66.7% as for exports to Italy.

A look at the world. Consumptions

Which is the situation of wine market in the world? From the analyzed data, it can be noted as global consumption continues to grow, with an increase by 2.7% between 2009 and 2013.
If we consider the consumption of still wines and sparkling wines by volume for the different Countries, we see a positive trend for the USA, with 11% in the last five years and 11% for the next five years. Even China alongside with Hong Kong records a significant growth, which is however more reasonable than the one concerning recent years. After several years of decrease, a growth concerning the United Kingdom is recorded, with a forecast by 5.5% for the next 5 years. The ranking is different for sparkling wines only: Germany remains in the first place, with a strong tradition in the consumption of sparkling wines, even though they are entry level products. The same thing happens for Russia, in the third place. A general increase in the consumption of sparkling wine is recorded in the Anglo-Saxon Countries, with the USA in the fourth place and the United Kingdom in the fifth place.
As for the market share concerning the consumption of still wines by continent, a decrease in the share of the European continent is recorded, with advantage for America and the Asia Pacific region. However, Europe remains by far the most important consumer, with 63% today and 61% forecast for 2018. In Western Europe, still now the market share is twice the one concerning USA and three times as much the Asia Pacific region. Therefore, the distant markets are important in the medium and long term, but consumptions remain above all European, with some markets which continue to grow (Northern Europe) and some leader markets whose increase resumes, such as United Kingdom or Germany. This is even truer for sparkling wines: Europe records a large majority in consumption, although the market in the USA is definitely increasing. The shares concerning Europe were 78% in 2013 and will be 76% in 2018. Therefore, the increase concerning sparkling wines is more important than the one for still wines (+ 7.7% between 2009 and 2013) and this increase mainly concerns Prosecco, very fashionable in Europe and the USA, and also the Spanish Cava.
The data concerning per capita consumption, which is declining in mature Countries, are interesting. Deglise explains: ‘The reasons are related to our time, but we finally see a generational change: in these Countries wine is no longer considered as a food, but a way of life; a more selective, but less systematic consumption follows. In other markets, the consumption is increasing, because it is new consumption, in such Countries with not so long tradition as Sweden or Slovakia”. As for the consumption of still wines by colour, red wines dominate with 54%, largely thanks to China, but also France and the USA; white wines are second with 37%, but rosé wines records the highest growth and represent a real trend in the world, especially in some European Countries and in the USA. In 2014 the share of rosé was 9%, but the trend is still positive as for the next five years, and the most important increase will just concern this category of wines.

International exchanges

Among the top 10 exporting Countries of still wine and sparkling wine by volume, in 2013 Italy consolidated its position as first Country worldwide. France, too, is noteworthy. This Country is the most affected by the slowdown in growth concerning China; Australia records a strong decrease, with a loss of positions on its main markets, that is to say the USA and England; Chile recorded a growth by 15% over the last five years; finally, the USA, too, become an important Country for export.
The top 10 of importing Countries of still wines by volume, too, is very important for such Countries that produce wines as Italy and France, which do not appear in the top 10. Germany goes ahead of the United Kingdom. The target markets for the coming years are the USA, now the third one, China (+ Hong Kong) in fourth place, and Japan, 8th Country with a growth by 45.5% over the last five years and 8.6 % for the next five years.

(in box)

48 litres per capita

Italy remains the Country with the highest per capita consumption in the world, 48 litres per year (in the Seventies, the consumption was 130 litres per capita). The study which was carried out forecasts that in the coming years a further decrease concerning per capita consumption will be recorded, by 6.8% between still wines and sparkling wines.

(in box)

Focus on Italy

Interview with Guillaume Deglise, CEO of Vinexpo.

VWQ: Italy was the first market for white wines in 2013. This situation is curious and, above all, it goes against the global trend. Which are the reasons for this market trend?
“Italy has a very important market concerning wines and drinks. The share is about the same as for red and white wines. Other important markets, such as France and China, consume more red wine. The consumptions in Italy record a trend towards white wine, and, in general, lighter drinks, in terms of many categories of wines and spirits. On the other hand, in other Countries the global trend records a preference for red wines. This happens in China, where red wines are by far more consumed than white ones. We should add that the share between white and red wines in Italy (as well as in other markets) is not an exact science, but an estimate based on conversations with leading producers and distributors”.
VWQ: Which is the weight of sparkling wines in the preference Italians show for white wines?
“We do not divide sparkling wines by colour. In Italy there are many sparkling red wines, including Brachetto, which are quite well sold in their local regions. Lambrusco may be the first sparkling red wine that comes to mind, but in fact it is generally classified (by IWSR, too) as still wine rather than sparkling wine. Therefore, sparkling wines in Italy are basically white, and within this production there is a very wide range of locally produced sparkling wines, from Prosecco to Trento DOC, Franciacorta, Asti, and many other ones”.
VWQ: IWSR Report says that Italian wine export has increased thanks to interesting brands. In what sense are these brands interesting?
“Basically, export has become increasingly important for Italian wine producers in recent years, and the awareness concerning Italian wines – beyond such well-known classic products as Chianti, Soave, Pinot Grigio from Veneto, etc. – is also increasing. In addition, the consumers around the world are now more aware of the extremely wide variety of made in Italy wines than it happened 20 or even 10 years ago”.
VWQ: The consumption of rosé wines is stable and is mainly located in three markets: France, United Kingdom, and USA. How important are Italian rosé wines on these markets, by quantities and value?
“We do not divide wines by colour according to their Country of origin, but in France Italian wine is the top imported wine, followed at a short distance by Spanish wines. However, imported wines just concern about 2% of this market. In the United Kingdom, Italian wines concern 14% of still light wine market. In the USA, Italian wines account for 8.6% of still light wine market”.

Consumer countries

Pos. Country 2014 2018 Evol 09/13 Evol 14/18
1 USA 339,6 377,9 + 11,6 % + 11,3 %
2 France 296,4 288,2 – 4,0 % – 2,8 %
3 Italy 288,4 273,6 – 5,4 % – 5,1 %
4 Germany 274,8 277,9 – 2,8 % + 1,1 %
5 China (+Hong Kong) 144,8 180,7 + 69,3 % + 24,8 %
6 UK 133,8 141,2 – 7,9 % + 5,5 %
7 Argentina 112,8 110,5 – 2,5 % + 2,0 %
8 Russia 90,7 93,5 + 9,2 % + 3,0 %
9 Spain 82,0 78,6 – 12,3 % – 4,2 %
10 Australia 57,4 58,2 + 5,3 % + 1,5 %
Top 10 1820,7 1880,2 + 2,7% + 3,3%
Tot 2635,0 2732,8 + 2,7% + 3,7%

By quantities. Millions of 9 liters cases of wine (still and sparkling wines).

Consumption per capita

 Pos. Country 2014 2018 Evol 09/13 Evol 14/18
1 Italy 48,1 45,0 – 6,8 % – 6,3 %
2 France 47,4 45,1 – 5,6 % – 4,8 %
3 Switzerland 44,7 42,8 – 4,1 % – 4,3 %
4 Portugal 42,6 41,3 – 2,4 % – 3,0 %
5 Austria 41,1 41,2 – 0,2 % + 0,2 %
6 Greece 38,1 39,7 + 1,8 % + 4,3 %
7 Denmark 35,9 34,3 – 5,2 % – 4,5 %
8 Germany 36,2 36,5 – 4,8 % + 0,9 %
9 Argentina 33,6 31,3 – 7,4 % – 6,7 %
10 Hungary 30,9 31,0 – 0,6 % + 0,3 %

Liters per capita (still and sparkling wines).

(article by Paola Tisi)

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