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Ciatti - Global Market Report (February 2024)

The global bulk wine market has kicked off 2024 with varying dynamics across key producing regions, reflecting both challenges and opportunities in the wine trade.

After a relatively sluggish second half of 2023, the market has shown signs of activity, driven by evolving harvest conditions, pricing adjustments, and geopolitical factors influencing demand.

South Africa: Anticipating the 2024 Harvest

South Africa’s wine industry is gearing up for the 2024 harvest amid expectations of average to below-average yields. With minimal inventory remaining from the 2023 stock, prospective buyers are urged to act swiftly, especially for varietal rosé wines. The 2024 varietal whites are anticipated to draw early demand due to limited availability, emphasizing the need for timely procurement decisions. While overall pricing for the 2024 vintage is expected to increase marginally to cover rising costs, the weakening Rand could moderate this impact for international buyers.

Italy: Pinot Grigio and Prosecco in Demand

Italy has seen steady demand for its bulk wines, particularly Pinot Grigio and Prosecco, which continue to attract interest from global markets. However, prices have risen and supplies are constrained following a significantly shorter 2023 crop, reducing stock levels by 10 million hectoliters compared to 2022. The unseasonably warm and dry conditions in central and southern Italy pose challenges for the upcoming 2024 harvest, potentially impacting production volumes further.

Spain: Balancing Demand for Whites and Reds

Spain’s wine market reflects an uptick in white wine pricing due to strong initial demand from European markets, especially for generic whites and sparkling bases. Despite this, red wine prices have started to soften after an initial increase, offering negotiation opportunities for buyers looking to diversify their portfolios. With an estimated 2023 crop of 35.29 million hectoliters, Spain maintains competitive pricing globally, encouraging international trade amid stable availability levels across all wine categories.

France: Opportunities in Southern Regions

France presents compelling opportunities in its southern regions, offering a range of wines at attractive prices amidst a softening market trend. Regions like Provence and Languedoc-Roussillon offer high-quality IGP varietal whites and non-vintage VDF reds and rosés, appealing to international buyers seeking value. The unseasonably warm start to the year has influenced production conditions favorably, supporting diverse offerings across the French wine landscape.

Chile: Market Stability and Demand

Chile’s bulk wine market has maintained stability in early 2024, buoyed by steady demand and expectations of a shorter crop. Prices have leveled off and even ticked up in some instances, influenced by mildew pressures and currency fluctuations. The weakening peso has further incentivized buyers with bulk needs to engage in the market promptly, ensuring favorable pricing opportunities before potential price adjustments.

Australia & New Zealand: Harvest Challenges and Market Responses

Australia and New Zealand face varied challenges with their 2024 harvests. Inland Australia reports below-average yields for warm-climate Chardonnay and red grapes due to imposed yield caps and climatic conditions. Conversely, New Zealand anticipates reduced outputs compared to previous bumper crops, maintaining competitive pricing for Marlborough Sauvignon Blanc. Both countries navigate fluctuating export volumes amidst geopolitical uncertainties, particularly in relation to trade relations with China.

Global Market Insights and Future Outlook

Across these regions, the global bulk wine market in early 2024 reflects a nuanced interplay of supply constraints, pricing dynamics, and geopolitical influences. Suppliers are increasingly price-sensitive, balancing the need to cover production costs with competitive pricing strategies to attract international buyers. As the year progresses, the industry will continue to adapt to evolving consumer preferences and market conditions, navigating challenges while seizing opportunities for growth and stability.

In conclusion, the outlook for the global bulk wine market underscores the resilience of producers and the adaptability required to thrive in a competitive landscape. With strategic procurement and responsive market engagement, stakeholders can navigate uncertainties and capitalize on emerging trends to sustain growth in the dynamic wine trade environment.

Source: Ciatti

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