EU Wine Trade in July-2024: Marginal Export Decline and Significant Import Growth

The European Union (EU) is both a significant producer and consumer of wine, making it a central player in global wine trade.

In July, EU wine exports showed a minor decline, but certain key players, such as France, Italy, and Portugal, performed well. On the import side, the EU saw robust growth, driven largely by increased demand in countries like the Netherlands, Belgium, and Italy.

This article aims to analyze the trends in EU wine exports and imports in July, highlighting the factors influencing these changes and their potential implications for the wine trade.

Export Performance

In July, the EU's total wine exports reached 6.2 mn HL, a slight YoY decline of 0.7%. This minor reduction reflects mixed performances among the EU's major wine-exporting countries.

1. France (FR):
   France exported 1.24 mn HL of wine in July, marking a YoY increase of 6.2%. This growth contrasts with the declines seen in earlier months, indicating a recovery in French wine exports. France's export performance can be attributed to increased demand for premium wines, particularly from non-EU markets like the United States and China.

2. Spain (ES):
   Spain, the EU’s largest exporter by volume, saw its wine exports decline by 5.9% YoY, to 1.68 mn HL. Spain's reliance on bulk wine exports, which are more price-sensitive, has left it vulnerable to global competition. Additionally, economic challenges in key markets and increasing competition from non-EU wine-producing countries have contributed to this decline. 

3. Italy (IT):
   Italy exported 2.02 mn HL in July, an increase of 3.6% YoY. This growth reinforces Italy’s position as one of the leading wine exporters in the EU. Italian wines, particularly Prosecco and Chianti, continue to enjoy global popularity, with demand rising in both traditional markets such as the UK and emerging markets. 

4. Germany (DE):
   Germany’s wine exports experienced a slight YoY decline of 0.6%, totaling 0.26 mn HL. As a smaller exporter compared to France, Italy, and Spain, Germany has faced challenges in increasing its export volumes, especially for its white wines like Riesling.

5. Portugal (PT):
   Portugal’s wine exports rose by 16.1% YoY to 0.34 mn HL. This strong growth highlights the increasing demand for Portuguese wines, especially premium products such as Port and Vinho Verde. Portugal’s focus on premiumization and the promotion of its unique wine varieties have contributed to this export growth. 

6. Other EU Countries:
   Smaller EU wine-exporting countries, including Austria, Greece, and Hungary, saw a significant decline of 16.5% YoY, with exports totaling 0.64 mn HL. These countries, which produce lower volumes compared to the major exporters, have struggled to maintain their market presence in an increasingly competitive global wine market. 

Import Performance

In contrast to the slight decline in exports, the EU’s wine imports surged in July, with 7.9 mn HL exchanged, representing a 17.3% YoY increase. This marks the highest import volume in the last two years, signaling strong domestic demand for both EU and non-EU wines.

1. Netherlands (NL):
   The Netherlands continued its role as the EU's largest wine importer, with 4.24 mn HL of wine imported in July, a YoY increase of 43.5%. As a major distribution hub, the Netherlands imports significant volumes of wine for both domestic consumption and re-export to other EU countries. The strong increase in imports reflects growing demand for a diverse range of wines, as well as the Netherlands' strategic position in the EU wine market.

2. Germany (DE):
   Germany imported 1.21 mn HL in July, a YoY decline of 1.4%. This slight decrease mirrors the country’s reduced export performance and may indicate a saturation in domestic wine consumption. Germany’s wine imports primarily consist of wines from neighboring EU countries, but shifting consumer preferences toward local and sustainable products may be affecting import volumes.

3. Belgium (BE):
   Belgium’s wine imports surged by 45.4% YoY, reaching 0.36 mn HL. This sharp increase highlights the growing demand for a wider variety of wines in Belgium, which, like the Netherlands, acts as both a consumer and a re-exporter of wines. 

4. France (FR):
   France imported 0.46 mn HL of wine in July, representing a YoY decline of 22.7%. As one of the world’s largest wine producers, France imports relatively small quantities of wine. The decline in imports reflects France's strong domestic production, which continues to meet the bulk of domestic demand.

5. Sweden (SE):
   Sweden imported 0.19 mn HL in July, a decline of 8% YoY. Sweden is a relatively small wine market in the EU, and the decrease in imports may be linked to changing consumption habits and growing interest in alternative beverages such as craft beers and spirits.

6. Italy (IT):
   Italy imported 0.18 mn HL, marking a significant YoY increase of 69.3%. This sharp rise suggests growing domestic demand for imported wines, which may be driven by consumer interest in wines from non-EU regions. 

7. Portugal (PT):
   Portugal’s wine imports fell sharply by 46.7% YoY to 0.16 mn HL. As a major wine-producing country, Portugal imports relatively small volumes of wine, and the decline in imports may reflect the strength of domestic production in meeting consumer demand. Additionally, Portuguese consumers have a strong preference for local wines, which limits the need for imports.

8. Denmark (DK):
   Denmark imported 0.17 mn HL in July, a YoY increase of 9.4%. Denmark’s growing interest in wine, particularly from non-EU producers, has driven the increase in imports. The country’s wine market is characterized by a demand for a wide variety of wines, making it a key importer within the EU.

9. Other EU Countries:
   Other EU countries collectively imported 0.85 mn HL, representing a 4.8% YoY decline. This group includes smaller wine markets such as Austria, Hungary, and Greece, where local production often satisfies domestic demand. 

Discussion

The mixed performance of EU wine exports and imports in July reflects the complex dynamics of the global wine market. On the export side, France, Italy, and Portugal performed well, benefiting from strong demand for premium wines in key markets. However, Spain and Germany faced challenges, particularly in the bulk wine sector, where increased competition and price sensitivity have made it difficult to maintain growth.

On the import side, the surge in demand across several key EU countries, particularly the Netherlands and Belgium, highlights the growing interest in a diverse range of wines. The rise in imports also reflects the increasing globalization of the wine market, with EU consumers seeking wines from both within and outside the bloc. However, the decline in imports in countries like France and Portugal suggests a growing preference for local wines, which could have long-term implications for intra-EU trade.

Source: Eurostat