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Spain's Wine Exports: Resilience and Adaptation in a Shifting Global Market

In 2023, a total of 3,995 Spanish wine companies engaged in the global market, underscoring Spain's position as a key player in the global wine trade.

As per the analysis conducted by the Spanish Wine Market Observatory (OeMv) on the report furnished by ICEX Spain Exportation and Investment, it was revealed that in the previous year, 3,995 companies were involved in wine exports, yielding a revenue of EUR 2,986.6 million. These statistics indicate a marginal decline compared to the preceding year, with a slight reduction in both the number of active companies in the sector (down by 0.6%, equivalent to 25 fewer companies) and the overall turnover volume (a decrease of 3.4%, amounting to EUR 103.9 million less).

The decline in both turnover and the count of exporting companies is particularly notable, especially considering that the sector, having surpassed 4,000 companies in 2022, not only failed to sustain that level but also experienced a slight downturn. Moreover, the more significant decrease in turnover compared to the decline in the number of companies suggests a reduction in the average turnover per company, which declined from EUR 768,792 in 2022 to EUR 747,585 in 2023.

Out of the nearly 4,000 companies cited, 2,229 (approximately 55.8% of the total) have consistently sustained their export operations over the past four years. Remarkably, these companies account for 96.3% of the total revenue generated, highlighting the significant concentration of billing within a relatively small subset of enterprises.

The export market is characterized by segmentation. On one end of the spectrum, 51.7% of export companies generate annual invoices of less than EUR 25,000, contributing merely 0.5% to the overall turnover. Conversely, at the opposite extreme, a mere 2.9% of companies, exceeding EUR 5 million in sales per company, account for a substantial 71.6% of total export value. This underscores a significant concentration of sales within a select few companies, with the top 50 entities representing 54% of the total, and the top 1,000 commanding a staggering 97.7%.

These figures illustrate an imbalance within the Spanish wine sector. While they underscore the stability and dominance of a select group of companies with significant export prowess, they also highlight the vulnerability and potential for expansion that many small and medium-sized enterprises still possess in the industry.

Tripling of Exporting Wineries Since the Turn of the Century

Since the turn of the century, the landscape of wine exports in Spain has undergone significant transformation, reflecting both growth and adaptation amidst global market shifts. The number of companies dedicated to exporting Spanish wines has surged, nearly tripling since the early 2000s, despite occasional setbacks such as those observed in 2018 and 2020.

This journey of expansion began with a notable leap from 1,305 to 2,099 exporting wineries between 2001 and 2002, signaling the onset of a positive trajectory. Substantial growth was especially evident between 2009 and 2011, witnessing a rise from 3,013 to 3,602 exporting companies, representing a remarkable 19.5% increase. Concurrently, this period witnessed a surge in export values, underscoring a time of prosperity and advancement.

However, the path has not been devoid of challenges. In 2012, the sector experienced its first decline in the number of exporting companies in the century, followed by a similar trend in 2014. Despite subsequent recoveries, 2018 posed a significant hurdle due to a poor harvest, resulting in the largest reduction in exporting companies on record, with a 10% decline. While there were signs of recovery in 2019, numbers did not fully rebound and experienced a dip again in 2020.

Yet, amidst these fluctuations, resilience prevailed, evidenced by a resurgence in 2021 and a slight uptick in 2022 before facing a modest contraction in 2023. Throughout these two decades, the number of exporting wineries nearly tripled, outpacing the rate of wine exports themselves. Despite this growth, the average export per winery has decreased, reflecting the influx of new exporters. While sales per company exceeded one million euros at the dawn of the century, this average has since declined to just over half a million euros in 2010, with a subsequent increase to EUR 747,585 on average in 2023.

Germany - The Biggest Importer of Spanish Wine

When examining Spanish wine exports across continents and countries, we encounter a diverse and ever-evolving landscape. Europe retains its status as the primary destination for Spanish wine, commanding 65.5% of total turnover, equivalent to EUR 1,954.3 million, with 2,645 companies directing their exports to this continent in 2023.

Within Europe, the Eurozone claims the largest share of sales at 39%, followed by the rest of Europe (including the United Kingdom) at 11.3%, and the remaining European Union countries at 7%. Notable among European buyers, Germany emerges as the leading purchaser of Spanish wine, closely followed by the United States, the United Kingdom, and France.

Beyond European borders, America emerges as the second most significant destination, generating EUR 643.5 million in sales for 2,245 Spanish companies. Following closely, Asia contributes EUR 247.9 million in turnover, with 1,542 companies involved, with Japan and China emerging as primary markets on the continent. Notably, Japan not only leads in terms of turnover but also serves as the top Asian destination for Spanish export companies.

While Africa and Oceania represent smaller sales volumes compared to Europe, America, and Asia, they play integral roles within this diversified export network, contributing EUR 107 million and EUR 12.3 million in turnover, respectively. These figures underscore the global expansion of Spanish wine, which extends beyond traditional markets as it continually seeks out new horizons.

Driving Forces Behind Spanish Wine Exports

Catalonia and Castilla-La Mancha emerge as prominent figures in both the number of exporting wineries and the volume of turnover, with Barcelona leading as the province with the highest export activity. However, upon scrutinizing the relationship between the number of exporting companies and sales across autonomous communities, only Castilla-La Mancha and Extremadura surpass the Spanish average in terms of average export per winery in 2023.

This regional examination provides insight into the scale and export capabilities of wineries across different regions of Spain, showcasing a diversity that reflects the country's rich wine heritage and the varied internationalization strategies adopted by autonomous communities.

This portrayal of Spanish wine exports illustrates a sector in perpetual motion, adept at adapting to shifts in the global market and seeking out new opportunities beyond traditional borders. The geographic spread of exports not only reinforces Spain's position as a pivotal player in the wine industry but also underscores the importance of ongoing innovation and adaptation to meet the preferences of an increasingly discerning and competitive global market.

Source: Vinetur

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