A recent report prepared for the Deutsches Weininstitut (DWI) by Geisenheim University, under the leadership of Prof. Dr. Simone Loose, provides a comprehensive analysis of the German wine market in 2024.
The findings highlight significant challenges, with an overall 6.6% drop in wine sales and a 3.6% decline in revenue. While domestic sales channels suffered setbacks, exports remained the only stable segment, cushioning the blow for some producers.
Direct Marketing Holds Steady Amid Market Challenges
Despite the overall downturn, direct marketing proved to be the most resilient sales channel, maintaining its position as the primary revenue stream for German wineries. With a 46% share of total sales, it recorded only a 4% drop in volume, and a 3.4% increase in revenue helped limit the overall decline to just 0.7%. This highlights the importance of direct-to-consumer strategies for wineries, as personal engagement and brand loyalty continue to play a crucial role in sustaining business.
Specialist Retailers and Catering Sector Under Pressure
Specialist wine retailers, which account for 21% of total sales, also saw a decline, with a 5% drop in sales volume. However, a slight 1.6% increase in revenue kept losses manageable, limiting the overall sales decrease to 3.5%. This suggests that while fewer bottles were sold, consumers were still willing to pay slightly higher prices.
The most dramatic losses occurred in the hospitality sector, which remains the third most important sales channel. Sales in the catering industry dropped by 9%, accompanied by a 7.7% revenue decline. The report attributes this slump to several factors: the increase in VAT, structural difficulties within the sector, and a reduction in disposable income among consumers. These challenges have created a difficult environment for wineries relying on restaurant and bar sales.
Rising Prices, Lower Volumes
Despite lower overall sales, the average revenue per liter increased to €7.20, or €5.40 per 0.75-liter bottle, reflecting price adjustments and a shift toward premium offerings. However, this price increase was insufficient to offset the decline in volume, bringing the total sales level down to that of 2021. Wineries managed to sell only 88% of the volume they recorded in 2021, signaling an ongoing struggle to regain pre-pandemic stability.
Outlook: Adaptation Required for Long-Term Growth
The 2024 report underscores the shifting dynamics within the German wine industry. While direct marketing and exports provided some stability, reliance on traditional sales channels—such as hospitality and retail—poses significant risks. Wineries may need to further adapt by enhancing their direct-to-consumer strategies, leveraging digital sales, and focusing on export growth to navigate the current economic landscape successfully.
Source: DWI