Germany, traditionally a powerhouse in the European economy, is facing economic challenges.
However, it remains a vital market for the global wine industry, with Italy leading the way in imports. Despite a slight decline in wine sales, Germany still moves between 16 and 18 million hectoliters of wine annually. According to NielsenIQ data for the German Wine Institute (DWI), 15.9 million hectoliters were sold between August 2023 and July 2024, marking a 4% decrease. Per capita consumption stands at 22.2 liters per year, with over 40% of consumption favoring domestic German wine. The rest comes from imported wines, where Italy plays a dominant role, holding 18% of the market.
Italy’s Stronghold in the German Market
In 2024, German demand for Italian wines generated 1.18 billion euros in revenue for Italian wineries, a 3.7% increase from 2023, making Germany the second most valuable market for Italy after the U.S. (1.9 billion euros). In terms of volume, Germany remains the largest export destination, accounting for 515.8 million liters of Italian wine in 2024, nearly a quarter of Italy’s total wine exports, despite a 2.9% decline from the previous year. By comparison, the U.S. imported 362.3 million liters, and the U.K. 251.1 million liters.
Germany’s Wine Market Structure
The German wine market is valued at approximately 17 billion euros and has a distinct pricing structure. According to Maximilian Scheld, Managing Director at Weinland Ariane Abaya, discount retailers dominate the market, holding a 37% market share, followed by supermarkets at 27%. Notably, 85% of wines sold in Germany cost under 5 euros per bottle, with an average retail price of just 2.6 euros in supermarkets. In contrast, the average price per bottle in restaurants is significantly higher at 26.4 euros.
ProWein 2025: A Strategic Event for Italian Wine
Germany serves as an important gateway for Northern and Eastern European markets, and ProWein 2025 in Düsseldorf (March 16–18) will be a crucial event for Italian wine producers. Over 800 Italian exhibitors will participate, using the platform to strengthen their position in Germany and expand into neighboring markets such as:
- Netherlands – 257.1 million euros (+10.1%)
- Russia – 230.6 million euros (+45.6%)
- Belgium – 227.5 million euros (-1.6%)
- Sweden – 189.6 million euros (+3%)
- Austria – 163.5 million euros (+14.3%)
- Denmark – 150.8 million euros (+4.94%)
- Norway – 92.2 million euros
Impact of U.S.–EU Trade Tensions
The German market plays a central role in Italy’s wine exports within the European Union, which accounted for 3.2 billion euros in 2024. When adding Russia and the U.K., this figure rises to 4.3 billion euros—more than half of Italy’s total 8.1 billion euros in global wine exports. However, geopolitical tensions could impact trade.
Recent remarks by former U.S. President Donald Trump, threatening 200% tariffs on European wines, Champagne, and spirits, have raised concerns. While no official measures have been enacted, such tariffs could disrupt transatlantic trade. The European wine industry is valued at 130 billion euros in GDP, according to the Comité Européen des Entreprises Vins (CEEV), making stability in trade policies crucial for producers.
Conclusion
Germany remains a critical market for Italian wine, offering both volume and value opportunities. Despite economic difficulties and shifts in purchasing trends, it remains a strategic hub, not only for Italy but for the broader European wine sector. With challenges such as U.S.–EU trade tensions and shifting market dynamics, Italian wineries must navigate uncertainties while leveraging key industry events like ProWein 2025 to maintain their strong foothold.
Source: WineNews