Two pillars of the Italian economy—wine and the restaurant industry—have always been symbolic of the country’s cultural identity, and are essential components of the "Made in Italy" brand.
Together, they drive not only economic growth but also create spillover effects into sectors like tourism and agriculture, reinforcing Italy's global image of quality and style. However, despite their interconnectedness, 2023 saw these two sectors facing very different trajectories, as highlighted by the fourth edition of Pambianco’s "Wine & Food Summit," organized in partnership with PwC.
The Italian Wine Market: A Challenging Year
For the Italian wine sector, 2023 was a year of slowing market dynamics. The industry struggled with declining production due to adverse climatic conditions, compounded by a general decline in domestic consumption. The consumption drop, amounting to 2.5% less than in 2022, was driven in part by inflationary pressures and the growing popularity of health-conscious choices. Particularly among younger consumers, there has been an increasing demand for lower-alcohol and alcohol-free options, leading to a polarization in the market between high-quality, premium wines and cheaper alternatives.
Despite these challenges, Italian wine exports continued to offer some level of stability. While export volumes dropped by 1%, the sector benefited from an increase in average export prices. The leading international markets for Italian wine in 2023 remained the United States, accounting for 23% of total exports, followed by Germany (15%), and the UK (11%). Notably, while the US market saw a 5.3% decrease, exports to Germany and the UK grew by 2.7% and 4%, respectively. Encouragingly, the first half of 2024 has shown signs of recovery in the US market, with a 4.7% increase in export volumes compared to the same period in 2023.
Italy, which produced 38.3 million hectoliters of wine in 2023, fell to second place in global wine production, contributing 16% of the world’s total, behind France, which accounted for 20%. While domestic consumption stood at 21.8 million hectoliters, Italy remains a key player in the global wine market, with consumption levels putting it in third place globally after the US and France.
Wine Market Leaders: Resilience Amidst Uncertainty
Italy’s top wine companies showed a degree of resilience, with the top 10 commercial wine companies generating a combined turnover of EUR 3.3 billion in 2023, marking a 2% increase from 2022. Leading the charge was Cantine Riunite & Civ, which includes Gruppo Italiano Vini (GIV), posting revenues of EUR 674 million. Other top performers include Argea (EUR 438 million, +3%) and IWB (EUR 429 million).
In the premium segment, top companies performed even more robustly, with six leading Italian wine companies exceeding EUR 1.1 billion in revenues. The premium sector boasted a higher average operating margin (EBITDA index of 31) compared to the commercial wine segment. Leading the premium market was Marchesi Antinori, with EUR 352 million in revenue (+9%), followed by Santa Margherita Gruppo Vinicolo (EUR 255 million) and Terra Moretti (EUR 185 million).
E-commerce: A Normalized Market
The Italian online wine market, which surged during the COVID-19 pandemic, saw a stabilization in 2023. Leading the online segment was Tannico, with EUR 64 million in revenue (-6% compared to 2022), followed by Bernabei, which posted an impressive 24% growth, and Vino.com, which experienced a 22% decline. In total, the top five players in the e-commerce sector generated EUR 143 million, down 7% from the previous year, indicating a post-pandemic normalization of online sales.
The Restaurant Sector: A Different Story
In contrast to the challenges faced by the wine industry, the Italian restaurant sector experienced continued growth in 2023. The so-called "selective" catering market—comprising premium and fine dining establishments—bounced back strongly after the disruptions of COVID-19. The global market for selective catering reached EUR 1.2 billion, with Italy accounting for 3% of the total, making it the fifth-largest market in the world and the leader in Europe.
While the Italian market remains highly fragmented, with chains accounting for just 9% of the sector (compared to 26% in Europe), the concentration of ownership and chain expansion is expected to continue, with capital investments driving development. The opportunities for internationalization remain robust, with Italian fine dining formats seeing increasing success abroad.
Italy's top five selective catering companies reported a combined turnover of EUR 189 million in 2023, up 18% from 2022. Among the leaders was Da Vittorio, owned by the Cerea family, which generated EUR 87 million in revenue (+29%), followed by Langosteria, which grew 32%, and Cannavacciuolo Group, which posted more modest growth of 3%.
Commercial Catering: A Booming Segment
Commercial catering—Italy’s casual and fast-dining restaurant segment—also had a successful year. The top 10 Italian companies in this segment posted EUR 1.7 billion in revenue in 2023, an 18% increase from 2022. Leading the way was Chef Express, with EUR 425 million in sales, followed closely by Cigierre (Old Wild West, Pizzikotto) at EUR 417 million and RoadHouse Spa at EUR 220 million. This growth reflects the rising consumer preference for informal and fast dining formats, in line with modern consumption habits.
Investments and the Future of Food
At the investment level, PwC Italy identifies the food sector as a "defensive" segment, making it attractive to private equity firms. Key niches of interest include frozen food, nutraceuticals, pet food, and foods catering to specific nutritional needs, such as gluten-free options. With significant investment activity in these categories in recent years, private equity firms may now look to either monetize their investments or pursue consolidation opportunities with other players.
The wine sector, too, has been impacted by consolidation trends, with several high-profile aggregation deals occurring between 2020 and 2022. Looking ahead, analysts predict that 2025 could be a favorable year for exits by private equity investors in the wine industry, as they look to capitalize on market trends.
Source: WineNews