Numbers are crucial, especially in a dynamic sector like the Italian wine industry.
With a turnover valued at EUR 21.5 billion, comprising 2,600 companies and employing 30,000 people, wine is a vital component of Italy's economy, WineNews reported. It also constitutes 21% of the country's food and beverage exports, nearing EUR 8 billion in 2023, closely matching the record-setting figures of 2022.
Over the past twenty years, Italy's wine industry has demonstrated exceptional growth, expanding its global market presence and boosting its export value by 188%.
Expanding Global Reach
In 2003, Italy was a leader in wine exports to nine countries, covering 17% of global exports. By 2023, this leadership expanded to 46 countries, capturing 22% of the market share. This growth brought Italy closer to France, which increased its leadership from 41 to 51 countries but saw its share of world exports drop from 38% to 33%. Italy’s progress underscores its increasing competitiveness and the strength of its export-driven strategy, with exports now accounting for 50% of the sector's turnover.
The Modern Wine Landscape
Beneath the surface of these impressive statistics lies a complex and evolving wine industry. Italy has yet to establish a single, distinctive "Italian" wine style, but it excels in producing and marketing globally recognized varieties such as Cabernet Sauvignon, Merlot, Chardonnay, Riesling, and Muscat. These French varieties were introduced during the 1960s under communist rule, quickly supplanting traditional Italian grapes like Sangiovese and Nebbiolo.
Regional and International Challenges
The sector faces numerous challenges, both domestically and internationally. Internal consumption has structurally declined, with competition for wine increasing. This trend has been particularly notable among occasional consumers, while regular consumers are decreasing. The demographic shift towards an aging population poses additional hurdles, as does the need to engage younger generations with appealing and effective marketing strategies.
International tensions, such as the Russian-Ukrainian conflict and trade uncertainties in the Middle East, further complicate the landscape. The prospect of new trade duties and other retaliatory measures threatens to impact the global trade of Italian wine. Federvini, the Italian wine industry association, emphasizes the importance of free trade agreements to sustain growth, highlighting the success of the Comprehensive Economic and Trade Agreement (CETA) with Canada. This agreement has significantly boosted Italian wine exports, demonstrating the potential benefits of similar future agreements.
The Role of Federvini
At the Federvini General Assembly in Rome, industry leaders discussed these issues in the presence of institutional representatives and prominent Italian producers. They highlighted the critical role of exports in driving growth and value creation for the sector. The assembly called for the current Italian presidency of the G7 to work towards preventing commercial disputes from impacting the agri-food sector.
Federvini also underscored the importance of a new European approach, particularly in light of recent initiatives like health warnings in Ireland and Belgium. These regulations impact the wine, spirits, and vinegar sectors, which have not only economic but also social and cultural significance. The association hopes the new European Parliament will adopt a balanced approach, promoting the productive components of the industry, from employment to regional economies.
A Sector in Transition
Despite these challenges, Italian wine exports have shown substantial growth over the past two decades. Data from the Federvini Observatory, in collaboration with Nomisma and TradeLab, indicates that Italy's share of global wine exports increased from 17% in 2003 to 22% in 2023. This growth has solidified Italy's position as the second-largest wine exporter globally, with a remarkable increase in the number of markets where Italy holds a leadership position.
The spirits sector has also thrived, with exports increasing by 300% over the last twenty years, reaching a value of EUR 1.7 billion. Similarly, the vinegar sector has seen a 180% increase in export value. Overall, exports now represent a significant portion of the turnover for wines (50%), spirits (35%), and vinegars (48%).
Changing Consumption Patterns
The "away from home" consumption trend is also noteworthy. Italians increasingly see social occasions as opportunities for conviviality and sociability, with 80% choosing to drink during social events spread throughout the week. This shift has bolstered the evening aperitif phenomenon, with 14 million Italians participating in such events, generating a turnover of EUR 4.5 billion.
Looking Forward
In today's turbulent context, the future of Italy's wine sector depends on upholding principles of responsible and moderate consumption, exemplified by the Mediterranean Diet. Italy has the potential to become an ambassador of this unique lifestyle, promoting its virtuous model internationally. Federvini highlights the importance of the upcoming UN political declaration on non-communicable diseases in New York, emphasizing the need for realistic and balanced promotion of the sector.
Federvini President Micaela Pallini noted, "We are going through a year full of novelties and changes. Our companies are doing a lot to maintain their production capacity, investing in internationalization, research, and sustainability. However, to face the scale of international challenges, we need clear and fair competition rules, avoiding neo-prohibitionist tendencies and overcoming retaliatory trade duties."