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PDO Wines’ Dominance Tested by Changing Global Consumer Preferences

Wines with Protected Designation of Origin (PDO) status continue to dominate the European Union’s bottled still wine exports in value terms.

Yet, paradoxically, they are also the category most affected by the sector’s recent contraction.

According to official data analyzed by Del Rey AWM, PDO wines account for 71.9% of the total value of bottled still wine exports from the EU. This confirms their central role in the European quality model, historically built around origin, terroir, and regulatory protection.

However, between February 2022 and October 2025, PDO wines experienced the steepest decline among major categories — both in value and volume.

Bottled Still Wine: The Core of EU Wine Exports

Bottled still wine remains the backbone of European wine trade, representing:

  • 60% of total export value
  • 48% of total export volume

By comparison:

  • Sparkling wines represent 29% of total value but only 16% of volume.
  • Bulk wines account for 27% of volume but significantly less value.
  • Other categories — fortified, semi-sparkling, bag-in-box — remain secondary.

Despite its importance, bottled still wine exports declined by:

  • -2.8% in value (€460 million lost, from €16.152 billion to €15.692 billion)
  • -16.2% in volume (a drop of nearly 6 million hectoliters, from 37.78 to 31.81 million hl)

The sharper contraction in volume compared to value reflects the inflationary period of 2022–2023, which temporarily sustained revenues despite declining shipments.

PDO Wines: Market Leaders Facing the Sharpest Correction

The most significant losses were recorded within the PDO category.

Of the €460 million total decline in bottled still wine value:

  • €424 million corresponds to PDO wines
  • PGI wines lost €71 million
  • Wines without designation lost €16 million
  • Varietal wines gained €51.7 million

In percentage terms:

  • PDO wines: -3.7% in value
  • PGI wines: -2.6%
  • Wines without designation: -1.7%
  • Varietal wines: +6.5%

The contraction in volume is even more striking:

  • PDO: -17.5% (3.3 million hectoliters lost)
  • PGI: -11.7%
  • Varietal: -9.9%
  • Wines without designation: -23.4%

While PDO wines remain dominant in absolute value, they have absorbed the majority of the market’s correction.

The Role of PGI and Varietal Wines

Within bottled still wine exports, wines with Protected Geographical Indication (PGI) account for 17.2% of exported value in the twelve months prior to October 2025.

The only category to show value growth during the analyzed period was varietal wine — products labeled by grape variety and vintage, officially recognized by the EU in 2008. Although still relatively small in overall weight, varietals increased revenue by €51.7 million, marking a 6.5% rise.

This suggests that consumers in certain markets may be shifting toward more straightforward labeling formats that emphasize grape variety rather than origin-based classification.

Structural Shifts in Market Share

Between February 2022 and October 2025:

  • PDO wines lost six tenths of a percentage point in value share.
  • Varietal wines gained half a point.
  • In volume terms, PDOs lost nine tenths, while PGIs and varietals slightly increased their share.

These changes may appear modest, but they indicate a gradual diversification of demand.

Sparkling Wines Cushion the Blow

Despite the decline in bottled still wine — which accounts for six of the nearly nine million hectoliters lost in total EU exports — sparkling wines have partially offset the downturn.

The sparkling category generated an additional €581 million during the period, helping total EU wine export value grow by +7.1% overall, despite volume contraction.

This dynamic highlights a broader transformation in global consumption patterns, where celebratory, lifestyle-driven, and premium sparkling wines are gaining traction over traditional still wines in certain markets.

Strategic Implications for the European Model

For decades, European wine strategy has prioritized the promotion and legal protection of PDO wines as symbols of quality, heritage, and territorial identity.

However, the recent data raises strategic questions:

  • Are international consumers increasingly driven by grape variety recognition rather than origin?
  • Is price sensitivity pushing buyers toward alternative categories?
  • Does the global market now demand greater flexibility in labeling and positioning?

The post-pandemic rebound of 2021 was followed by renewed contraction in early 2022. Inflation initially masked volume losses by sustaining revenue, but prolonged declines ultimately reduced overall value.

The data suggests that while PDO wines remain the pillar of European exports, diversification within the sector is accelerating. A more balanced portfolio — including sparkling wines, varietals, and alternative formats — may be essential to adapting to evolving consumer preferences and global trade conditions.

The European wine industry now faces a strategic crossroads: how to preserve the strength of its origin-based identity while responding to increasingly diversified international markets.

Source: Vinetur

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