As the wine industry navigates the post-COVID era, 2024 has proven to be another challenging year.
The initial optimism of the post-pandemic period quickly waned, giving way to a more difficult landscape. Following a turbulent 2023, 2024 confirmed the ongoing negative trend, particularly in international wine trade. Despite some pockets of growth, especially in sparkling wines, the overall picture is one of decline, with only a few markets showing positive results, such as the United States, Canada, China, and Brazil.
Key insights from the Wine Monitor Forum, held live from Bologna, underscore the continuing struggles of the global wine sector. According to Denis Pantini from Nomisma, the twelve major import markets—representing over 60% of global wine imports—saw a 0.8% decrease overall. However, Italy bucked the trend, with imports increasing by 0.2%, largely driven by its sparkling wine exports, particularly Prosecco. This shift was especially pronounced in markets like the United States (+11.2%), Canada (+9.4%), Australia (+10.2%), and China (+11%), where Italian bubbles performed well despite broader global declines in wine consumption.
The situation for French wine, particularly Champagne, has been far more difficult. With a 10.8% drop in volumes globally, France’s wine exports struggled, facing significant downturns in almost all major markets. This was in stark contrast to Italy, which enjoyed positive growth, especially in sparkling wines and PDO (Protected Designation of Origin) varieties like Prosecco (+12.3%).
The impact of inflation on domestic wine sales, especially in Italy, has been notable. The Italian market saw a decline in volumes sold through modern distribution channels, with red wines (-4.6%) and sparkling wines (-7.4%) experiencing particular struggles. However, discount stores reported modest growth in value, largely due to strong sales of sparkling wines, which continue to perform well in both domestic and international markets.
Emerging Markets and Opportunities for Italian Wines
One of the brighter aspects for Italian wines is the growth in emerging markets. The expansion of wine exports in Eastern Europe and Latin America has been particularly promising. Countries like Poland, Romania, Mexico, and Brazil are increasingly appreciating Italian wines, with Brazil leading the charge with a 12.9% increase in Italian wine imports in 2024. This growth, combined with Italy’s premium positioning in markets like Brazil, where Tuscan and Piedmontese reds are especially valued, offers a glimpse of hope in an otherwise challenging global market.
The Mercosur trade agreement, which includes Brazil, Argentina, and other Latin American nations, continues to open new doors for Italian wine exports. While the purchasing power in these markets is not as high as in Europe or North America, the demand for quality wines, especially from Italy, remains strong. Italian wines, particularly reds, are gaining ground in these regions, with an average price per liter of 3.76 euros, which is higher than competitors like Chile and Argentina but still lower than France.
Changing Consumer Preferences and the Rise of Dealcoholized Wines
Another important factor influencing the global wine market is the evolving profile of consumers. Younger generations, particularly Gen Z, are showing less interest in traditional wine consumption, preferring to drink wine only on special occasions and placing greater emphasis on alcohol content and sustainability. This has contributed to the rise of dealcoholized wines, which are gaining traction, especially in markets like the United States, where there is a growing demand for non-alcoholic options.
In fact, dealcoholized wines have been making significant strides in the U.S. market, with increased listings from distributors and even a growing presence in the HoReCa sector. Producers like Argea have embraced this trend, with a portfolio of dealcoholized wines that have seen promising early commercial results. As the younger generations increasingly seek lower-alcohol or non-alcoholic options, the demand for these types of products is expected to grow, albeit at a slower pace compared to traditional wines.
The Future of Wine Exports: A Look Ahead
Looking toward the future, wine producers, particularly from Italy, will need to adapt to the challenges of protectionism, changing consumer preferences, and the rise of new markets. While mature markets like the United States, Canada, and the United Kingdom remain important, the competition is intensifying. At the same time, newer markets in Eastern Europe and Latin America present opportunities for growth.
The global wine industry is also expected to undergo significant transformations as the effects of climate change and evolving consumer preferences continue to reshape the landscape. Innovations in viticulture and winemaking, as well as the development of new wine formats, such as smaller bottle sizes or more sustainable packaging, will be essential to meet the needs of the modern wine consumer.
Source: WineNews