The 2024 of wine in Italy
Like every year, ProWein has published its commercial report based on a survey conducted by the University of Geisenheim, involving over 2,000 operators in the wine sector in various countries. The findings show an industry facing several challenges.
1. The general mood of the industry
In 2023, the industry faced rising costs and a global economic recession. Declining consumption, low profitability and climate change have also been growing concerns. To respond to these challenges, companies have adopted cost reduction and revenue improvement strategies. In 2024, expectations are slightly positive, but profitability remains a concern.
2. Price segment trends
In 2023, industry players observed an increase in sales of cheap wines, while premium wines saw a sharp decrease. This model is different from what the manufacturers report. In the future, the trade expects increased sales for budget and premium wines.
3. The reasons for the decline in wine consumption
Reduced consumer income was the main reason cited for the decline in wine consumption, followed by a shift towards a healthier lifestyle and changes in alcoholic beverage preferences. These factors vary from country to country.
4. How to restore balance between supply and demand for wine
Most wineries believe there is an oversupply in the market. Some producers are asking for public support for cutting down vineyards. Strategies to support demand include attracting young consumers and reducing sales prices. However, there is debate about how to better reach young consumers without increasing marketing investments.
5. The future of wine marketing
Both wineries and the trade agree that other alcoholic beverages reach young consumers better. However, there is disagreement on the need to make the industry more profitable to communicate with the market more effectively. Some believe that more premium positioning can increase sales.
Inflation in the USA and the impact on wine sales
In the United States, inflation caused a decrease in wine sales, with a year-on-year decline of 11% in November 2023. However, Italian labels limited losses to -3% in November and -3.5 % during the year. Italian sparkling wines showed a growth trend, while still wines recorded significant declines.
Exports and the global situation of wine
Globally, wine production has declined, with Italian production expected to see a 22% slump in 2023. Wine exports have been negatively impacted by declines in consumption in some major markets, including the US, UK , and Canada. However, Italy limited losses in terms of export volumes.
In conclusion, the wine sector in Italy is facing significant challenges in 2024, but there are also opportunities to adapt to new consumption trends and consumer needs. The decline in global consumption is not only due to the pandemic but also to changes in consumer preferences and the effect of inflation. Marketing and product positioning strategies will be crucial to address these challenges and ensure success in the wine industry.
