Market Summary – a wine industry review

The European Union occupies a leading position on the world wine market, accounting for 45 % of wine-growing areas, 65 % of production, 57 % of global consumption and 70 % of exports in global terms.

Global wine showed solid growth in volume terms in 2003, up nearly 2% to 25,066 million liters. Still red wine provided much of the impetus for volume growth in the world wine market over survey period, with sales rising nearly 12% between 1998 and 2003. Growth was driven in the large part by increasing consumer interest in its potential health benefits.

Growth was also driven by increased volume sales in emerging markets, such as China and Russia, underpinned by improving living standards and rising disposable incomes. The gradual "Westernization" of the lifestyles of younger consumers was also a significant driver of growth in many markets. Changing patterns of consumption, with wine fitting increasingly easily into developing lifestyles also led to increased sales, including Australia and some Scandinavian countries.

Wine consumption has grown for the 13th consecutive year, rising 3.4 percent in 2006. Sales were so strong that if the wine industry's expansion continues at this pace, the United States will become the largest wine market in the world by the end of the decade where wine sales are expected to grow about 2 percent annually over the next two years.

Overall, wine consumption rose to 283.1 million 9-liter cases in 2006. Domestic wine sales rose 2.6 percent to 209.4 million cases, while imported wines rose 5.7 percent to 73.6 million cases.

About 33 percent of consumers drink wine at least somewhat on a regular basis.

References:

Euromonitor International, July 20, 2004

European Commission, agriculture and Rural Development, Agricultural Markets, Wine

Wine Business Online, August 13, 2007

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