A new report titled Ways out of the crisis, commissioned by ProWein, from Geisenheim University, based on a survey of over 2,000 wine industry members, highlights several key challenges and trends. Economic factors are the primary concerns in the industry.
Cost increases, global economic downturn and decreasing wine consumption are significant threats, with 73%, 59%, and 48% of the respondents in 2023 expressing concern about these issues, respectively.
Climate change is also a concern, but it ranks lower in priority compared to immediate economic issues. Only 45% view it as a major threat, despite 2023 marking a 60-year low in global wine production, partly due to climate impacts.
The survey indicates a shift from premiumisation to popularisation in the wine market. Sales in the popular/lower price segment are growing, with 32% reporting an increase, while the premium segment sees a decline, with 26% reporting growth and 38% a decrease. This trend is expected to continue over the next two years.
There’s a notable reduction in wine consumption, attributed to reduced disposable income and health and wellness trends. 76% of respondents cite lower income as a reason for reduced consumption, while 63% attribute it to health trends. This declining trend in consumption is expected to persist, even with economic improvements.
The report also highlights a surplus in wine supply, with 73% of producers acknowledging an excess over demand. This imbalance calls for a reduction in supply to rebalance the market.
Despite these challenges, the report suggests a holistic approach for the wine industry’s future, focusing on economic sustainability and improved communication. It’s thought that making wine more accessible and easier to understand could attract new consumers.