At the end of December 2023, wine stocks in Italy amounted to 59.3 million hectoliters, up compared to November 2023 but still lower than December 2022. The majority of wine is held in the Northern regions, with Veneto on the front line.
The panorama of geographical indications is very concentrated, with the top 20 denominations representing the majority of stocks of wines with geographical indications. Despite the large number of registered geographical indications, stocks remain concentrated.
Internationally, the Italian wine sector is facing challenges, with Asia struggling and the United States struggling with declining sales and full warehouses. International tensions and rising costs, also linked to the Suez Canal crisis, are putting further pressure on the market.
The decline in consumption has led to greater selection by consumers, with a preference for high-end wines. However, the Italian wine sector also faces a poor harvest, which could lead to price increases that are difficult to absorb at the distribution level.
Despite these challenges, there is a beacon of hope in the direction of the qualitative leap. The Italian wine sector must continue to work on positioning to prepare for a possible market recovery in 2025.
Decline in wine sales in large-scale retail trade
In 2023, wine sales in large-scale retail trade (GDO) in Italy recorded a decline of 3.1%, falling below one billion bottles sold. This decline was primarily driven by sales of still wines, with red wines experiencing a decrease of 4.9%. Sparkling wines, however, remained stable compared to the previous year thanks to the "low cost" Charmat non-Prosecco.
These changes reflect a redefinition of the purchasing behavior of Italian consumers. Although consumption has decreased, consumers tend to be more selective and opt for high-end wines. This represents a challenge for the Italian wine sector, which must adapt to these new behaviors.
The World Wine Market in Decline
The global wine market recorded a significant decline in 2023, with a loss of 802 million euros. This decline was evident in both value and volume terms. Countries like France and Italy have withstood the blow better than others, but the growth of the sector is far from its golden years.
Global wine trade fell 2.1% in value terms year-on-year through September 2023, with exports falling 7.2%. This data reflects the challenges the industry is facing, including global economic instability and rising costs.
Relaunching Italian Red Wines
Red wines in Italy are facing declining consumption, with a 15% decline compared to 2019. This presents a challenge for Italian red wines, including Amarone della Valpolicella, Brunello di Montalcino and Barolo. Even abroad, Italian red wines are recording lower consumption.
However, there is still hope for Italian red wines. The Valpolicella Consortium is looking for ways to recover the market and attract new consumers. These efforts could include reducing prices and expanding into new markets.
Growth of the Sparkling Wine Market in the United States
Despite the challenges, the U.S. sparkling wine market is growing. Between 2017 and 2022, bubbles experienced an annual growth rate of 6% in volume, representing more than 12% of the entire wine category. Italy continues to exert a strong influence on this market, with Prosecco at the forefront.
The sparkling wine sector in the United States is constantly growing thanks to an increasing base of loyal consumers who consider sparkling wines suitable for everyday consumption.
Business crisis in France
In France, business insolvencies are increasing, with a 36% increase in 2022. In the viticulture sector, insolvencies increased by 47.7%, with one in ten companies in the agricultural sector coming from viticulture.
This phenomenon comes in a context of protests in the wine sector in France and is part of a broader crisis in French and European agriculture. The French government has announced support measures to address the crisis, but the situation remains complex.
