Prosecco Doc, known for its excellence, failed to match the record of 2022, when 638.5 million bottles were sold. In 2023, the wineries between Veneto and Friuli bottled and delivered 616 million packages to the market, for a value of between 2.7 and 2.8 billion euros. This represents a contraction of 3.5% compared to the previous year, which drops to 2% excluding the rosé types. Despite the decline, Prosecco Doc remains the most important Italian wine denomination, with a vast extension from Vicenza to Trieste.
Inflation, International Crisis and Negative Harvest
2023 was a difficult year for Italian wine, with inflation, the international economic crisis and a disappointing harvest. These factors negatively influenced wine prices during the year. However, Italy stands out as the only major international producer not to have suffered a reduction in exports. In contrast, Spain recorded a 4% decrease in both volume and value, while France reduced volumes by 8% and value by 1%. Non-European countries such as Chile, Argentina and the United States showed even more significant declines, up to 30% in volume. Only Australia suffered an 8% decrease.
Wine production declining, but stocks high
Global wine production fell significantly in 2023, with Italy recording one of its poorest vintages in decades, estimated at 39 million hectoliters. However, stocks reached a record level of 51 million hectoliters by July 31, 2023. This excess stock in the cellar, together with a not particularly dynamic domestic and foreign demand, has negatively influenced wine prices for most of 2023.
Wine Price Trend in 2023
The contraction in production and the reduction in international trade characterized 2023 for wine. While the prices of table wines increased in the summer, the Ismea price index closed 2023 with a slight decline of 2% compared to the previous year. Exports in the first nine months of 2023 remained stable in terms of volumes but recorded a slight decline in values, mainly due to the different product mix, with bulk wines increasing by 19% in volume, while bottled wines were dropped by 5%. The sparkling wine sector also showed a slowdown, with a 3% decrease in volume compared to a 2.5% increase in value.
Consumers Remain Cautious
Domestic demand, especially in the sales of large-scale retail trade (GDO), is not particularly dynamic, with a 3.1% drop in volume in the first ten months of 2023, but with a 3.1% increase in value, driven from the increase in prices. Still wines suffered a decline of 4% in volume, while sparkling wines remained stable or recorded a slight increase. Consumers remain cautious in their purchases, favoring products on promotion or more convenient types, especially among sparkling wines.
Iwsr: Decline in Wine & Spirits Consumption Could Be Economical
The decline in the consumption of wine and spirits worldwide may not be structural but rather cyclical. Many attribute this decrease to a generational turnover in which the new generations do not completely replace the old ones in terms of volumes consumed and to a growing interest in a healthier lifestyle. However, according to the IWSR Bevtrac report, this decline is mainly linked to economic difficulties, such as global inflation and lack of wage growth, which influence different regions and countries in a more or less marked way.
Low and No Alcohol Trend: New Opportunities for Wineries
The trend towards low- or no-alcohol drinks is gaining ground around the world. Many wineries, including in Italy, are exploring this new market, producing alcohol-free wines for health, diet or driving safety reasons. While the production of alcohol-free wines is still being regulated in Italy, many wineries abroad are capitalizing on this emerging trend. Italian wineries such as Dr. Fischer-Hofstätter have successfully launched lines of alcohol-free wines, while in France companies such as Bordeaux Families and Berticot are investing in low-alcohol wines. Start-ups like Moderato are collaborating with large cooperatives to create production centers for high-quality alcohol-free wines. This trend looks set to grow, especially among younger consumers who are looking for healthy, low-calorie alternatives.
