Global View of International Wine Market

This document provides a comprehensive overview of the global wine market, including the description of important players, changing market trends, and branding and marketing strategies. It explores the production, consumption, and export statistics of wine, highlighting the impact of new world producers on the market. The document also discusses the top importing countries and their consumption patterns, as well as the strategies used by old world and new world producers. A reference list is included for further reading.

Running head: GLOBAL VIEW OF INTERNATIONAL WINE MARKET
Global view of international wine market
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GLOBAL VIEW OF INTERNATIONAL WINE MARKET
Table of Contents
Answer to question 1:.................................................................................................................1
Description of important players in the global wine market:.....................................................1
Answer to question 1:.................................................................................................................4
Changing wine market:..............................................................................................................4
Answer to question 1:.................................................................................................................5
Opinion on different branding and marketing strategies of wine:.............................................5
Reference list:.............................................................................................................................6

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
Answer to question 1:
Description of important players in the global wine market:
The global production of wine witnessed a decline of 23.6 mhl at 250 mhl in year
2017 compared to year 2016. Market of Spain, France, Italy, and Germany declined by 20%,
19%, 17% and 15% respectively. Production on wine in US in year 2017 was almost as high
as year 2016 which was estimated at 23.6 mhl. Wine production in Australia continued to
grow in volume at 13.7 mhl. The highest production of wine in year 2017 was Italy at 42.5
mhl followed by France and Spain at 36.7 mhl and 32.1 mhl respectively.
The world consumption of wine witnessed an increase of 1.8 mhl compared to year
2016. The position of United States was confirmed as the top global consumer since year
2011 with an estimated consumption at 32.6 mhl. It was because of an increase in the growth
of domestic demand in previous year 2016. In Europe, the declining consumption of
traditional consumer and producer countries saw a break. United Kingdom in year 2017
returned to its level of 12.7 mhl in year 2016. However, there was a slight increase in
consumption in year 2016. France witnessed a moderate decrease in consumption of wine to
27 mhl and an increase in consumption in Italy, Spain and Germany to 22.6 mhl, 10.3 mhl
and 20.2 mhl respectively. In year 2017, the overall consumption of wine in the market of
Australia and New Zealand stabilized.
The total export of all countries in year 2017 is estimated at 107.9 mhl indicating an
increase of 3.4% as against year 2016. The biggest exporter of wine in year 2017 was Spain
with total value of 22.1 mhl. There was increase in exports by more than 3% from the
countries such as Chile, New Zealand, Portugal, South Africa, France and Italy. Country
analysis depicts that wine trade is dominated by country such as Italy, Spain and France in

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
terms of value. Italy and France witnessed an increase in exports in terms of volume. The
wine market was dominated by France and Italy in terms of value with market share of 19.3%
and 26.9 respectively.
Major wine exporters
(Source: Oiv.int, 2019)
The five main countries importing wine include United Kingdom, Germany, France,
United States and China. In year 2017, Germany was the top importer by volume and as
slight decrease in import was recorded in year 2016 by 0.1%. The second biggest global
importer in terms of volume was United Kingdom at 13.2 mhl. The long term consequence of
Brexit on wine industry was not well known. The import of wine by United States in year
2017 saw an increase after a pause in year 2016 and a considerable increase in year 2015
(Grant et al., 2015). Consequently, the position of US as top importer in terms of value was
consolidated. On other hand, by volume, US occupied third position after United Kingdom
and Germany at 11.8 mhl of imports. A high import volume was reported by France in year
2017 with 7.6 mhl and the end of year had an exceptionally low production. Import of wine

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
in terms of volume recorded a significant rise in China with the domestic demand being the
biggest contributing factor (Russell & Kellershohn, 2017).
Major wine exporters
(Source: Oiv.int, 2019)
Answer to question 1:
Changing wine market:
The competitiveness on the world market on part of traditional players has been
reduced because of different reasons such as existence of trade union, high proportion of
manual work and short time working day. There is lack of high alcohol content in the wines
of the Old World countries compared to wines from new world. For the country such as
France, the response to changing taste of customers and fashion was very slow. In terms of
the production and consumption, the most important wine market in the world is Europe.
France being the largest old world wine country was slow to adapt to the changing

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
consumption and production trend and they also faced some challenges that was not internal
to the industry (Aleixandre et al., 2016).
The wine industry is driven by the consumption pattern and consumer and the old
world wine producing countries had advantage of tradition in home market (Wiedmann et al.,
2016). However, the home market has little room for expansion with most of the countries
experiencing declining consumption of per capita of wine. The new world producers have
been successful in capturing global market share and in producing consistent quality of wine
(Flores, 2018). Furthermore, the branding expertise and the quality and scale of production of
new world producers recorded an increase. All these made old world gradually lose their
market share to producers of new world.
Answer to question 1:
Opinion on different branding and marketing strategies of wine:
The Old world producers versus the grape strategy used by the producers of new
world are about the production technique involves in producing wine. Producers of new
world make heavy investment in innovation and technology that helps in enhancing the
quality and consistency of wines so that there is considerable reduction in the cost of
operations. Old world on other hand have historically given dominance to the origin of grapes
that have promoted specified regions through family owned business (Fiore et al., 2017).
Wine is considered as cultural symbol and selection of the most suitable region of growing
wine, technologies and varieties was dependent upon century of experience.
Production of wines from single variety of grapes is regarded as doubly interesting
strategy as it does not require producer prepare perilous and hard blend. The fact that was put
forward in the selling and promotion strategies is enabling consumers to easily recognize

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
some particular aromas. As a result of this, the new world countries focused on limited
varieties of grapes. Labeling the variety of grape would help consumers in buying wine
without having much knowledge. New world classify the wines based on varieties of grapes
rather than country of origin and this was reorganized as strategy of wine selling (Ellis &
Caruana, 2018).

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
Reference list:
Aleixandre, J. L., Aleixandre-Tudó, J. L., Bolaños-Pizarro, M., & Aleixandre-Benavent, R.
(2016). Viticulture and oenology scientific research: The Old World versus the New
World wine-producing countries. International Journal of Information
Management, 36(3), 389-396.
Ellis, D., & Caruana, A. (2018). Consumer wine knowledge: components and
segments. International Journal of Wine Business Research, 30(3), 277-291.
Fiore, M., Silvestri, R., Contò, F., & Pellegrini, G. (2017). Understanding the relationship
between green approach and marketing innovations tools in the wine sector. Journal
of cleaner production, 142, 4085-4091.
Flores, S. S. (2018). What is sustainability in the wine world? A cross-country analysis of
wine sustainability frameworks. Journal of Cleaner Production, 172, 2301-2312.
Grant, B., Mounter, S., Fleming, E., Griffith, G., & Villano, R. (2015). The Australian wine
industry at the crossroads: A comparison of performance across major wine-exporting
countries in 2000. Australasian Journal of Regional Studies, The, 21(1), 3.
Oiv.int. (2019). Retrieved 12 February 2019, from
http://www.oiv.int/public/medias/5958/oiv-state-of-the-vitiviniculture-world-market-
april-2018.pdf
Russell, I., & Kellershohn, J. (2017). Marketing Beer, Wine, Spirits, and Vinegar: Who Are
the Consumers? What Do They Want? How to Talk to Them so They Hear You.
In Post-Fermentation and-Distillation Technology (pp. 263-274). CRC Press.
Wiedmann, K. P., Behrens, S., Hennigs, N., & Klarmann, C. (2016). What is the Perceived
Value of Wine? A Cross-Generation Study of Consumer Wine Perception and

GLOBAL VIEW OF INTERNATIONAL WINE MARKET
Consumption Behavior. In Looking Forward, Looking Back: Drawing on the Past to
Shape the Future of Marketing (pp. 551-551). Springer, Cham.