A Global View of the International Wine Market: Analysis and Insights

This report provides a comprehensive analysis of the global wine market, examining the significant players from producer, consumer, importer, and exporter perspectives. It explores the changing dynamics of the market, particularly the increasing demand in Asian countries, with a focus on China's growing influence. The report highlights the challenges to traditional players and discusses the impact of evolving consumer preferences. Furthermore, it offers insights into different marketing and branding strategies, contrasting the AOC approach with the grape variety strategy employed by new world producers, and their focus on customer needs. The conclusion summarizes the key findings, emphasizing the market's evolution and the potential for new world producers to gain prominence due to their customer-centric approach.

Running head: A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
A Global View of the International Wine Market
Name of the Student:
Name of the University:
Author’s Note:

1A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
Table of Contents
Introduction:...............................................................................................................................2
Important players in the global wine market:............................................................................2
Understanding of the changing wine market:............................................................................3
Opinion on different marketing/branding strategies:.................................................................4
Conclusion:................................................................................................................................4
References:.................................................................................................................................5

2A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
Introduction:
The current assignment would emphasise on identifying the significant players
operating in the global wine market from the perspectives of different users. In addition, the
paper would provide a critical insight on the changing wine market challenging status quo
and threatening dominant position of the conventional players. Finally, the assignment would
shed light on providing opinion on different branding/marketing strategies in terms of the
AOC strategy and grape variety strategy.
Important players in the global wine market:
There are some significant players operating in the global wine market from different
perspectives. From the perspective of the producers, the top five wine producing
organisations include E & J Gallo, Constellation Brands, The Wine Group, Treasury Wine
Estate and Vina Concha y Toro. These organisations produce nearly 10% of the overall wine
that people consume around the world (Anderson, Nelgen & Pinilla, 2018). Moreover, all
these organisations have a number of subsidiaries and independent small scale operations.
From the perspective of the consumers, the major players in the global wine market
include hypermarkets and supermarkets, specialist retailers and other online channels. These
channels provide a variety of wine brands from which the customers could select based on
their own preferences. From the perspective of importers, the top nations include USA, UK,
Germany, China, Canada, Japan, Hong Kong, Netherlands, Switzerland and Belgium. From
the exporters’ perspective, the leading nations are France, Italy, Spain Australia, Chile, USA,
New Zealand, Germany, Portugal and Argentina (Cevik & Sedik, 2014).

3A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
Understanding of the changing wine market:
With the increasing demand of wine in Asian countries, the global wine market is
expected to grow by 25% within 2022 and the majority of this growth would be boosted by
China and other Asian nations. More precisely, the global wine market is expected to have a
rise in value from $304 billion in 2018 to $380 billion in 2022 at 3.4% CAGR ((Anderson,
Nelgen & Pinilla, 2018).
It is evident from maximum consumer markets that China is the significant driver of
growth with its growing middle-class incurring more on luxury products (Bresciani et al.,
2016). It is further estimated that China is expected to surpass UK to emerge as the valuable
global wine market after US. This is because China is providing high quality wine by tapping
slowly into the new markets. This poses a significant threat to the traditional global market
players like France and UK, which might minimise their demand for wine in the global
platforms (Insel, 2014).
It has been further estimated that China would experience an increase in wine
consumption by 39.8% within 2022. Since China is yet to become a strong wine producing
nation, the domestic market growth would be boosted by imported wines. However, it is to be
borne in mind that the quality of domestic wine of China is improving gradually due to
creation of some finest boutique wineries in the nation. Therefore, like any other consumer
sector, the global wine industry might experience some changes as well in future. The new
players might increase their wine production, which could minimise the product demand of
the traditional global players; thereby, challenging the status quo (Duarte Alonso et al.,
2014).

4A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
Opinion on different marketing/branding strategies:
The AOC category covers those, which have given the traditional players the
reputation of finest wine producers. On the other hand, the top wine producers in new world
countries like Australia are creating easy to understand, exciting and fun products for the
contemporary wine consumers having relatively lower level of knowledge (Nella & Christou,
2014). Their wine bottles clearly mentioning grape variety used for making the product help
the consumers, who might be the beginner wine consumers. Thus, these producers focus on
meeting the needs of the consumers, while the old world wine makers could be explained as
producer-based. By considering all these aspects, the new world countries could become
more popular than the old wine producers due to their focus on the changing needs,
preferences and tastes of the customers.
Conclusion:
From the above discussion, it is evident that the global wine market is changing and
China might become one of the popular wine producing nations after USA. Along with this,
it has been analysed that the new world producers focus more on the needs of the customers
and thus, they could surpass the old world producers in the near future.

5A GLOBAL VIEW OF THE INTERNATIONAL WINE MARKET
References:
Anderson, K., Nelgen, S., & Pinilla, V. (2018). Global wine markets, 1860 to 2016: a
statistical compendium. University of Adelaide Press.
Bresciani, S., Ferraris, A., Santoro, G., & Nilsen, H. R. (2016). Wine Sector: Companies'
Performance and Green Economy as a Means of Societal Marketing. Journal of
Promotion Management, 22(2), 251-267.
Cevik, S., & Sedik, T. S. (2014). A barrel of oil or a bottle of wine: how do global growth
dynamics affect commodity prices?. Journal of Wine Economics, 9(1), 34-50.
Duarte Alonso, A., Bressan, A., O’Shea, M., & Krajsic, V. (2014). Exporting wine in
complex times: A study among small and medium wineries. Journal of Small
Business and Enterprise Development, 21(2), 345-364.
Insel, B. (2014). The evolving global wine market. Business Economics, 49(1), 46-58.
Nella, A., & Christou, E. (2014). Segmenting wine tourists on the basis of involvement with
wine. Journal of Travel & Tourism Marketing, 31(7), 783-798.