The sparkling wine market - Italy (2023)

1.1 Definition and presentation

Spumante is a wine with significant levels of carbon dioxide in it, which makes it sparkling, and at the same time different from sparkling wines that have less effervescence than sparkling wines. Although there is a greater tendency to associate it with the famous Champagne, Italian sparkling wine is going through a steady and positive propulsion. Sparkling wine is usually white or rosé, but there are examples of red sparkling wines such as Italian Brachetto, Bonarda and Lambrusco, and Australian sparkling Shiraz.

Over the past two decades, the world wine market has undergone significant changes. One phenomenon that has caught the attention of many industry observers and analysts is the rise of sparkling wines. Overall, the market is growing worldwide. The value of Italian sparkling wine production is 2.85 billion, of which only 2 billion are sold abroad, in 2022, reaching 21 percent of total wine production [MediumBank].

Another interesting aspect of this market is the diversification of sparkling wine production, which is focused on four EU countries (Italy, France, and Spain). Italy is the 1st largest producer of sparkling wine in the world, followed by France. In Italy, sparkling wine production is registered under Ateco code 11.02.20 "Production of sparkling wine and other special wines."

The Italian sparkling wine market is booming. In 2000, sales of bubbly wine, in Italy, were around 600 thousand hectoliters and today have reached more than 2 million hectoliters with an impact on total wine consumption of 15 percent. In 2021, Italy exported 4.9 million hectoliters of sparkling (+200% over 2010 versus +4% for still wines) for a value of €1.8 billion. The main trading partners for Italian sparkling wine are the United States, the United Kingdom, and Germany [IlSole24Ore].

The most popular types of Italian sparkling wine are Prosecco, followed by Franciacorta. More than 500 million bottles of this wine are produced each year [Borsa Italiana]. This type of wine, due to appellation and origin regulations, can only be produced in 9 regions of Italy. The Friuli Venezia Giulia region has the highest concentration of vineyards and sparkling wine producers, with 12,000, with an average size of two hectares each.

Spumante is also appreciated nationwide. About 30 million people drink a bottle of sparkling wine each year, which corresponds to more than 65 percent of the adult population.

The COVID-19 pandemic had disastrous effects on this market. It recorded a 28.8 percent loss in 2020 compared to the previous year. Unlike regular wine, which in Italy is consumed as much at home as outside, sparkling wine is consumed mainly in bars, cafes, hotels, restaurants, or during special occasions (weddings, graduations, parties, etc.). On the other hand, the profitability of sparkling wines was more resilient to the impact of the pandemic by contracting by 1 point compared to a 1.9-point reduction in non-sparkling wines [MedioBancaReport].