The wine market - Italy (2024)

1.2 The global market

In ****, the world wine market is estimated at $***.* billion. A modest compound annual growth rate (***) of *.**% is projected for the period ****-****. The world wine market is projected to reach a total value close to $*** billion in ****.

Wine Market World, ****-****, in billions of dollars Vantagemarket*.research

Regarding wine production, globally between **** and **** there is evidence of a reduction in the total amount produced. During the period analyzed, total production decreased from ***.* million hectoliters to ***.* million hectoliters, marking a contraction of *.* percent. The decline appears to be constant throughout the entire period, except in **** when compared to **** there was an anomalous increase in production of **.*% and a higher value than in ****. Wine production World, ****, million hectoliters OIV Italy is the world's leading wine producer. In **** the country contributed **.*% of world wine production, ahead of France (***). Wine production, breakdown by country World, ****, % OIV Finally, analyzing world wine consumption, the United States occupies the top spot with **.* percent of total consumption (***). Wine consumption, breakdown by country World, ****, % OIV

1.3 The Italian market

Between **** and ****, Italian wine production is essentially unchanged at **.* million hectoliters. However, when analyzing individual vintages, it is possible to show an increase between **** and **** of *.* percent, a subsequent decline between **** and **** (***). Increasing climate instability has important consequences for the sector, leading to wide fluctuations in production between years.

Wine production Italy, ****-****, in millions of hectoliters OIV

Analyzing the value of wine production sold, between **** and **** shows a definite growth. During the period analyzed, the value of production sold increased from *.** billion euros to **.** billion euros, marking a growth of **.* percent. However, the jump recorded between **** and **** (***)

Value of wine production sold Italy, ****-****, in billion euros Istat Non-white wines produced in specified regions (***) with **.* percent. Finally, non-white wines not produced in specified regions, other white wines and grape musts collect **.* percent, **.* percent and *.* percent of the total value, respectively. Production sold of wines, breakdown by type Italy, ****, % Istat Finally, considering total household spending on wine purchases shows a contraction between **** and ****. During the period analyzed, total spending fell from €*.** billion to €*.** billion (***). While between **** and **** there is a *.*% growth. Total household spending on wine purchases Italy, ****-****, in billions of euros Istat

1.4 Import - Export

HS Code **** "Wines of fresh grapes, including liqueur wines" is considered for the analysis of Italy's wine imports and exports.

Italy can be defined as a net exporter of wine. Between **** and ****, the export coverage ratio, determined by the ratio of exports to imports multiplied by ***, is always above ****%, ranging from ****.*% to ****.*%. Specifically, during the period analyzed, the value of exports increased from $*.** billion to $*.** billion, marking a growth of **.*%, while the value of imports increased from $*** million to $*** million, representing a growth of **.*%.

Wine import - export Italy, ****-****, in billion euros and % Uncomtrade

Looking more specifically at trade flows out of Italy, the United States is Italy's main trading partner. In ****, **.* percent of total Italian exports are collected from the United States. This is followed by Germany (***) while the other countries individually do not reach *.*% of total exports. Main destination countries for wine exports Italy, ****, % Uncomtrade As for imports, the trade flow is significantly more concentrated around a few players. In ****, **.*% of the value of Italian imports is collected solely from France. This is followed by Spain (***). The other countries together collect *.* percent of total imports. Main countries of origin of wine imports Italy, ****, % Uncomtrade

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** had major repercussions on the Italian economic system. The sector related to the production and sale of wine is not exempt from the effects brought about by the outbreak of the conflict. Between January **** and December ****, the consumer price index for the purchase of wine rose by * points, representing a * percent increase in selling prices. Compared to ****, the price increase stands at *.* percent.

Consumer price index for the purchase of wine Italy, ****-****, base ****=*** Istat

The increase in consumer prices is nothing but a reflection of the increase in production costs. Between January **** and November ****, the producer price index for wines shows an increase of *.* points, representing a *.* percent increase in production costs over ** months. Compared to ****, producer prices increased by **.*%. Producer price index for wines Italy, ****-****, base ****=*** Istat

2.1 Demand in Italy

Between **** and ****, there is evidence of an increase in wine consumption in Italy. During the period analyzed, total consumption increased from **.* million hectoliters to **.* million hectoliters, representing a growth of *.*%. However, while between **** and **** growth stands at **.* percent, between **** and **** total consumption is found to contract by *.* percent.

Wine consumption Italy, ****-****, in millions of hectoliters OIV

Also growing between **** and **** is the number of regular wine consumers. Over an *-year period, the total number of Italians who claim to habitually consume wine increased from **.* million to **.* million, marking a growth of *.* percent. However, the growth is concentrated between **** and **** (***) while between **** and **** the figure is essentially stable. Wine Consumers Italy, ****-****, in millions Istat Finally, analyzing the preferences of Italian consumers, in **** **% of purchases in the GDO channel (***). Volume of wine sales in the large-scale retail trade, breakdown by type Italy, ****, % Ismeamercati

2.2 Demand drivers

For the analysis of the drivers of wine demand in Italy, the distribution of consumers in different age groups and by professional status are considered.

Regarding the distribution of consumers in different age groups, those over ** gather the highest share of consumers, accounting for **.* percent of the national total. They are followed by those aged **-** , accounting for **.* percent of the total, and young people aged **-**, with **.* percent of the total. Finally, the **-** age group gathers **.* percent of consumers while baby boomers (***) are **.* percent of total consumers.

Wine consumers, breakdown by age group Italy, ****, % Istat

Regarding the occupational status of consumers, those retired from work account for **.*% of total consumers. They are followed by executives, middle managers and white-collar workers with **.* percent and blue-collar workers with **.* percent of the total. Managers/entrepreneurs and the unemployed collect *.* percent and *.* percent of total consumers, respectively, while students are just *.* percent. Those in other employment status are **.* percent of the total.

Wine consumers, breakdown by occupational status Italy, ****, % Istat

2.3 Geographical distribution of demand

To visualize the geographical distribution of wine demand in Italy, two maps were created with the geographical distribution of wine consumers and average monthly household expenditure in each Italian macro-region.

Regarding the geographical distribution of wine consumers, the Northwest collects the largest share, accounting for **.* percent of the national total. The Northeast, Center and South have similar values, amounting to **.* percent, **.* percent and **.* percent, respectively. Finally, just *.* percent of total Italian consumers are concentrated in the Islands.

Regarding Italian households' spending on wine purchases, again it is in the Northwest of the country that the highest value is recorded, amounting to **.** euros spent on average each month. This is followed by the Northeast and the Center, where average monthly spending stands at **.** euros and **.** euros, respectively. In the South, families spend an average of *.** euros per month, while in the Islands, the average expenditure drops to *.** euros per family.

2.4 New demand trends: the alcohol-free alternative

Consumer interest in alcohol-free and low-alcohol wines is growing, reflecting a shift in drinking habits and preferences. This trend is driven in part by increased health awareness, environmental concerns, and demand for fresher, lighter styles of beverages. Consumers, especially younger generations, are showing a growing interest in healthier and more responsible beverage options. However, creating alcohol-free and low-alcohol wines that maintain the sensory qualities of traditional wines is a challenge for producers, as the lack of alcohol greatly affects taste and texture. Despite this, companies such as BevZero are investing in de-alcoholizing techniques to preserve the complexity and balance of nonalcoholic products.(***)

In ****, the global alcohol-free wine market is estimated at $*.** billion. However, between **** and ****, this market segment is expected to grow sharply, with a compound annual growth rate (***) of **.**%, by virtue of which the world alcohol-free wine market could reach a total value of $*.** billion by the end of the period.

Alcohol-free wine market World, ****-****, in billions of dollars ***Marketupdates

3.1 The market structure

in order to analyze the market structure, enterprises under Ateco Code **.** "Production of wine from grapes" are considered. In particular, the number of active enterprises, the number of employees in active enterprises and the legal form of different enterprises are analyzed.

Number of enterprises

Between **** and ****, the total number of enterprises active in grape wine production appears to be decreasing. During the period analyzed, the total number of enterprises decreased from **** to ****, marking a decrease of **.* percent. The decline appears to be constant throughout the entire period, and the individual changes between years show essentially homogeneous values. In this sense, the outbreak of the pandemic in **** does not seem to have resulted in major repercussions for the industry.

Active enterprises under Ateco Code **.** "Production of wine from grapes" Italy, ****-****, in number Istat

Employees Between **** and ****, the number of employees in active enterprises also appears to have declined. During this period, the total number of employees fell from **,*** to **,***, representing a decrease of *.* percent. Again, the decline appears to be steady (***). Moreover, in contrast to the previous case, the outbreak of the pandemic in **** had a significant impact on the industry: between **** and ****, the total number of employees dropped by *.*%. However, ...

3.2 The value chain

3.3 The main manufacturers

A list of the main players active in the Italian wine market is proposed below:

Wineries

Italian Wine Brands s.p.a: is an important wine group formed from the merger of Giordano Vini and Provinco Italia. These two companies, leaders respectively in the production and direct sale of Italian wines and in the production and distribution of wines on international markets for large-scale organized distribution, have formed a group that today is listed on AIM Italia, a market of the Italian Stock Exchange dedicated to small and medium-sized Italian companies aiming to invest in their own growth. It has a significant presence in both domestic and international markets, expanding its production offerings and customers, and diversifying its territorial sales. The company is also committed to environmental sustainability, with a focus on defending biodiversity in the vineyard, safeguarding the wooded heritages surrounding the estates and vineyards, and the judicious use of water to avoid its waste. Italian Wine Brands has also acquired Enoitalia, founded in **** and controlled by the Pizzolo family, which has recorded significant revenues and contributed to the group's expansion in international markets, particularly in the United Kingdom and the United States.

Argea s.p.a: is a newly ...

3.4 Wine production

When it comes to grape production, between **** and **** the area under vines present in Italy increased from ***,*** hectares to ***,*** hectares, representing a growth of *.* percent. The growth appears to be constant during the entire period, with the exception of only **** (***).

Area planted with vines Italy, ****-****, in thousands of hectares Istat

The area planted with organic vines is also growing. Between **** and ****, the total area under organic cultivation grew by **.* percent, from ***,*** to ***,*** hectares. While in **** the area under organic vines was **.*% of the total area under vines, in **** this represents **.*% of the total.

Organic area under vines Italy, ****-****, in thousands of hectares Wineshop

Finally, analyzing the types of grapes grown, in **** **.* percent of the area planted with vines is for the production of PDO wines. This is followed by grapes for PGI wines with **.* percent, while grapes for wines other than PDO and PGI harvest **.* percent of the total area under vines. Area planted with vines, breakdown by type of wine Italy, ****, % Istat

4.1 Type of the offer

In Italy, wine production is distinguished by its diversity and quality, with a wide range of types that vary in color, body, taste, and production methodology.Each grape variety gives the wine unique characteristics, both in terms of aroma and taste, which are further influenced by the specific terroir and winemaking techniques adopted in each region.The two major categories of Italian wine are red wines and white wines, which in turn are divided into still and sparkling wines.

Red wines

Still red wines: these wines are known for their full body, intense flavors and long persistence. They are typically more tannic and have flavors ranging from fruity to spicy. They are ideal with rich, flavorful foods such as red meats, game and aged cheeses. Some of the most widely used grape varieties include: Sangiovese: used for wines such as Chianti and Brunello di Montalcino. Nebbiolo: grape variety for Barolo and Barbaresco. Barbera: commonly used in Piedmont to produce Barbera wines. Montepulciano: main grape variety for Montepulciano d'Abruzzo. Aglianico: used in southern Italy, especially for Taurasi and Aglianico del Vulture.

Sparkling red wines: these wines have a carbon dioxide content that makes them slightly effervescent. They are generally lighter and more ...

4.2 The prices

To analyze price trends related to wine consumption in Italy, consumer price indexes over the period ****-**** are analyzed for * different product types.

Table wines

Between **** and ****, the price index for table wine consumption shows an increase of *.* points, equal to average price increase of *.*%. Specifically, it shows a *% increase between September **** and September ****, while between September **** and September **** the price index shows a *% decrease. However, the outbreak of conflict in February **** resulted in an *.*% increase in prices over the next ** months.

Consumer price index for table wines Italy, ****-****, base ****=*** Istat

Quality wines.

The price index for quality wines shows the smallest increase among the * different product types. In fact, between **** and ****, prices increased by an average of just *.*%. While between January **** and January **** the index shows an increase of *%, between January **** and January **** this drops by *.* points. Finally, the outbreak of the conflict in February **** also led to an increase in prices: between January **** and September ****, prices rose by an average of *.*%, while between September **** and December **** the indica goes back down again (***).

Consumer price index for quality wines. Italy, ****-****, base ****=*** Istat Sparkling wines Among the different product types analyzed, sparkling wines show the largest increase in the ...

4.3 New supply trends: the rise of Canned Wine

The canned wine market is experiencing remarkable growth, driven by several key factors that respond to changing consumer preferences. Key drivers of this trend include the growing demand for convenient, portable, single-serve beverage options. Canned wines offer a lightweight and easily transportable solution compared to traditional glass bottles, making them particularly attractive to consumers seeking flexibility in their beverage choices, whether for outdoor activities, events, or simply on-the-go lifestyles. In addition, the canned wine market has benefited from a broader cultural shift toward sustainability and environmental awareness. Aluminum cans are lighter than glass bottles, resulting in lower transportation emissions and a reduced overall carbon footprint. In addition, aluminum is highly recyclable, aligning with the growing green mindset of consumers who favor sustainable packaging options. The perception of wine in a can has transformed from being associated with inferior beverages to a symbol of innovation and quality. Many reputable wine producers are now adopting this format, offering premium wines in cans. This shift has helped change consumer attitudes and overcome traditional barriers, making wine in cans more acceptable and attractive to a diverse audience.(***)

By ****, the global market for canned wine reached a total value of more than $*.* billion. As in the ...

5.1 The legislation

The wine market, as well as other sectors of the agri-food industry, is subject to regulation by both national and European regulations. The various laws are aimed at ensuring the quality, safety and origin of the product. Some of the main legislative issues pertaining to the wine market are:

Law No. *** of December **, ****: establishes the organic regulation of vine cultivation and wine production and trade (***). Regulation (***) ****/****: on the definition, description, presentation, labeling and protection of geographical indications of aromatized wine products. Delegated Regulation (***) No. ****/**** of the European Parliament and of the Council with regard to the wine-growing areas in which the alcoholic strength may be increased, the authorized oenological practices and applicable restrictions on the production and preservation of wine products, the minimum percentage of alcohol for by-products and their elimination, and the publication of OIV sheets. Commission Regulation EU No. ***/****: laying down detailed rules for the application of Council Regulation (***) No. ***/**** on the common organization of the market in wine with regard to support programs, trade with third countries, production potential and controls in the wine sector. EU Delegated Regulation ***/****: concerning (***) the vineyard register, compulsory declarations and market control information, documents accompanying the transport of products and record keeping in ...

6.1 Segmentation

• Italian Wine Brands
• Argea
• Casa Vinicola Zonin
• Marchesi Antinori
• Cantine Riunite&Civ
• La Marca Vini e Spumanti
• Gruppo Caviro
• Cavit