Consumer Crisis: Trend or Shock?

Wine sales are falling worldwide, but since when? Is it the result of a long-term trend or just an acute shock due to the global economic situation? Figures on trends and exceptions.

Reading time: 2m

Development of total wine consumption 1990-2022 (in m/hl)*
Development of total wine consumption 1990-2022 (in m/hl)*

While wine consumption in Germany has remained fairly stable over the years (albeit with a downward trend), the USA has been growing for a long time. In 2023, however, consumption is said to have declined here too, as can be seen from the latest Silicon Valley Bank report. 

In the major wine-growing countries of Italy, France and Spain, consumption has fallen particularly dramatically.

Wine

There was sobering news at the annual presentation of the Silicon Valley Bank report—young consumers are showing no signs of embracing wine as they mature.

Reading time: 3m 50s

Wine Sales in Germany

Although wine sales in Germany fell by 4% in 2023 compared to the previous year and the number of households buying wine fell by as much as 4.5%, sales remained stable. As the German Wine Institute (DWI) reports with reference to Nielsen data, the decline in sales is mainly due to the loss of consumer households. This is likely to have affected food retail sales in particular. Those who continued to buy wine mostly did so in the same quantities and with the same frequency as in the previous year - albeit at higher average prices.

German wine market (all information in mhl)
German wine market (all information in mhl)

The volume market share of German wines fell by 2% to 42%, while the sales share fell by 1% to 47% . In terms of imports, Italy had the largest share of sales with 17% (+2%), followed by Spain with 14% (unchanged) and France with 10% (also unchanged).

Monika Reule

 

 

"The number of wine consumers is decreasing."

 

Monika Reule
Managing Director, Deutsches Weininstitut (DWI)

"There are several reasons for the declining per capita consumption of wine. On the one hand, the number of traditional wine consumers is decreasing due to demographic change, while at the same time the younger generations are drinking less alcohol. This is leading to a decline in consumer reach, which is also reflected in our regular market monitoring. On the other hand, the sharp rise in the cost of living during the reporting period has led to a reluctance to buy wine." (Monika Reule)

 

*No OIV data available for Germany in 1990, figure from AAWE working paper No. 214 on the wine industry in Germany, Austria and Switzerland by Karl Storchmann 

Source: Gfk ConsumerScan, Nielsen HomeScanPanel, DWI; Drinking Wine Balance Germany (DWV/DWI); DWI, OIV, AAWE

Insights

German consumers are still drinking plenty of wine — but their preferences are changing. Felix Bodmann looks at the trends.

Reading time: 6m 15s

 

 

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