The German consumption behavior is changing. Due to higher prices, they are choosing foreign or white wine options and are adjusting their household budgets. As the younger generation focuses on consuming less alcohol, producers will need to adopt new marketing strategies.
Despite the decline in sales, the total revenue from wine in the first quarter of 2024 has slightly increased compared to the same quarter last year. However, this does not apply to German wines.
Changing market shares
Typically, the revenue share of German wines is higher than the sales share because average prices are higher. However, this gap has significantly narrowed compared to previous years. The reason for this is the higher proportion of white wine in German wines, which are often cheaper than red wine in the entry-level segment.
"The decline will intensify once again"
Prof. Dr. Simone Loose of Geisenheim University in Germany thinks that the younger generation will not be able to maintain the current volume.
"The ongoing decline in wine's reach is due to the fundamentally changed social behavior of Germans over the long term. With less socializing, there are fewer occasions to consume wine. In the short term, the decline is further exacerbated by economic constraints, which affect German wine more severely due to its higher costs compared to imported wine. As baby boomers retire, this decline will further intensify in the coming years. Young people are more distant from alcoholic beverages but crave experiences in nature. Therefore, new marketing strategies with no/low-alcohol products, wine tourism, etc., are needed. However, even these strategies will not maintain the marketed wine volume."
