Fewer Germans are Buying Wine

With the declining quantity of customers, wine sales in the German market are also decreasing. However, revenue has slightly increased so far in 2024, partly due to inflation.

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Except for the COVID-19 anomaly in 2021, the proportion of wine buyers in the German population has been steadily decreasing in recent years. (Sources: NielsenIQ HomeScan Panel, German Wine Institute)
Except for the COVID-19 anomaly in 2021, the proportion of wine buyers in the German population has been steadily decreasing in recent years. (Sources: NielsenIQ HomeScan Panel, German Wine Institute)

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.

Sources: NielsenIQ HomeScan Panel, German Wine Institute
Sources: NielsenIQ HomeScan Panel, German Wine Institute

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.

Sources: NielsenIQ HomeScan Panel, German Wine Institute
Sources: NielsenIQ HomeScan Panel, German Wine Institute

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.

Prof. Dr. Simone Loose, Geisenheim University
Prof. Dr. Simone Loose, Geisenheim University
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