Photo: Ewen Bell / Wine Australia

Global Wine Consumption Trends

Market Bulletin | Issue 143
Photo: Ewen Bell / Wine Australia
12 Feb 2019
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The latest international figures show that wine consumption grew at 0.5 per cent each year for the past three years, which translates to an extra 250 million glasses of wine being enjoyed each year. Interestingly, the growth is in fine and imported wine consumption. While slow, this is stronger growth than the average growth rate for the decade from 2007, when global consumption grew at 0.2 per cent a year, translating to consumption of 2.3 to 2.4 billion cases of wine.

As can be seen in Figure 1, the decade from 1997 to 2007 saw higher growth of 1 per cent per annum. A number of factors contributed to the slowdown in still wine consumption over the decade to 2017, such as volatile economic conditions across the world (e.g. the global financial crisis) and consumption declining or stagnating in wine-producing markets such as France, Italy, Germany, Spain and Argentina as well as mature markets such as the United Kingdom (UK). Recent research also suggests the younger generation are drinking less wine than their parents and grandparents in many markets.

Figure 1: Global still wine consumption (billion 9L cases)

Source: International Wine and Spirit Record

Premium and above wines in growth

Globally, the consumption of commercial/value still wines (less than US$10 per bottle) declined, down 0.2 per cent per annum over the last decade, while consumption of premium and above wines (US$10 per bottle and above) grew by 3.6 per cent per annum. The commercial/value still wine share of consumption has fallen from 91 per cent to 88 per cent over the decade.

When examining the origins of wines consumed, there is a marked difference between domestic and imported wine consumption. Since 1990, the consumption of domestic wine (i.e. wine produced and consumed in its country of origin) has declined while the consumption of imported wines has increased (see Figure 2).

Internationally, domestic wine consumption declined by 0.3 per cent between 2007 and 2017 and by a slightly lower rate of 0.2 per cent per annum between 1997 and 2007. In contrast, imported wine consumption increased by 4.9 per cent per annum between 1997 and 2007, then by 1.3 per cent per annum between 2007 and 2017.

Figure 2: Domestic vs imported still wine consumption (billion 9L cases)

Source: International Wine and Spirit Record

By price point, commercial/value wines have a much greater share of domestic still wine consumption (91 per cent) compared to imported wines (81 per cent). Further, over the last decade, consumption of commercial/value domestic wines declined by 0.6 per cent per annum while consumption of premium and above wines grew by 2.3 per cent per annum. In comparison, commercial/value imported wine consumption grew by 0.6 per cent per annum and premium and above imported wines grew by 5 per cent per annum. Over the past decade, two-thirds of the growth in premium and above still wine consumption was imported wine.

Figure 3: Price segment share of global still wine consumption, 2017

Source: International Wine and Spirit Record

Domestic wine consumption showing signs of recovery

Domestic wine consumption has shown some signs of recovery in the past three years, growing by 0.1 per cent per annum over the period. One of the major drivers has been a resurgence in domestic wine consumption in Italy. After declining from 380 million cases in 1990 to 244 million cases in 2014, Italians have increased their consumption of their own wines to 265 million cases. Other markets where domestic wine consumption has increased significantly (by more than 4 million cases) over the past three years include the United States of America (USA), Romania, South Africa and Portugal.

The two biggest imported still wine markets are Germany and the UK and consumption of imported wine has fallen in both over the last decade; in Germany by 12 million cases and in the UK by 21 million cases, mainly in the commercial/value wines. The declines were more than offset by increased consumption in China (57 million cases) and range of other countries, including Japan (by 9 million cases), Canada (8 million cases), Australia (5 million cases), Brazil (5 million cases), USA (4 million cases) and Poland (4 million cases). Interestingly, imported wine consumption in France increased by 27 million cases over the period, partially offsetting a 72 million case decline in domestic wine consumption over the decade.


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