Emerging Economies and Premiumization Provide Brighter Business Climate for Global Wine Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the Wine markets. The global wine market is projected to reach 27.5 billion liters by 2017. Growth in the market is primarily driven by factors such as rising affluence, growing shift towards premium alcoholic beverages, increasing consumption of wine, and adoption of western lifestyles in developing markets. Market growth is also expected to be fuelled by rising awareness of health benefits associated with wine consumption.

Wine: A Global Strategic Business Report

Follow us on LinkedIn – The future of wine industry portrays a bright picture as wine is set to make gains in both developed and emerging markets at the cost of other alcoholic beverages including beer and spirits. Also, the associated health benefit findings, that red wine prevents heart disease, is spurring consumption of wine at home and horeca outlets. New world wines are a major force to reckon within the global wine industry and are providing stiff competition to wines from older world regions such as France, Spain and Italy. Growing acreage of vineyards in the new world, including China is considerably changing the wine landscape on a global scale. The traditionally large European market is running into rough weather with Australia, Chile, and emerging economies of Asia rising over the horizon as new turbo chargers for global growth, both in terms of production, and consumption. China, particularly is gearing up to scoop a significant slice of the global pie. New and improved technology is enabling producers from new regions such as Australia, and New Zealand to manufacture wines with consistent good quality.

The economic crisis and the subsequent decline in consumption, which added to the already existing problem of overproduction, adversely affected the global wine manufacturing industry during the years 2008 and 2009. The decline in wine consumption was primarily attributed to a drastic reduction in the US and other developed markets such as Europe. Within Europe, the maximum decline in consumption was witnessed in France. Post the slump of 2009, the economy headed towards a gradual recovery since the first quarter of 2010 with improved export trends reported for the period by global suppliers. Despite poor harvests in some of the major supplying nations, the average per bottle price managed to show improvement. Production of wine worldwide remained largely stable in 2011, with production levels registering a tad higher than production levels in 2010. However, total area under vine worldwide has been decreasing over the recent years. Several countries worldwide have witnessed a decrease in vine area, which include countries such as Spain and Italy. The European region as a whole lost over 50,000 hectares of vine acreage in the year 2011 alone. However, Europe is not the only region to witness a decline in vineyard area. Countries in Oceania – Australian and New Zealand, and in Latin America such as Argentina have also been witnessing shrinking vineyard acreage.

Europe represents the largest regional market worldwide, as stated by the new market research report on Wine. However, growth in the global wine market would be driven by Asia-Pacific, which is projected to grow at a compounded annual rate of 3.8% during the analysis period. Segment wise, Still Wine represents the largest product segment. Global champagne sales have been rising post recession, with large portion of this growth emerging from non-European markets. Australian wines are making waves in the US markets, strengthened by introduction of new varietals and greater marketing emphasis on innovation by the producers. In Japan, Red Wine represents the most preferred form of wine, accounting for over half of total annual wine consumption in the country.

There exists a high demand for organic wines in Austria, Italy Germany and Spain in Europe. Defying the typical trend of consumers trading down to cheaper alternatives during scarce finances, organic wines remained unfazed and even exhibited relatively stronger growth rates during the recessionary years. Changing consumer demands and consumption patterns are increasingly challenging the global wine industry. Along with premium wine, New World wine is making its presence felt worldwide. Stronger fruit flavor and easy accessibility is driving demand for New World wines. Increased availability of wine in supermarkets is also spiking household wine consumption and demand shifts. In such a scenario, wine producers need to reposition themselves to tackle fluctuating market demands.

Consolidation is the key to the present and future of the global wine industry. Many players in the industry are on the look out for growth through mergers, acquisitions and joint ventures. The fragmented nature of the global wine industry fuels this strategy. Major factors propelling companies to opt for mergers include an easy access to international markets and ensured space in the crowded supermarket shelves. Consolidation in the US wine industry is gathering pace against the backdrop of heightened competition, fragmentation in the industry with substantially high number of players and tough operating conditions. Consequently, the year 2010-2011 witnessed increased M&A activity in the industry when compared to preceding years. Major players profiled in the report include Bacardi Limited, Brown-Forman Corporation, Castel Group, Constellation Brands, Inc., E.&J. Gallo Winery, Kendall-Jackson Wine Estates Ltd., Remy Cointreau Group, Pernod Ricard Groupe, Foster's Group Limited, and Vina Concha y Toro, among others.

The research report titled “Wine: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive market overview, trends & issues, impact of recession on the industry, global wine production scenario, recent industry activity and profiles of market players worldwide. Analysis is provided for the years 2009 through 2017, for major geographic markets, including the US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Product segments analyzed include Still Wine (Still Red, Still White, and Still Rose), Sparkling Wine, Fortified Wine and Vermouth.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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