Export Opportunity Analysis - Global Wine Market
Competitive
Landscape
In 2016, France incurred the highest surplus of US $8.3 billion in trading wine internationally while the United States had the highest deficit of -US $4.2 billion. Although the U.S. possesses a competitive disadvantage for trading internationally in the wine sector, its negative cash flow allows opportunities for other wine-supplying countries, including France, to satisfy the different tastes for various types of wines from growing consumer demand. Due to cost increase in grape prices and lower indulgence levels of new consumers, successful wineries 10 years from now will have to adapt to different consumers with different values.
In 2016, France incurred the highest surplus of US $8.3 billion in trading wine internationally while the United States had the highest deficit of -US $4.2 billion. Although the U.S. possesses a competitive disadvantage for trading internationally in the wine sector, its negative cash flow allows opportunities for other wine-supplying countries, including France, to satisfy the different tastes for various types of wines from growing consumer demand. Due to cost increase in grape prices and lower indulgence levels of new consumers, successful wineries 10 years from now will have to adapt to different consumers with different values.
Key Trends
Millennials. Those between
the ages 22 to 28 will surpass Gen Xers (age 39-50) to become the largest fine
wine drinking generation by 2026. Both Millennials and Gen Xers show increase
in wine purchase each year while this trend is declining for Boomer (age 51-68)
and Matures (age 69+).
Leading Distribution Channel. Hypermarkets
and supermarkets represent wine’s leading distribution channel with a volume
share of 41.2% in 2016. In second place, the On-Trade channel accounted for a
26% share of total volume sales. Most consumers buy wine from numerous developed
retail industry in major countries.
Restaurants. Large wineries increase sales by
selling to restaurants via wholesalers and small wineries are more successful
selling to local independent restaurants.
Young adults. Younger
customers are always searching for the best deal and are open to trying new
things. When they drink wine for the first time, the young adults are more
likely to drink foreign wine brands including French rosé, Italian Pinot Grigio, and
New Zealand Sauvignon Blanc. France, New Zealand, and Italy (15.2%, 10.7% and
2.4%, respectively) have been the largest importers of bottled wine.
Grape varieties. $11 to
$14.99 Cabernet Sauvignon and $15 to $19.99 Chardonnay predominate wine sales
with their red and white varieties along with U.S. premium wine growth. Also,
red blends sell well too, providing consumers with ease of purchase without
comparing different wine types and giving winemakers flexibility in their grape
preferences.
Sources:
https://temple-primo.hosted.exlibrisgroup.com/primo-explore/fulldisplay?docid=TN_gale_ofa501488029&context=PC&vid=TULI&search_scope=default_scope&tab=default_tab&lang=en_US
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