In its last newsletter, Euromonitor International published its new report called “Global Wine: Challenges and Opportunities Facing the Wine Industry”. In this article readers may find a summary of the wine's global performance in 2009 as well as the key findings of the report.The wine category has witnessed a rollercoaster of a ride over the last decade, sprinting the distance from an indulgence-orientated tipple for purist palates and a loosely branded domestic speciality to a commoditised necessity entering households internationally.
The global economic uncertainty translated into slowdown in 2009, although the category’s momentum is anything but subdued. Euromonitor International’s latest global briefing investigates wine’s global performance in 2009 and its future.
2009 sees slow down of sales
While the alcoholic drinks industry has demostrated its relatively resilience to economic volatility, the negative effects of the umprecedented recessionary pressures of 2008-2009 severely dented its steadily buoyant credentials with wine sales seeing a drop in growth as a result.
Posting total volume growth of just 0.1% in 2009, which was significantly lower than the 1% CAGR (Compound Annual Rate Growth) witnessed over 2004-2009, wine took a severe hit.
A similar trend is seen in value growth with 2009 total value growth a meagre 1.9% as consumers traded down.
Key Findings
- Wine hit by recession: The recession has impacted global wine sales negatively with growth rates falling in 2009 compared to the review period.
- Champagne biggest loser: Champagne saw the biggest drop with volumes declining in 2009 making it one of the worst-performing categories of the alcoholic drinks industry.
- Western Europe largest region: Western Europe is the dominant market for wine, accounting for almost half of both total volume and total value sales.
- Asia Pacific most dynamic: Asia Pacific’s exemplary financial resilience and undiluted buoyancy is rapidly changing the global wine arena, making it the fastest-growing region for wine globally.
- New vs. Old World wine: Old World wine leads the way in terms of actual volume, but New World wine is the most dynamic as consumers look for simplified offerings.
- Internet retailing shows fastest growth: With consumers seeking value for money and convenience, Internet retailing reaped the benefits by becoming the fastest-growing channel for wine sales globally.
- High level of fragmentation: Wine is the most fragmented alcoholic drinks category as many unbranded products are available.
- Future looks brighter: Forecast total volume growth for global wine is set to surpass growth over the 2004-2009 period as consumers slowly resume their old consumption habits.
Translation: Ana Tagua for Winesur.com
Source: http://www.winesur.com/news/business/global-wine-performance
