In W33 in the wine landscape, the global wine trade experienced a 7.1% year-on-year (YoY) growth in value up to Mar-23, reaching a historic high of USD 41.7 billion. Despite this, wine export volume declined by 4.3% year-on-year (YoY), totaling 10.43 billion liters, while the average price per liter surged by 11.9% YoY, setting a new record at USD 3.94. According to the Spanish Wine Market Observatory, France and Italy displayed greater value growth than Spain in the YoY comparison; however, Spain's growth in Q1-23 exceeded both threefold.
In Bordeaux, France, wine producers plan to remove thousands of hectares (ha) of vineyards due to decreased demand and challenges posed by climate change. The consumption of red wine, which Bordeaux is renowned for, has been declining for decades. Furthermore, China, a significant export market before the pandemic, has also reduced its demand. To combat low demand, winemakers are lowering prices to USD 2.17 per bottle. In the second half of 2022, prices for Bordeaux's red wines dropped by 21% compared to the five-year average.
Russia and Ukraine remain within Portugal's top 20 wine export consumers despite the special circumstances involving Russia, Ukraine, and the European embargo on Russia. In the first half of 2023, Portuguese wine exports to Russia surged 183.4% YoY to USD 6.58 million, while exports to Ukraine increased 138.67% YoY to USD 2.06 million. Notable exports to the United Kingdom (UK) increased by 43.85% YoY and Angola by 22.53% YoY. During the same period, the overall export volume of Portuguese wine totaled 158.3 million liters worth USD 484.42 million, representing a 2.22% YoY rise in volume and a 3.91% YoY increase in value. Additionally, the average price per liter grew by 1.65%.
In Jun-23, the Chilean Wine Association (Vinos de Chile) reported a 33% YoY decline in Chilean bottled wine export volume, amounting to 3.8 million cases. The export value also saw a 32% YoY decrease, totaling USD 115 million. This decline is in contrast to Jun-22, when the export volume of bottled wine was 5.7 million cases, exceeding pre-pandemic levels. Challenges within the international market situation and the accumulation of wine inventories contributed to the export decline. Notably, export volume and value to China declined by 25% and 24%, respectively.
Lazio, Italy, boasts a vineyard area of nearly 28 thousand ha, yielding over 200 million liters of wine. The Lazio Region has committed significant investment towards promoting locally produced wines, aiming to preserve cultural traditions and expand viticulture knowledge to newer generations. Currently, a tender by the Lazio Region is active, focused on promoting Lazio wine production, especially in non-European Union markets. The allocated budget for this initiative spans USD 1.62 million for the years 2023/24, with a deadline for submissions set for September 18, 2023.
