WINE BALANCE 2023

02/02/2024

You've probably already assessed your 2023 performance, but you're surely curious to know if your results align with the sector's overall figures.

Spoiler Alert, 2023 was (in general) a "stormy" year for the wine industry, and not because of its. rains.

If you felt this way too, don't worry, you were not the only one and there are solutions. As they say: "new year, new harvest" 🍇

In this article I share with you the most relevant data for the sector, compiled from official sources (national and international) that represent the scenario experienced in 2023.

At a general level, there were significant declines in value and volume production, prompting the need to reflect on how we are approaching the wine industry.

A study with the first estimates of world wine production in 2023 by the OIV (International Organization of Vine and Wine) confirmed that production was decreased by -7% compared to 2022 and the lowest since 1961.

The two main causes of this negative scenario are:

The extreme weather conditions such as droughts, early frosts and torrential rains, which have affected the world's vineyards.

The significant decreases in volume from some of the world's leading wine-producing countries, such as Australia, Argentina, Chile and South Africa, which have experienced year-on-year variations of between -10% and -30%.

Other data collected by the Spanish Wine Market Observatory (OEMV) in the comparative period from January to June 2022-2023, tell us the following:

World wine trade fell by -4.7% in volume, however, it grew by 3.6% in value.
Packaged wine is the most exported, with 53% of the volume and 67% of the total value.
All wines increased in price, with sparkling wine showing the highest growth, although less than in previous periods.

As a curious fact, New Zealand is the only country in the world that ended the year with an increase in sales.

Regarding our beloved Spanish-speaking markets with which we work, these are some of the most relevant data.

Figures published by Intelvid Chile - Year-on-year comparison from January to June 2022/2023.

The volume of Chilean bottled wine exports (9 L. case) decreased by -25.82%.
In value (US$) it also suffered a fall of -24.21%, and the average price (US$/box 9 L.) increased by 2.16%.
China, which continues to be the main destination in terms of value, accumulated falls of -40% in volume and -37% in value.
Of note was the increase in prices in Japan (3.2%), South Korea (4.7%) and Mexico, which experienced a rise of 7.2% compared to the same period of the previous year.

According to data collected by the Spanish Wine Market Observatory (OEMV) in the first ten months of 2023, Spanish wine exports also recorded a decline in value and volume:

-3% decrease in value (-77.1 million), and -3.6% decrease in volume (-62.8 million).
The United Kingdom remains the main destination for Spanish bottled wines, importing -10% less in volume of litres but with a 17% increase in value.

Figures published by the National Institute of Viticulture of Argentina, collected from the year-on-year comparison from January to November 2022/2023.

In terms of volume, 180.5 million litres of wine were exported, -27.0% less than in the same period of 2022.
Of that total, 77.4% were bottled wines, and of this percentage, a solemn 98.3% corresponded to bottled wines.
In terms of value, total wine sales fell by -17.6%.
The average price of bottled wine increased by 9.1% compared to 2022.

If we talk about Europe in general, these are the most relevant data, also compiled and disseminated by the OEMV, in the comparison of January to June 2022-2023

Italy overtakes Spain as the world's leading exporter in terms of wine volume.
Spain is gaining ground on France and Italy in terms of sparkling wine volume.
In terms of value, France remains the leader, increasing its turnover in the year to June 2022-2023 by 6.2% to € 12,483.1 billion
It is followed by Italy, with € 7,856.4 billion (+3.4%) and Spain, with €3,034.1 billion (+0.9%).

This scenario and the decline in global wine exports lead me to wonder:

Are we treating wine as a simple export product, just another commodity on the international market?

Perhaps it is necessary to consider another strategy that helps to understand the changing needs of the markets, and not just rely on business exercises with two-digit percentages.

❋ Consider the specific particularities, preferences and demands of each market.

❋ Cultivate strong relationships with business partners.

❋ And a closer connection with consumers.

These are considerations that could prove more profitable and fruitful in the long run than simply seeking quick quantitative increases.

In a world where authenticity and narrative are increasingly important, reclaiming the essence and appreciation of wine as a cultural and artistic expression that transcends borders could revitalize the industry and also consumer interest, marking a new chapter in the history of wine.

Many wineries are already aware of this and are investing in innovation, sustainability, and new approaches, resulting into better wines. Some of them we are proud to work with.

If you also want to be part of the change and accomplish goals in 2024, we can help you!