The world＇s wine market- an evolving panorama

On the basis of the last report concerning the current economic situation by Oiv and of the reports carried out by Corriere Vinicolo –Unione Italiana Vini (Italian Wine Association) on the export trend of 2008, SIMEI claims that the expected wine market panorama for 2009 and the following years is marked by an evolution and change of balances in the world’s chessboard.

SIMEI International Enological and Bottling Equipment Exhibition, is being held from Tuesday, November 24 to Saturday, November 28, 2009 at the functional pavilions of the new exhibition fairground of Fiera Milano in Rho. It would cover everything from wine to beer, from spirits to fruit juices, from soft drinks to mineral water, last novelties in the field of machines, equipment, products and services for beverage preparation, and bottling and packaging. Also the seventh edition of Enovitis, International Vine and Olive Growing Technics Exhibition, will be held on the same days.

Wine consumption in 2008 reported a decrease of 2 million hectolitres versus 2007, mainly due to a continuous fall in the traditional European producing and consumer countries: France, Italy, Spain and Germany. As a counterbalancing factor, the US home market overcame the Italian one (27.2 million hl versus 26 million hl in Italy), a growing trend in consumption was registered also in Australia (almost 5 million hl) and in the Czech Republic (1.8 million). A substantial stability was recorded in South Africa, Chile and New Zealand.

On the front of wine production (juices and musts not included), in spite of a remarkable fall in the European production (161.6 million hl versus 163.6 million hl in 2007), and a considerable decrease for France (41.4 million in 2008 from 46 million in 2007), the world has globally maintained its almost unchanged volumes (269.4 million hl). Indeed, the South-American productions remain high. Argentina is decreasing to 14.6 million hl, but Chile balances by a growth of 8.6 million hl. An increase is reported also in South Africa (10.2 million hl, +5%), Australia (12.3 million hl, +30%) and New Zealand (2 million hl, +39%).

On the basis of an analysis of the single performances, Italy has closed the year with a minus sign on the export front, at 17.8 million hl, with a negative variation of 7%. Spain exported 16.9 million hl (only -920,000 hl compared with Italy), and scored more than +8.5% versus 2007.

US exports rose over the threshold of one billion dollar sales (+6%), with a volume of 4.9 million hl (+8%), of which 90% came from California.

France had a 10.5% fall in the volumes, at 13.7 million hl whereas Australia showed a decrease of 11% at a little less than 7 million hl.

On the basis of a Canadean report on the beverage market, the forecasts are moderately positive with regard to global consumption. According to the forecasts, the demand should overcome the recession, growing by 2% in 2009 and reaching a yearly rate of 2.6% in the long period.

More interesting categories appear to be non-carbonated drinks, fruit juices and bottled mineral water, where the increase in countries, such as China, India and Indonesia, will compensate for the stagnation of Western economies.

The companies with strong international orientation will benefit from the demand coming from Asia, which will balance the markets that are more inclined to a stability situation, such as the Northern-American and the European ones.

As far as packaging is concerned, the year 2008 for the European soft-drink can market scored a 5% rise, totaling 52 billion units. In 2007 there had even been a 10% growth. The data diffused by the trading association Beverage Can Makers Europe, highlight that Eastern Europe played a dynamic role in the demand increase.