VINEXPO/IWSR Study Reveals Growth in U.S.

Aggressive growth of wine consumption enabled the American Market to surpass France, as the 2nd largest consumer worldwide of all still light wines. Though Italy remains the No 1 in this spot, the U.S. is expected to further grow 9.35% by 2014. Says Robert Beynat, Chief Executive of Vinexpo, “Within the next 10 years, wine consumption in the United States will have increased 3 times faster than the global average.” Other results from the study conducted by leading London-based drinks research organization The International Wine and Spirit Research (IWSR), commissioned by VINEXPO, were presented at a press conference held earlier today at the Four Seasons Hotel in New York City.

Notable US Rankings for 2010

The leading consuming nation of tequila, bourbon, liqueurs and cognac
The largest retail market for still light wines in the world
The largest consumer worldwide of still light wines priced higher than US$10 per bottle
2nd largest consumer worldwide of all still light wines behind Italy and ahead of France
3rd largest importer of wine by volume (behind UK and Germany) and the 2nd largest importing nation of wine in terms of value
4th largest wine producing nation worldwide behind France, Italy and Spain
2nd largest consumer worldwide of scotch, rum, gin and vodka
KEY FINDS FOR U.S.A.

In 2012, the United States will become the leading consumer nation of still, light wines

In 2009, for the first time in their history, Americans drank more wine than the French and became the largest wine consuming nation by volume worldwide. The consumption of still, light wines increased by 9.9% in the U.S. between 2005 and 2009 reaching 281,205,000 9-litre cases, or 3.374 billion bottles. In 2010, wine consumption grew in the U.S. In the period from 2010 to 2014, a further 9.35% increase in consumption is expected.

2012 is the year when the Vinexpo study forecasts that the Americans will overtake the Italians to become the largest consumers of still, light wines in the world. They are already the 4th largest consumers worldwide of sparkling wines.

Imported is as attractive as American

Between 2005 and 2009, growth in the consumption of imported wines and domestically produced wines was practically the same, 10.7% and 9.4% by volume respectively.

The Vinexpo study forecasts that this trend will continue between 2010 and 2014.

In 2010, imported wines accounted for 27.8% of all volumes of wine consumed in the U.S.

The top 3 wine suppliers: Italy, Australia and France

Italy is the leading supplier of wine to the U.S. Between 2005 and 2009, the volumes of wine imported into the American market from Italy, Australia and France increased by 8.3%, 1.5% and 1.3% respectively.

Although the volumes involved are smaller, the fastest growing wine imports into the U.S. are from Argentina, whose volumes more than doubled between 2005 and 2009 (up 114 %).

More spirits too

In 2009, American consumption of spirits reached 182.56 million 9-litre cases, up 10% compared to 2005. The Vinexpo study forecasts further growth of 6.3% between 2010 and 2014. This growth is mainly in the imported spirits, especially vodka, whose consumption has grown steadily since 2005 (5% per year).

KEY FINDS FOR GLOBAL MARKET

WINE CONSUMPTION WORLDWIDE CONTINUES TO GROW

In 2009, more than 31.5 billion bottles of wine were consumed worldwide

The total world consumption of grape-based wine, both still and sparkling, reached 2.626 billion cases in 2009, the equivalent of 31.51 billion bottles, up 4.5% compared to 2005.

This growth had slowed down significantly over the three previous years: after no change between the 2008 and 2009 figures, the VINEXPO / The IWSR study forecasts a slight increase of 0.05% at the end of 2009, which was confirmed in 2010 (up 0.07%).

World wine consumption will continue to grow towards 2014

Between 2009 and 2014, the VINEXPO / The IWSR study forecasts a moderate increase in world wine consumption of 3.18 %, reaching 2.729 billion cases. Thus in 10 years, world wine consumption will have grown by 8.6% or 216 million cases.

STILL LIGHT WINES TAKE THE LION’S SHARE

In 2009, still light wines accounted for 92.6% of all wine consumed across the world.

Worldwide growth in consumption is driven by three countries: the U.S., China and Russia

Between 2010 and 2014, the consumption of still light wine will rise by 72.90 million 9-litre cases, an increase of 2.98%. Nearly three quarters of this growth, 73.38%, will come from three markets: the U.S., up 26.94 million cases, China, up 20.76 million cases, and Russia, where 5.53 million more cases are expected to be consumed.

The U.S. will become the world’s leading wine market in 2012

This forecast, published in the VINEXPO / The IWSR 2005 study, is turning out to be correct. In 2012, the U.S. will become the world’s leading market for the consumption of still light wines, ahead of Italy and France.

Between 2010 and 2014, still light wine consumption is expected to increase by 9.35% in the U.S., while it will decrease by 0.82% in the same period in Italy, which was the leading consumer in 2010. In France meanwhile, consumption is forecast to fall by 4.06%, but the country will maintain its position of third largest consumer.

Consumption of rosé wines will increase the most in the next five years

Although the overall share of rosé wine consumption only represents 9.9%, its growth will be the strongest between 2009 and 2014 and is expected to reach 7.76%. In the same period, red wine consumption will grow by 3.85% while that of white wine is expected to increase by 2.44%.

SPARKLING WINES CONTINUE ... TO SPARKLE!

Sparkling wine consumption has always increased faster than that of still wines. In 2010, sparkling wines accounted for 7.4% of all wines drunk worldwide and their consumption is expected to grow by 5.61% (compared to the 2.98% growth rate of still wines) between now and 2014, reaching 207 million 9-litre cases.

HIGH LEVEL OF INTERNATIONAL TRADE

One bottle in four consumed anywhere in the world is imported

In 2009, 25.55% of all volumes of still light wines consumed worldwide were imported, an increase of 9.31% compared to 2005. By 2014, the consumption of imported wines is expected to amount to 667 million cases, up 5.54% compared to 2010. This will be equivalent to 26.44% of total world consumption.

In the ten-year period from 2005 to 2014, the consumption of still light wines that have crossed national borders will thus increase by 17.22% compared to 8% growth in consumption in the same period of all still light wines, irrespective of their origin or destination.

WORLD SPIRITS MARKET

Total world consumption of spirits reached 2.7 billion cases in 2009

After increasing by 7.61% between 2005 and 2009, world spirits consumption reached 2.704 billion 9-litre cases at the end of the 5-year period. Following a clear drop in consumption worldwide in 2010 of 2.11%, the VINEXPO / The IWSR study forecasts a return to growth of 2.23% between 2010 and 2014.

Asia is the leading regional consumer of spirits

Asia, the continent that consumes the most spirits, accounted for 44.6% of total world consumption in 2009, a 5.48% increase compared to 2003. After substantial growth between 2005 and 2009 of 20.22%, spirits consumption marginally decreased by 0.8% in Asia in 2010. The VINEXPO / The IWSR study expects consumption to return to growth of 4.76% between 2010 and 2014.

Vodka holds on to its international leadership

With 487.97 million 9-litre cases consumed in 2010, vodka is clearly the leading spirit to be consumed throughout the world.

Spirits sales turnover is increasing fast

Total spirits sales turnover reached US$ 205.935 billion in 2009, up 30.59% compared to 2005.

The worldwide trend in favor of premium brands is expected to continue between 2010 and 2014, when retail sales are expected to grow by 9.5%.

For the 9th year running, VINEXPO, the international wine and spirits exhibition has commissioned a detailed study on world wine and spirits consumption, production and international trade with a 5-year forecast (i.e. to 2014) from the specialist consulting firm The IWSR (The International Wine and Spirit Research). It has since become a reference for industry professionals. Every year, the very low margin of error observed when comparing previous forecasts against actual consumption figures, underlines the true value of this unique piece of work presented by VINEXPO.

This year’s study covers 28 producer countries and 114 markets where wine and spirits are consumed. Founded in 1971, the database of The IWSR has the widest scope and is the most accurate and most detailed source of information within the world market of alcoholic beverages.

Vinexpo will be held in Bordeaux, France from Sunday, June 19th to Thursday, June 23rd,2011

The Exhibition is strictly reserved for members of the trade and press.
For more information: www.vinexpo.com

Contacts

France
Vinexpo
Anne Cusson – Press Department Director
Juliette Demptos – Press Attaché
Tel : +33 (0) 5 56 56 01 69
presse@vinexpo.com
or
USA
Vinexpo c/o Sopexa USA
Marie Christina Batich
Media Relations Manager
Tel : 00 1 212 386 7416
marie-christina.batich@sopexa.com