Industry Analysis & Industry Trends
Global oversupply of wine has defined the Global Wine Manufacturing industry over the past five years. As a result of increased global competition, the market shares of traditional European wine producers such as Italy, France and Spain have declined, while newer manufacturers in Australia, New Zealand, Chile and the United States have experienced rising demand. Overall, industry revenue is expected to decline over the five years to 2015, and manufacturers have increasingly consolidated their operations over the period. Although rising wine consumption in emerging markets is expected to lead to stronger international trade in the industry over the next five years, revenue is expected to continue its decline, albeit at a slower pace... read more
In the five years to 2015, the global oversupply of wine resulting from emerging New World wine producers has led to some systemic production declines among traditional winemaking regions of the world. Although global consumer spending is growing and the industry continues to serve an expanding base of customers, industry revenue has declined at an annualized rate of 3.1% to $85.2 billion over the past five years. This rate includes a modest 0.1% increase in revenue in 2015, as production declines persist among European countries.
Oversupply, tight credit conditions and continued competition with other alcoholic beverage industries also pressured profitability over the first half of the five years leading to 2015... read more