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
Starting a New Business
The major barriers to entry are the costs associated with land, labor and capital equipment. Setting up production on a small scale is possible, although generally not as profitable as vineyards that encompass vast stretches of land. The majority of the industry's sales come from branded wines that are produced on a large scale and sold through major retail and wholesale chains.
In many non-European countries, mainly Australia and the United States, new entry is hampered by large companies that dominate downstream distribution channels and hold significant portions of supermarket retail space. Brand recognition is a significant determinant of wine demand, and new entrants often struggle to with multinational wine makers... read more