Industry Analysis & Industry Trends
Growth will gradually improve over the five years as the oversupply of wine alleviates and the economic outlook improves in wine-consuming markets. Although they constitute only minor proportions of the global wine market at present, China and other developing Asian countries loom as major growth markets in the long term, with rising disposable income and more sophisticated consumer palates expected to push sales of imported wines... read more
In the five years to 2014, deteriorating economic conditions across key wine-consuming countries have hampered sales. Ongoing tight financial conditions and a global oversupply of wine resulting from the recession have led consumers to shift away from premium wine toward cheaper varieties, constraining revenue growth in the industry. Although conditions have begun to improve, industry revenue has been hindered, growing marginally at an annualized rate of 0.2% to $108.1 billion. This rate includes estimated 1.0% growth in 2014, as consumer spending and wine prices continue to climb post recessionary lows.
Oversupply, tight credit conditions and slowed consumer spending also pressured profitability over the first half of the five years leading to 2014. However, since then... read more