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
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