RED-WINE SALES TO GROW

Published: 23 July, 2008

Global growth of red-wine sales is likely to outstrip all other wine types in both volume and value over the next four years, according to industry analysts Euromonitor. The report forecasts that by 2007 the global market for red wine is going to be worth $82 billion, an increase of 31% from last year. Volumes are forecast to increase by 22% to 13 billion litres over the same period. The report's authors state: Performance will continue to be driven by rising consumer health-consciousness and red wine's cultured image, which is set to grow in significance as consumers become increasingly knowledgeable about wine and its compatibility with food.' The authors feel that even in mature markets, such as Germany's, red wine should still manage growth, helped by the fact that red wine complements the increasingly popular southern European cuisine'. Largely as a result of the rise of the light red-wine sector, white and ros wines are expected to experience sluggish global volume sales over the period'. More comforting for those who specialise in the white grape, however, is a forecast that increasing consumer sophistication' is expected to lead to a rise in demand for higher value products'. Second to red, in terms of future gains, was forecast to be Champagne, expected to rise in sales by 17.5% over the next four years, reaching a total of $25.044 million in 2007. Sales of wine in Asia Pacific, Eastern Europe, Africa and the Middle East are expected to lead growth in both volume and value sales. This is considered likely to offset the continued decline in most of Europe's major markets, especially France and Italy, as younger consumers' shift away from traditional patterns of regular consumption. However, no end is seen to the ongoing problem of retailer discounting', as oversupply in Australia and the US continues to have a significant effect on pricing in the short term'.

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