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Falling wine consumption, poor profitability and a complicated image are currently the biggest challenges facing the wine industry, according to the latest ProWein Business Report entitled "Ways out of the crisis". For the report, Prof Simone Loose from Hochschule Geisenheim University surveyed 2,000 members of the wine industry from around the world about their predictions for 2024.
73 per cent of the producers surveyed stated that the supply of wine would exceed demand. The decline in demand would be exacerbated by changes in consumer behaviour and the new health trends towards less or no alcohol. 63 per cent of respondents want the resulting global wine surplus to be structurally adjusted in order to make the business more profitable again. "We need to produce less," concludes Prof Loose.
The trend towards more expensive wines is likely to reverse in some regions and lead to growth in the more affordable segment, with a simultaneous decline in the mid-range and premium class. Retailers in North America and Scandinavia, for example, are expecting a decline of around 42 per cent in the premium segment. However, the growth in the lower price category does not indicate a global increase in wine consumption.
According to the survey, another problem for the wine industry is the image of wine. It is seen as complicated and is therefore less attractive to young consumers than beer or spirits. They therefore often switch from wine to other alcoholic beverages. Their producers also had larger communication budgets to reach consumers. 62 per cent of producers and 57 per cent of retailers suggested that wine needs to become easier to understand in order to reach new consumers. Prof Loose emphasised at the presentation of the figures: "Don't get lost in too many details and don't copy the AOC system, it has no future."
Overall, however, the mood among those surveyed was slightly better than a year ago. The industry expects a slightly improved economic environment and sees a "silver lining on the horizon".
(al / Source: ProWein)