Others-outlook Flashcards
South Africa Outlook Exports
2023
- 17% volume
+ 0.9%value
Similarrly to Austria, it also dropped the Bulk export volume.
Emerging markets
Belgium notable increase of 32% , and Zambia, experiencing a substantial 105% most major target markets encountered declines in wine volume.
UK remained the largest export market, 2/3 are bulk.
Africa Outlook Africa Outlook
The African wine market revenue was $8.29 billion in 2022, expected to grow at a CAGR of 14.26% by 2025.
Out-of-home wine consumption is also expected to increase.
UAE Outlook Dubai Alcohol Market
In Dubai, only two companies, Maritime and Mercantile International (MMI) and African & Eastern (A&E), are permitted to import and distribute alcohol.
Following the decriminalization of alcohol in 2020, Dubai scrapped a 30% alcohol tax last year and eliminated the license fee required to buy alcohol in January.
This relaxation in regulations supports a vibrant commercial and tourism sector.
Market Growth: UAE’s Champagne market shows potential with sales nearing 2.9 million bottles annually, valued at approximately €80 million. Ranked top 10 globally by value.
India Outlook
+ 14% over the past five years, valued at $238 million in 2022.
In India, wine is increasingly featured at luxury weddings, a part of the US$75 billion wedding industry in 2023-24.
Despite high import taxes historically set at 150%, recent economic agreements have reduced these duties to 75% with future reductions planned, improving market access for foreign producers.
Italy Outlook
2022
The Italian wine market is expected to grow at a CAGR of 4.3%, due to the easy availability of grapes for wine production. Italy saw a 10.1% increase, reaching €7.8bn. 2022
2023
Italy’s Wine Exports Fell 7.3% in 2023 Lamberto Frescobaldi, president of UIV, commented on the situation: “It’s undeniable that 2023 was affected by cyclical factors, especially the reduction of stockpiles in North America. But it’s equally true that our country urgently needs to expand its customer base: These main five countries account for nearly 60% of the value of Italian exports, compared to 50% for France and 40% for Spain.”
Global Outlook
Attractiveness of Wine Markets: The US remains the most attractive market for wine.
Japan and China are now in the top 10 due to their potential for future growth.
Southern European markets are benefiting from normalizing social activities and tourism.
However, Eastern European markets are declining due to economic pressures like high energy prices.
Australia Place Exports -
Declined by 1% in value and 2% in volume in 2023
Exports to Northeast Asia increased by 29% in value.
Despite declines to North America and Southeast Asia, Australian wine exports remain relatively stable due to growth in Europe and Hong Kong.
Strong growth in Northeast Asia, particularly Hong Kong which saw a 60% increase in exports
Exports to Hong Kong mainly consisted of red wine above AU$10 per liter FOB, reflecting Hong Kong’s role as a major trading hub, with some wines on-shipped to other Asian markets.
Exports to Japan grew by 4% and to Mainland China by 21%, despite recent tariffs affecting historical data.
Asia was the largest region by value for Australian wine exports, with a 36% value share.
Thailand is lifting a tarif.
Declines were noted in Southeast Asia, with exports dropping in Singapore, Indonesia, and Malaysia
Austria Place exports
value rose by 2.7% while volumes fell due to a drop in bulk wine exports.
Netherlands s
Netherlands reported a consumption level 9% below its last five-year average.
an increase in excise taxes by 8.4% on still and sparkling wines from 2024, for products with an alcohol content of more than 8.5% abv,WHO advocates for it
Thailand Price Taxes
The recently-elected Thai government on January 2, to cut excise duty on wine from 10% to 5%. Swingeing import duties will also be removed for the next 12 months.
Australia, with 33% of the market, leads the field, followed closely by France, with 32%
France Product Champagne
Challenges in French Market: Domestic consumption has declined, now only 42.5% of total production, with significant drops in the past two years.
Lower yields Europe- Frost 24
France
Jura 40%.
90% in Cahors (Vitisphere)
Bordeaux =minimal impact (CIVB)
Hail Chablis
Sébastien Dauvissat vineyards were directly hit by the storm winds and hail. In these cases, he estimates the crop loss at 70% or more. Additionally, due to the high rainfall in the following days, bodies of water overflowed their banks, resulting in some wineries being flooded.
Rioja indicate 6.6%
Austria
damage in the wine and fruit growing sectors at a total of €56m. Styria
Germany
Moselle, particularly in the Saar and Ruwer side valleys, losses of 80-100% have been reported.
taxes
Increasing
Neatherlands an increase in excise taxes by 8.4% on still and sparkling wines from 2024, for products with an alcohol content of more than 8.5% abv,WHO advocates for it
lifting
Thailand
The recently-elected Thai government on January 2, to cut excise duty on wine from 10% to 5%. Swingeing import duties will also be removed for the next 12 months.
Australia, with 33% of the market, leads the field, followed closely by France, with 32%
China- march 2023- will need 2 years to use the overstock
Trade by Product Type:
Bottled Wine: Represents 53% of trade volumes globally in 2023 and 67% of the world total wine export value. Sparkling wine witnessed an unexpected decrease of 4% in terms of trade volume.
Sparkling Wine: Represents 11% of total exported volume and 25% of export value. Bag-in-Box® (BiB) wine represents 4% in volume and 2% in value of the total world exports.
Bulk Wine: Represents 33% of total world wine volume exports but only 7% of the total value of wine exports in 2023. The category recorded an average export price of 0.7 EUR/l.
Sweeden
Easy to buy organic drinks
Target level 2023: 15%
Outcome in 2023: 14.1%
Comment on the results for 2023 : We see that customers continue to choose organic and demand more organic options when they shop with us, which is also reflected in our sales figures with an increased proportion of organic.
Price components (average product)
Alcohol tax: 29 %
Supplier: 41 %
VAT: 20 %
Systembolaget: 10 %
