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Global Viticulture & Wine Industry

The global viticulture industry (part of the agricultural products market) involves the growing of grapes for winemaking. Research from Global Industry Analysts forecasts that world wine consumption will exceed 26 billion liters by 2015.

Demand is driven by the influence of western lifestyles, rising disposable income, increased consumption of premium alcoholic beverages, and a consumer base with increasingly sophisticated tastes. The wine market encompasses different types of wine including still, sparkling and fortified wine.

Wine and Viticulture Trends

Over the coming years, the global viticulture industry will continue recording strong growth, encroaching on the beer and spirit markets due to growing awareness around the health benefits of wine. Researchers have found that moderate wine consumption can help prevent conditions such as muscular degeneration and chronic illnesses like cancer, heart disease and Alzheimer’s disease.

Consumers are increasingly health-conscious and bombarded with information about illness and lifestyle choices that can optimize their health. Findings touting the benefits of wine are leading to increased wine consumption in eating establishments, outlets and at home. Developing nations such as India, China and Russia are being influenced by Western lifestyle habits, following trends of increasing wine consumption. The customer base of wine drinkers is also expanding, with a trend seeing younger consumers opting for wine in the place of other alcoholic drinks.

Viticulture & Wine Industry Competitors

Leading companies operating in the global viticulture industry include Foster's, Bacardi, Castel, Kendall-Jackson Wine Estates, Remy Cointreau, Pernod Ricard, Maison Burtin, Lanson, Brown-Forman, Constellation Brands, Vina Concha y Toro, Gallo Winery, Robert Mondavi Winery and Constellation Wines Australia.

Wine & Viticulture Regional Market Share

The G8 nations wine market, covering the US, Canada, the UK, France, Germany, Italy, Japan and Russia, is expected to reach almost $195 billion in 2013, representing close to 3% growth in five years, reports MarketLine. Italy dominates the global wine industry, with close to a quarter of the overall market.

The US has witnessed strong growth in its wine industry over recent years. In terms of production, the US represents close to 8% of the global industry, reports RNCOS. US wine production has outpaced France, making it the largest wine consuming region in the world. States showing particularly strong growth include New York, California, Washington and Oregon. California was the leading wine producing state in the US, accounting for 90% volume in 2010. California has more wineries than any other US state. Off-trade represents a particularly important distribution channel, with specialist retailers and supermarkets holding a majority share.

Supplier Relations US estimated the US wine industry to be worth almost $16 billion in 2010. The US imported from close to 80 countries, with imports reaching $5 billion. The US also exported to almost 130 countries, with exports exceeding $1 billion in 2010. Domestic demand reached almost $20 billion in the same year.

India’s wine industry is relatively underdeveloped with quite low per-capita wine consumption, according to research from RNCOS. A trend toward Western lifestyle habits is likely to see more of the country’s 1.2 billion population join the wine drinking consumer base, with an estimated yearly growth rate of 25% in wine consumption volume predicted for 2011 to 2014. Market growth will be driven by an increasing base of women wine drinkers, wine tourism, rising levels of disposable income, and wine clubs and festivals. Domestic wine dominates the market due to import tariffs and custom duties driving up the price of imported wine.

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Parent industry: Agricultural Products
Related industries: Cereal Production, Forestry Plantation, Horticulture, Livestock, Market Gardening

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