What does a wine importer do?
A wine importer plays a crucial role in the global wine industry by acting as the intermediary between wine producers (wineries) and the market (retailers, restaurants and consumers).
Wine importers negotiate contracts, manage pricing, terms, delivery, and sometimes secure exclusive distribution rights. They need to comply with regulations like licenses, labeling, safety standards and taxes. Finally, they coordinate logistics and distribution to deliver the wines to consumers, maintaining appropriate storage and transport conditions.
Trends wine importers should know
There has been a focus on sustainability, with wine importers prioritizing sustainable and organic wines as consumers become more environmentally conscious. This trend is driving the selection of wines with lower environmental impact and eco-friendly packaging.
In addition, e-commerce has expanded, with a rise of online wine sales transforming the import landscape. Importers are leveraging digital platforms to reach a wider audience, offering direct-to-consumer sales and enhancing their marketing efforts through social media and online advertising.
Finally, major markets showed resilience despite the overall decline in global consumption. France for example, produced 48 million hectolitres, an increase of 4.4% from 2022.
The top three major wine importing countries performed as follows:
Germany
Volume: 13.6 million hectoliters (mhl), a slight decrease of 0.3% from 2022.
Value: 2.6 billion EUR, a decline of 4.6% compared to 2022.
Bottled wine imports represent 62% of the total value. Sparkling wine saw a minor increase in value by 2%, despite a 4% decline in volume. Bulk wine imports increased by 5%.
United Kingdom
Volume: 12.3 mhl, a decrease of 5.1% from 2022.
Value: 4.7 billion EUR, a decline of 3.3% from 2022.
Bulk wine saw the largest decrease in value (-14%). Sparkling wine value increased by 2%, although its volume decreased by 3%.
United States
Volume: 12.3 mhl, a decrease of 14.6% from 2022.
Value: 6.2 billion EUR, a decrease of 11.5% from 2022.
Despite the decline, the USA remains the largest import market by value globally. Wine production in 2023 was estimated at 24.3 mhl, 8.5% higher than in 2022 and in line with the five-year average. Cool temperatures and heavy winter rains in regions like Napa and Sonoma contributed to this relatively large production.
The significant global decline in wine production was largely due to adverse climatic events such as early frost, heavy rainfall, drought, and widespread fungal diseases, which severely impacted harvest volumes across major wine-producing regions in both hemispheres.
Defining category trends for wine importers
There is an increasing demand for alternative packaging formats like Bag-in-Box (BiB) wines and ready-to-drink (RTD) products. These formats offer convenience and affordability, appealing to a broader consumer base. Here are some of the notable trends affecting wine imports by categories from the "State of the World Vine and Wine Sector in 2023" report:
Bottled Wine (< 2 liters):
- Represented 53% of global trade volumes in 2023.
- Accounts for 67% of the world's total wine export value.
- Experienced a 9% decrease in volume and a 6% decrease in value compared to 2022.
- The average export price increased to 4.7 EUR/l, a 3% rise from 2022.
Sparkling Wine:
- Constitutes 11% of total exported volume and 25% of export value.
- Saw a 4% decrease in trade volume but a 1% increase in value compared to 2022.
- The average export price rose to 8.2 EUR/l, a 4% increase over the previous year.
Bag-in-Box® (BiB) Wines:
- This includes wines in containers holding more than 2 liters but less than 10 litres.
- Represents 4% of the total world exports by volume and 2% by value in 2023.
- Experienced a 4% decline in volume, but maintained value due to a higher average export price of 1.9 EUR/l, marking a 4% increase over 2022.
Bulk Wine (> 10 liters):
- The second-largest category in volume, accounting for 33% of global wine export volumes.
- Comprised only 7% of the total value of wine exports in 2023.
- Experienced a 4% decrease in volume and a 10% decline in export value compared to 2022.
- The average export price was 0.7 EUR/l, reflecting a 7% decrease from 2022
Moving into 2024 and beyond, wine importers continue to work hand-in-hand with Hillebrand Gori adapting to global trends in order to bring the consumer the highest quality product selections.
Import and consumption
Trends in consumption mirror the changes in import patterns. For instance, the overall decrease in global wine consumption aligns with the drop in the volume of wine exported internationally, although this was partly offset by a high export value driven by increased prices. The drop in volume of wine exported can be attributed to a number of factors including climatic issues as previously mentioned, inflation and reduced purchasing power and increased production and distribution costs.
Reviewed by Hillebrand Gori
