Article Posté dans : Maxine Wine News par Maxine Colas le juin J 2010 19:30
China is becoming the 5th consumer market for wine. (Photo AFP)
Wine is not a primary necessity product, so when the wallets get slimmer, graph lines point downwards. This was the analysis concluded at Tbilisi, Georgia during the 33rd Congress of the International Organisation of Vine and Wine.
The IOVV brings together about fifty wine-producing countries. Headquartered in Paris, its current president is Yves Bénard from Champagne (1). It determines the norms governing the world wine trade. The bad news comes in particular from the consumption front. Although during the past decade this was growing slowly but surely, this trend is now being reversed.
Volumes of wine consumed in 2009, compared to those of the previous year, are showing a fall of close to 9 million hectolitres, which is equivalent to the consumption of a country like Argentina, ranked 8th in the world.
France remains the biggest market but for the first time French wine consumption has dropped below the 30 million hectolitre mark. The US and Italy come next, both markets in steep decline. It is interesting that China is now positioned in a promising 5th place. Beyond the statistical anomalies in this vast country, the opening-up to wine seems far-reaching and even goes beyond the great vintages. This is the good news.
Production increases
World wine production increased in 2009. This leaves little doubt about the tough challenge for 2010…with, for example, the dramatic decrease in bulk sales already causing anxiety. On the production front, China has also climbed up into 5th place, now producing an annual 12 million hectolitres, which is double Bordeaux’s output.
With global consumption falling, it is logical that world trade exchanges are following suit. This is quite a spanner in the works, at least in the short term, because exports are a real growth motor, particularly for France.
In 2009, 86 million hectolitres were exchanged between the production and consumer markets. In other words, 3.5 million hectolitres less than in 2008! This explains why the Bordeaux producers exported less wine in 2009 than they did twenty years ago!
Within the context of world export power, France has lost its footing in terms of volume. Italy is currently the leader with 18.6 million hectolitres. Even Spain, which has doubled its output, has overtaken France to claim second place. Australia, which for a long time was generally considered a role model, is also losing ground due to drought, fires, and its main market players pulling out… you name it.
Fortunately Germany is still the biggest world importer, often buying wines at low prices, ahead of the United Kingdom and theU.S.
(1) Yves Bénard is in Bordeaux today for a meeting at the BEM, Bordeaux’s Management School.
Author:Cesar.Compadre
photo So :DR
Source: http://www.terredevins.com/blogs/bordeaux-wine-news/2010/06/30/wine-world-consumption-and-business-in-sharp-decline/
