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The future of the still and sparkling wine industry in Italy still looks bleak

Press release July 2, 2014

The report presents detailed data on the Still and Sparkling Wine consumption trends in Italy, historic and forecast consumption volume and value at market.

The wine industry in Italy, alongwith most other alcoholic beverages was strongly affected by the economic turndown. The country’s adverse economic conditions coupled with high unemployment rates were attributed as the main reasons for the depreciation in the market. Given the unstable market conditions, the on-trade sales volumes both for Italian sparkling wine and still wine saw a decline of 5% in 2012. This trend continued through 2013 and is not expected to improve unless the economy revives.

This report: The Future of the Still and Sparkling Wine Market in Italy to 2018 provides detailed data of consumption trends in Italy, historic and forecast consumption volume and value at market and category levels, brand data as well as distribution channel data. The report highlights the current market situation, citing trends and forecasts the opportunities and prospects of the market to 2018.

Prevalent market conditions and trends

Though the wine consumption is going up worldwide, the consumption rates in Italy have been on a decline. Italy’s slow economic growth severely affected the still and sparkling wine market. Unemployment levels reached a new low at 9.2% with disposable income levels set to decline even further. This has resulted in Italians cutting down expenditure on leisure activities even on traditional products like wine, consumption of which is very common in Italian households. Although there is a popular trend of wine consumption with outdoor meals and activities, the limited income of people is forcing a number of them to dine and entertain at home rather than going out. Moreover, changes in lifestyle choices, alongside increasing health concerns and several anti-drinking campaigns have also thwarted the industry. Research data indicates that the per capita consumption of still and sparkling wines in Italy fell from a record 120 liters in 1970s to a mere 40 liters in 2013 and is expected to further decline. However the falling domestic consumption rates spurred greater exports with Italy becoming one of the leading exporters of still and sparkling wines to the rest of Europe as well as to the US.

Market opportunities

Although the Italian economy is not expected to prosper during the forecasted period the country’s economic situation is expected to stabilize in the coming years. This stability is therefore anticipated to revive the domestic sales. However, Italy continues to be one of the largest producers and exporters of wine worldwide – Italy, France and Spain together accounting for 80% of the global wine output.

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Still and Sparkling Wine Market in Italy, Italian Sparkling Wine, Sparkling wine Italy