The Global Wine Market and the COVID-19 Pandemic

The Global Wine Market and the COVID-19 Pandemic

The Global Wine Market and the COVID-19 Pandemic 2560 1920 Transitex

The wine market has undergone major changes over the past thirty years due to globalization, marketing, modernization of production techniques and a more informed and enlightened consumer.

The market remains dominated by large groups, but currently small producers compete with them at almost the same level of notoriety and visibility, mainly with premium products, building interesting niches.

The sector has grown in this period in a sustained manner, about 5% per year, and is worth around 385 billion dollars globally. As for international trade, wine exports have grown by about 2% per year in the last decade, now worth around 130 billion dollars, with 90% of the volume handled by only 15 countries.

But has we reached 2020, Covid-19 changed the whole picture. Crisis is the watchword, but also is opportunity.

The market was almost equally divided between the Horeca channel (54%) and retaillers (45%), however, this proportion will change during the course of this year due to the quarantines imposed by several countries: when we don’t consume in bars and restaurants, we consume at home. Thus, exports are expected to decrease in the short term, but will remain an opportunity for those who anticipate consumption trends and market adjustment in the medium term.

In the premium market there will be no major changes, the informed consumer, and willing to pay, will continue to do so from home, just have the means to do so, such as online shopping platforms. In generalist brands, of medium and low range, at least in the short and medium term, the producer’s preferential focus will cease to be the Horeca distributor to become the retail distributor.

Importing countries do not have enough production to cope with the increase in retail consumption, so they will continue to buy from the usual exporters, however, they may increase their domestic consumption, leaving less product available for export. This scenario will force producers and traders to adopt new strategies and approaches: more synergies, associations or cooperatives, in order to create a scale that is able to adapt to this new reality.

At Transitex, we have all the solutions and know-how to continue to make our contribution to this market. We are present in seven countries in the TOP 10 of the largest exporters, with experienced and knowledgeable teams in the food and beverage markets: Portugal, Spain, Italy, Argentina, Chile, USA and South Africa. We bring producers, traders and consumers together so that people continue to enjoy their favourite wines.

We Make the World Closer!

André Pitéu, Transitex Bilbao Branch Manager

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