Italian wine 2023, volumes & export so far
The UIV - Ismea Observatory has reported a nuanced performance in the Italian wine sector during the first nine months of 2023. We observe a deceleration in wine exports but a modest resurgence in sales volumes. Notably, there is an uptick in purchases of budget-friendly wine products. The Italian wine industry finds itself at a crossroads three-quarters into 2023. On one hand, we note a slight improvement in sales within the retail sector during the summer quarter, which has mitigated the overall volume decline to 3.4% in the first nine months of the year (an improvement from the 3.9% loss in the previous semester). Thanks to an increase in price points, the total sales value has seen a commendable uptick of 3.4%, reaching a value of 2.1 billion euros. However, this doesn't hold true for all categories. While still wines have experienced a 3.9% decrease in volumes (offset by a 2.6% increase in values), sparkling wines are on an upswing with a 0.6% increase in quantities and a remarkable 6.2% increase in values, resulting in a total value of 455 million euros.
Conversely, in the first seven months of the year, export figures reveal a downward trajectory, both in volumes (down 1.5%) and in values (down 1.2%, equating to 4.45 billion euros), according to Istat data. This represents a deterioration compared to the previous semester, which witnessed a decrease of -1.4% in volumes and -0.4% in values. The decline can be attributed to challenges in non-EU markets, with volumes down by 8.5%, a trend not entirely offset by increased demand within the European Union, which saw a positive shift of 5.4%. Examining product categories, we observe a robust demand for bulk wines (up by 13.1%). In contrast, both sparkling wines (down by 3.2%) and bottled wines (down by 4.9%) are experiencing contractions, with red wines being particularly affected (down by 10%).
This comprehensive analysis of the state of the Italian wine sector is based on data from the UIV-Ismea Observatory, which utilizes Ismea-Nielsen-IQ data. This analysis underscores a continued sense of consumer caution, leading to "defensive" purchasing behaviors that favor promotional products or more cost-effective options over others. This trend is particularly evident in the robust performance of low-cost sparkling wines ("Charmat non-Prosecco"), which have now surpassed Prosecco DOC in terms of volume sales (24.8 million liters, with a continuous upward trajectory) and are gaining ground not only in discount stores but also in hypermarkets and supermarkets. Furthermore, prominent denominations such as Chianti Classico (with a volume decrease of 13.2%) and Prosecco DOCG (with a decrease of 14.5%) are ceding market share to geographic indications and common wines offering more accessible pricing.
Overall, wine prices remain elevated (up by 7% compared to the same period in 2022), and this trend has contributed to a more resilient sales performance in segments with lower cost structures. For instance, the only format experiencing growth on store shelves, whether for wines with designations or common wines, is plastic and bag-in-box packaging, which boasts an average price of 1.8 euros per liter.
In terms of wine types, white wines (down by 3.9%) and rosé wines (down by 3.6%) are performing relatively better than the overall average decline (down by 3.9%), while red wines are still facing challenges (down by 4.8%). Sparkling wines are showing positive momentum (up by 0.6%), with growth observed in Asti (up by 4.5%), but mainly in the previously mentioned "Charmat non-Prosecco" category. Without this category, the sparkling wine segment would see a decrease of 3.6% in volumes. In the IGP (Indicazione Geografica Protetta) segment, there are still negative signs for the main types. Among the top ten, only Vermentino di Sardegna, Puglia IGP, and Cannonau are exhibiting positive dynamics (up by 4%, 2%, and 3%, respectively, in terms of volume). The situation for Chianti is in regression (down by 4.4%), while the performance of Montepulciano d'Abruzzo has shown signs of improvement, going from a 14% decline in March to 9% in June and further recovering to 6.6% in September. Sicilian Nero d'Avola has seen a significant 12% decline, and other IGTs, such as Salento IGT (down by 9%), Emilian Lambrusco (down by 11%), Oltrepò Pavese Bonarda (down by 15%), and Verdicchio di Jesi (down by 18.9%), are also grappling with substantial decreases. Among Veneto wines, Valpolicella has seen a 2% decline, Bardolino is down by 3.4%, while Soave continues to perform positively, closing the nine-month period with a 5% increase. In terms of distribution channels, there is a more pronounced gap in discount stores, especially in the Dop and IGP segments, with a decrease of 6.8%, indicating that consumers are more price-sensitive in their shopping habits.
In conclusion, the Italian wine industry in 2023 paints a diverse picture, reflecting both challenges and opportunities. While the first nine months have seen a slowdown in exports and variations in sales, there is a notable resilience within the market. Consumers are adopting a cautious yet adaptable approach, favoring value-driven choices and looking for promotions while still indulging in the occasional luxury. The rise of low-cost sparkling wines and the consistent performance of wines packaged in plastic and bag-in-box formats are noteworthy trends.
Although certain denominations have faced challenges, there are shining stars in this landscape, including growth in categories like white and rosé wines, as well as select IGP varieties. As the year unfolds, the Italian wine sector continues to adapt to evolving consumer preferences and market dynamics. The industry's enduring appeal, fueled by the diversity of its offerings and its commitment to quality, remains a source of optimism. These fluctuations are part of the ever-changing world of wine, offering producers and consumers alike a chance to explore new horizons and discover hidden gems in the world of Italian wine.
