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Grape News: Global Wine Manufacturing Industry Market Research Report from IBISWorld has Been Updated
Date:12/23/2012

Los Angeles, CA (PRWEB) December 23, 2012

Oversupply conditions have characterized the $102.2-billion Global Wine Manufacturing industry during the past five years due in part to consumer spending's first decline in 30 years. “Prior to the Great Recession, high production volumes resulted in a global glut of wine,” says IBISWorld industry analyst Agata Kaczanowska. “As a result, wine prices dropped and industry profitability declined.” In response, wine producers began manufacturing less wine; total volume slid during the past five years at an estimated 1.8% annualized rate to 248.2 million hectoliters in 2012. Much of this production decline occurred in Europe because the EU offered incentives for vintners to reduce winery acreage. This reduction in supply and rebounding demand have enabled wine producers to buoy prices, leveling the mismatched market and resulting in flat industry revenue since 2007.

Although the majority of wineries are small local operations, weakening consumption in traditional wine-growing regions is leading to a shift in ownership. Consequently, “many wine regions are undergoing consolidation in the face of heightening regional competition,” says Kaczanowska, “especially because wine consumption in emerging markets, such as in China and India, is growing quickly.” Due to consolidation, the number of wine makers decreased at a 2.2% five-year annualized rate to 21,183 in 2012. On top of that, some vineyards closed completely or halted production in underperforming locations, which depressed the number of industry establishments. Vineyard closures also contributed to the aforementioned decrease in wine production volume.

IBISWorld expects that the number of industry participants will diminish during the next five ye
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