The latest data shows that wine and sparkling wine sales are picking up in Italy's large distribution (retail trade) market, which also bodes well for market trends in the coming months.
According to the Italian news agency Ansa and the 24-hour Sun, Virgil Romano, director of business insights at market research agency Circana, said: "Although the sales volume of wine and sparkling wine in Italy in 2023 is still declining (-3.3%), the trend is better than that of the previous year, with a sales growth of 2.5%, which is relatively stable, and the sales situation at the beginning of 2024 continues the recovery trend in the second half of last year." ”
Overall, the annual survey carried out by Vinitaly, Italy, shows that in 2023 756 million liters of wine and sparkling wine were sold in distribution channels, with a value of 3 billion euros.
The survey shows that sales of sparkling wine are outstanding, with 100 million liters sold in 2023 and worth 710 million euros, although their sales are still lower than in 2019, they are more dynamic than wine sales. Although wines account for 70% of the total mass distribution market, their recovery has been slower and shows different patterns in different segments and different classifications: static wines and wines with appellations of origin have performed better than average, rosé wines have better sales than white wines, and white wines have better sales than red wines.
Specifically, in 2023, Prosecco and semi-sparkling wines topped the list of the most frequently purchased wines in supermarkets and discount stores with more than 43 million liters sold, a clear advantage over Chianti with 16 million liters sold and Lambrusco with more than 15 million liters, followed by Montepulciano and Vermontino from Abruzzo. In terms of annual growth rates, the top wines are, in order, Abruzzo Cerasolo, Grillo, Pecorino, Lugana and Repolla.
"Consumers are showing a willingness to try new wines, as well as their focus on regional specialty wines, and distributors are meeting consumer demand by prominently displaying these wines on the shelves," said Virgil Romano. Pecorino, Lugana and Repolla are different, and their sales have been increasing for several years. The data also shows that people's pursuit of novelty is not affected by price, and consumers are even willing to pay a little more to try new wines. ”
However, prices remain a core issue, also because the sharp price increases over the past two years have disrupted the market and forced a re-examination of the price mechanism. Previously, 75% of bottles in the mass market were sold for less than 3 euros, but today this has dropped to 60%. The market supply has shifted to the middle and high-end, sacrificing the low-end and the price gap has widened. For example, wines with the Designation of Origin (DOC, DOCG or IGT) increased by 6.3% compared to 2022, reaching an average price of 5.4 euros per liter.
Wine and sparkling wine account for almost one-third of retail sales in discount stores, and their prices are 30 to 35 percent lower than those of traditional large sales channels. But in 2023, this convenience-oriented sales channel will be the most affected, as its products are concentrated in the lower and middle end and are also the most affected by price constraints. This also explains why discounters are increasingly investing in the high-end market. Private labels of large retailers experienced a similar situation in the first half of 2023. However, in the second half of the year, the relevant channels gradually recovered, and by the end of 2023, the market share reached 13.4%.
(The content is from the European Times, compilation: Li Shuo, picture source: Pixabay, please indicate)