The Global Wine Industry

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The Global Wine Industry

  1. 1. The Global Wine IndustryMarket Exposé © 2012 Matthias Jütte
  2. 2. About USD 100 bn. spent on wine/year; US, FR, UK arelargest markets, Europe accounting for > 50%Global expenditure on wine in mn. USD (2009)Source: University of Adelaide Wine Research Center, Global Wine Markets 1961-2009(http://www.adelaide.edu.au/wine-econ/databases/GWM/) © 2012 Matthias Jütte
  3. 3. EUR and AUS have strongest relative preference forwine, USA show large potential albeit negative trendWines share of total alcohol consumption (2009)Source: University of Adelaide Wine Research Center, Global Wine Markets 1961-2009(http://www.adelaide.edu.au/wine-econ/databases/GWM/) © 2012 Matthias Jütte
  4. 4. Premium wines sell at USD17/bottle on average; FRAand USA largest markets with highest pricesRetail (tax-inclusive) total and unit value of wine consumption, by quality, 2009NP: non-premiumCP: commercial-premiumUP: super-premiumSource: University of Adelaide Wine Research Center, Global Wine Markets 1961-2009(http://www.adelaide.edu.au/wine-econ/databases/GWM/) © 2012 Matthias Jütte
  5. 5. Bottles above USD 12 account for USD 2 bn. (~20% ofmarket) in sales in the United StatesUS wine sales by wine price segment (non-convenience, 2010)Source: The Nielsen Company (via http://wineindustryinsight.com/?p=25703) © 2012 Matthias Jütte
  6. 6. Highest per capita spending for high-priced wines inFRA and AUS; UK well above average in mid-priceRetail (tax-inclusive) expenditure per adult on wine, by quality, 2009NP: non-premiumCP: commercial-premiumUP: super-premiumSource: University of Adelaide Wine Research Center, Global Wine Markets 1961-2009(http://www.adelaide.edu.au/wine-econ/databases/GWM/) © 2012 Matthias Jütte
  7. 7. Fine wines are a USD 4 billion market, dominated byBordeaux wines (95%)Characteristics of the fine wine market  The top Chateaux of Bordeaux contribute about £2bn to the market each year.  Global annual sales of investment grade Bordeaux wines on the global secondary markets is approximately £1.5bn.  The stock of investment grade wines held by merchants and individuals is estimated at £6bn to £8bn globally and £1.5bn to £2bn is stored in the UK.Source: wealthmonitor.com; Lunzer Wine Investments(http://www.wineinvestment.org/Fine_Wine_Market_Outlook_2012.pdf; http://lunzerwineinvestments.com/Private-investors/FAQs.aspx#q5) © 2012 Matthias Jütte
  8. 8. Potential customers can be differentiated based on theirattitude towards wine and related preferencesDifferentiation of customer types for wineBruweret al.(2002) Johnson and Bruwer (2003) Working definitionRitual-oriented conspicuous wine Image-oriented, knowledge seeking Vinophileenthusiasts wine drinkersPurposeful inconspicuous premium Conservative, knowledgeable winewine drinkers drinkers Experimenting, highly knowledgeable wine drinkersFashion/image-oriented Beginning wine enthusiastBasic Basic wine drinkersEnjoyment-oriented social drinkers Enjoyment-oriented, social wine Casual drinker drinkersSource: Bruwer, Li (2007)(http://academic.research.microsoft.com/Publication/42472537/wine-related-lifestyle-wrl-market-segmentation-demographic-and-behavioural-factors) © 2012 Matthias Jütte

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