What happened to the wine industry in 2020?
We’ve brought you the facts on the state of the global shipping industry and we’ve given you the latest update on global trade routes. Now it’s time to look at the landscape of global wine industry. The International Organisation of Vine and Wine (OIV) recently released their annual state of the world vitivinicultural sector report for 2020. It is from here we’ll highlight the main points you need to know. Let’s take a look.
World wine production during 2020 grew by almost 3mhl (+1%) compared to 2019. The dominating countries behind the level of production are Italy, France, and Spain, which together make up 53% of the total world wine production. Whilst in China, they estimate a 16% decrease in production, adding to their already declining level reported in 2019.
World wine consumption made a 3% decrease last year. The lowest recorded level of consumption since 2002. Why? global lockdowns limited access to the on-trade, lack of tourism and ability to socialise, change in consumer behaviour, wineries were not geared up for direct to customer (DTC) sales. There are plenty of reasons we can attribute to the decline in consumption.
Hit hard in terms of consumption levels was South Africa, who show a decline of 19.4% compared to 2019. The lowest level of consumption for the last 20 years! A major factor in the reduction of drinking is down to the fact that local sales of alcohol were banned, even online, for 14 weeks during the COVID-19 lockdown.
Exports wise, Italy earned itself the top spot as the largest exporter by volume accounting for 20% of the global market. Together with Spain and France they dominate 52% of the world market with an export volume of 54.6mhl.
In the USA, interestingly, their export volumes grew by 1.8% whilst their export value declined 8.5%.
Import volume champion, probably by no surprise was the UK at 14.6mhl, (+4% YOY), who also ranks second in terms of value at 3.8bnEUR. Something to note, bulk wine imports increased by 11% during 2020 and grew in value by 12%. That means bulk imports took a 40% share of the total import volume. If you are considering a switch from bottle to bulk, check out our global bulk shipping services and flexitank range.
Canada are reported to have a huge increase in the Bag in Box (BiB) category, with a volume upturn of 24% and value increase of 19%. But the market share for this category is only 2%.
Also, did you know, 78% of the total volume imported into France during 2020 was in bulk.
2020 was certainly a turbulent time for the wine industry and 2021 has its challenges. That said, we are the company who have been passionate about the international trade of wine since 1844, and we are here to help you ship full container loads or cases and pallets. Whatever you need, whenever you need it, we’re here to support your business.