The USA remains the world’s most attractive wine market, with China entering the top 5, according to a new Wine Intelligence report
The Global Compass 2017–18 report is Wine Intelligence’s latest review of 50 key wine markets across the world. Using a unique formula that takes into account both general economic and specific wine market measures, the report is a definitive ranking of the world’s most attractive export markets.
For the fourth consecutive year, the USA holds pole position with Germany and Canada earning second and third position respectively.
Under the Global Compass report’s market classification framework, the USA and Canada are both considered Growth markets, where wine is continuing its journey towards mainstream product status, and experiencing volume growth.
Germany is the only “mature” market – defined as a market where wine has reached its potential and volumes are stable or declining – to appear in the top 5 attractive markets. Strong recent economic growth and high levels of still wine volume and value support Germany’s ranking, but it remains a highly competitive market that ranks 48th out of 50 for new wine drinker potential and market profitability.
But Germany’s weakness is the USA’s strength: while it is top in terms of still wine consumption volume, it is middle of the pack in terms of per capita consumption (just 12 liters per annum). This points towards great untapped potential in the USA’s adult population for new wine drinkers increased imported wine volumes and greater market profitability.
China also boasts an enormous would-be population of wine drinkers lying in wait, with still wine consumption levels showing plenty of room for growth. Still classified in the Compass system as an Emerging market, where wine is growing from a relatively small base, China has climbed the rankings from the 7th most attractive market in 2016 to the 5th today.
Commenting on the report, Wine Intelligence’s Chief Operating Officer Richard Halstead said: “This year’s study has confirmed that the USA is a market still a force to be reckoned with, scoring well for almost all measures. But the USA still lags in terms of market accessibility, ranking in 24th place.
The complexities of operating over there can make the USA a difficult country to break, which is why this year we are releasing our first USA Compass report. This report will uncover the most attractive states and help exporters determine the best route to market for their products.”
“For exporters targeting the Chinese market, the last year has seen a 16% growth in imports while domestic consumption appears to have fallen. The evidence on the ground in China is that the supply chain is becoming more adept at getting the right wines into the right consumers’ hands at the right price, so this bodes well for further imported wines growth.”
Source: Winetitles Media