The developing markets of Asia Pacific, Eastern Europe, Africa and the Middle East are expected to lead growth in the wine industry over the next five years.
A survey by the industry analyst Euromonitor into the global wine market says that in the last five years Western Europe saw its volume share erode, constrained by declining volume sales in major markets like France and Italy, in which younger consumers shifted away from traditional patterns of regular consumption.
In the same period, Asia Pacific saw volume sales up 25%. This was fuelled by the increasing demand for grape wine products, which are not traditionally produced and consumed in the region.
Going forward, the developing regions of Asia Pacific, Eastern Europe, Africa and the Middle East are expected to lead growth in both volume and value terms. While volume sales in Africa and the Middle East are set to rise 25% over the period to 2007, Asia Pacific and Eastern Europe are forecast to show substantially stronger growth at 37% and 40%, respectively.
“Ongoing urbanisation will be an important factor as it creates significant concentrations of consumers for emerging large-scale retail formats and leads to expansion of wine’s core consumer base, the urban middle class,” the report said.
Latin America is the only region expected to show volume decline, as economic difficulties persist in major markets, notably Argentina, and consumers shy away from non-essential purchases until conditions improve.
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By GlobalData
