Italian wine exports to the country's five key export markets declined 4.4% in volume and 7.3% in value in 2023, to €4.45 billion, new data has shown.
According to data published by the Observatory of the Italian Wine Union (UIV), exports to the US, UK, Canada and Japan all saw volume declines, however Germany closed the year with exports 7% higher due to a 16% increase in bulk wine orders.
The decline was particularly notable in the United States (-13% in volume), partly attributed to an excess of stock by local distributors, as well as in Canada (-11%), Japan (-11%), and in the UK (-9%).
Price Declines
Despite rising production costs, average prices fell 3%. This was driven by increased imports of cheaper bulk wine (-11%) and large formats (+6%), offsetting declines in bottled wines (-7%) and sparkling wines (-11%).
Sparkling wines were the only category to see a a price increase (+5%).
According to the UIV Observatory, 2023 was negative for all wine producing countries, due to destocking efforts by importers, inflation, and reduced consumer spending.
Global wine imports from the five top buyers closed at €16.9 billion, 7.5% less than the previous year, with volumes down 6.7%. The main exporting country, France, showed an even worse volume trend than Italy (-10%), but less deficit in terms of value sales (-5%).
Export Expansion
UIV President Lamberto Frescobaldi emphasised the urgent need for Italy's wine industry to expand beyond the five core export markets, which account for 56% of Italian wine exports compared to France's 50% and Spain's 40%.
He expects 2024 to be a difficult year, with low Italian production and an unfavourable economic climate. While raising unit prices is expected to be crucial, he warned that this could lead to further volume declines.
