The wine industry reacts proactively to the economic crisis
February 1st – Commissioned by ProWein, Geisenheim University surveyed experts from the entire value chain of the wine industry from all over the world for the sixth time at the end of 2022. Participants include wine producers from the most important wine-growing countries in the Old and New World, exporters, importers, specialist wine merchants as well as representatives from the food service/hospitality and hotel industries. The ProWein Business Report 2022 continues ProWein’s unique, regular “Marktbarometer” (Market Barometer) for the international wine industry produced since 2017 and assesses the significance of the challenges facing the industry during the current economic crisis.
“This year again almost 2,500 international experts from 47 countries have shared their insider knowledge with us,” says Prof. Simone Loose, Head of the Institute for Wine and Beverage Business at Geisenheim University. “The industry faces major challenges caused by rising costs and disrupted supply chains. Interesting to note here is that industry leaders are proactively responding to the economic crisis. They tap into new markets with their products and react to traders’ and consumers’ needs with very innovative solutions.” These include – according to the survey – alternative wine packaging and wines with little or no alcohol.
“For the industry it is more important than ever to enter new export markets now, to follow market trends and network. That is precisely the strength of ProWein. We provide the industry with the right contacts, information and connections for all of these requirements. If not here, then where?” asks Michael Degen, Executive Director at Messe Düsseldorf and responsible for ProWein.
The most important results at a glance
The industry entered 2022 with positive expectations. Producers and traders hoped for a recovery from the negative impact of Covid-19. These hopes were not or only partially fulfilled. In general, the industry therefore is cautious about the future.
Like in the previous year, rising costs and supply chain disruptions rank top of the list of threats and challenges for the wine industry. However, the degree to which the industry is affected has clearly increased. In addition, the economic slowdown threatens to reduce wine sales.
The global economic upturn after Covid-19 already led to a greater demand for energy and rising energy prices in 2021. With the war in Ukraine and sudden collapse in energy supplies in 2022, prices in many parts of Europe have therefore often more than doubled compared to 2020. Due to their higher energy consumption, producers are significantly more affected by this than wine traders.
Almost all producers were affected by transportation problems and supply chain disruptions. Wine producers managed to successfully buffer a large part of the supply problems. As a result, the wine trade was significantly less affected. From the industry’s perspective, transportation and supply issues will continue to present a major challenge for their business.
For further information as well as the complete ProWein Business Report 2022: https://www.prowein.com/en/Media_News/Magazine/Business_Reports/Business_Report_2022
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