Wine Sector: Definitions and Nuances from Global to Country Analysis—a Comparison Between Old World, New World, and Emerging Wine Countries from 2005 to Current

Consisting of wine, beer, cider, ready-to-drink (high-strength premixed alcohol), and spirits, the worldwide alcoholic drink market is a $1397 billion industry. In 2015, the size of alcoholic drink market value was spread as follows: $613 billion for the beer, cider, and perry (pear-based cider) market $472 billion for the spirit market $287 billion for the wine industry $24 billion for ready-to-drink beverages The beer and spirit industries are highly concentrated. The 10 largest brewers have 60% market share, while the 10 largest distillers have a market share of 26%. On the other hand, the wine industry is not as concentrated with the 10 largest wine companies holding 14% market share (Easton Sally, 2015); most of these companies are American-based. On a volume basis, the worldwide wine and spirit industries are comparable, whereas the beer industry is nine times bigger. When we compare the categories, in volume, the market share for beer and cider is 44%, spirits is 39%, wine is 16%, and ready-to-drink is 1%. Based on International Organization of Vine and Wine (OIV) data, wine production has been decreasing in the Old World, while the New World has been reporting increases in wine production. New players coming from emerging countries have also moved into this lucrative wine market with a focus on their local market for the moment. These changes will have several notable consequences for wine industry stakeholders: firstly, the increasing number of wineries in the New World (due to the market growth) and the associated competition; secondly, the decreasing vineyard area in the Old World and combined improvement in quality to maintain not only its local but also its international positioning; and finally, the need for a marketing strategy to move local consumption to internationalization for the emerging countries. World wine production exceeds world consumption, putting negative pressures on prices. However, the situation is very different depending on the wine region, with sizable differences between how prices will change for the historical wine regions (Napa, Bordeaux, Rhone Valley, Burgundy, Barolo, etc.) compared with the regions that lack international awareness (Lodi, Languedoc, Romania, etc.).