Global Economic Slowdown Stagnate West Europe’s Fortified Wine Market
Posted on 02 October 2016 by KenResearch Food and Beverage,
Ken Research announced its latest publication on, “”, offering insights on fortified wine consumption in the West Europe Market. The publication includes an insightful analysis into the operating environment for the fortified wine market in West Europe. The countries covered in this report includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Republic of Ireland, Spain, Sweden, Switzerland, and United Kingdom.
Overview of Fortified Wine Market in West Europe
The Western Europe wine market is a vibrant, ever-changing and competitively challenging environment. United Kingdom is a key market for global wine trade, particularly in terms of sales value. Health concerns, along with changing lifestyles and demographics, mean that the volume of wine consumed/per capita wine consumption is reducing. Under discussion are potential tax policies to incentivize lower alcohol products, labelling changes to indicate calories (energy) per 100 grams, units of alcohol per glass or container, and health warnings.
Fortified Wine Market can be interpreted as a category which is struggling, main reason being the lack of consumer relevance. Fortified Wine is not well understood by consumers as the consumers are still dominated by older user perceptions and dated Sherry and Port- Led perceptions. However, it is well taken by the consumers once, consumers experience it for the first or the subsequent times.
Key Driving Factors inWest Europe Fortified Wine Market
Primary factors influencing the industry's performance include slowed per capita consumption growth and the proliferation of brands and styles, as well as competition from spirits and beer for consumer attention and occasions. The wine market in Europe is expected to witness a decline, major reason being the falling production of grapes in Europe. The rise in dominance of the US as a wine consumer is also expected to deter the growth of the wine market inEurope. Currently, 39% of the wine consumed is outside Europe, especially in countries such as the US, China, andArgentina.
Supermarkets and hypermarkets are the major distribution channels in Europe which is also a significant factor contributing to the growth of the fortified wine markets in Europe, since supermarkets allow the consumers to indulge in wine tasting before buying, along with making a choice of the origin and ageing of wine suitable to them.
Future of the Fortified Wine Market
The European Union still leads the global wine market but its share of exports has diminished quite considerably. France approximately had a global share of 35.5 percent and the rest of Europe had 36.5 percent. Despite the overall decline, sales of quality wines have been increasing and over the last 10 years imports of quality wines have grown by 10 percent per annum. A large number of factors are contributing to the fall in the wine market which includes, downturn in global economy, rising health concerns, over indulgence and binge drinking and most importantly, requirement of more informational labelling.
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