Wine sector in Italy: an analysis by Mediobanca

04/07/2024

The Mediobanca Study Area recently published an analysis of the Italian wine sector, covering 253 major Italian corporations with a turnover of more than 20 million euros in 2022. Representing 88.4 percent of the sector’s national turnover, this study provides a detailed overview of market dynamics, sustainability and major M&A deals.

Forecast for 2024: sales growth and bubble boom

According to forecasts for 2024, the Italian wine sector will see an overall sales growth of 2.6%. Bubbles are set to enjoy considerable success, with a 3.7% increase in revenues and a 6.8% increase in exports.

2023 performance: stability and market evolution

In 2023, the industry maintained stable margins, with an increase in Ebit margin of 1.4% and a net income to sales ratio of 4.2%. Although quantities sold decreased by 4.5%, significant growth was observed in the high-end segments, with sales increasing by 12.7%. Wine tourism also showed positive signs, with revenues up 15%.

Sustainability in the industry: challenges and opportunities

Only 35% of the largest Italian wineries prepare a Sustainability Report, highlighting a need for improvement in this area. The main difficulties include the complexity of the validation process and the lack of benchmarks. It is clear that the sector needs more resources and expertise to address sustainability challenges.

Global scenario: production and consumption

Globally, wine production in 2023 is estimated at 237 million hectoliters, a 9.6% decrease from 2022. Global consumption reached 221 million hectoliters, a decrease of 2.6%. In Italy, production fell 23.2%, with per capita consumption at 37.4 liters per year. However, Italy retains the lead as the world’s leading exporter in quantity and the second in value.

Key players in the industry: performance and outlook

Cantine Riunite-GIV is the market leader with revenues of 670.6 million euros in 2023, followed by Argea and IWB. Cooperatives such as Caviro and Cavit continue to perform well, with Caviro reaching a turnover of 423.1 million euros, up 1.4%.

PDO and PGI wines: Italy’s flagship

In 2023, 47.7% of Italian wine was classified as PDO, up from 38.5% in 2013. The regions of Piedmont, Tuscany and Veneto are the main producers of PDO wines, contributing significantly to the overall revenues of the sector. Tuscany stands out for its high Ebit margin (16.5%) and best ROI (6.3%).

Outlook for 2024

Forecasts for 2024 are optimistic, with significant growth expectations for regions such as Emilia-Romagna, Puglia and Piedmont. The Italian wine sector continues to evolve, focusing on quality and sustainability to maintain its leadership position globally.

For more details and to download the full survey, click here.

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