Rabobank Report: Global Wine Industry Q2 2015

Japanese Wine Market Comes of Age; US Value Growth Outpaced Volume Growth

NEW YORK--()--Rabobank has published a new report on the global wine industry, with an outlook on supply, demand and pricing in key markets worldwide, particularly Japan.

Rabobank’s Food & Agribusiness Research team says that the Japanese wine market has ‘come of age,’ with wine drinkers increasingly open to new consumption occasions, wine styles and innovations. Japan ranks as one of the world’s most valuable wine import markets. However, many global wine-exporting regions had turned their attention away from Japan after the market declined from its peak 16 years ago.

“In more recent years, the hype surrounding the China wine market boom has coincided with a significant, yet much-less publicized, renewed interest in wine across the Sea of Japan,” according to Rabobank senior wine analyst Marc Soccio. “This has opened the way for New World producers, most notably Chile, to gain a foothold in the Japanese market, with the added advantage of a Free Trade Agreement.”

While the challenging economic environment in Japan remains, this is a wine market that is growing most strongly at premium price points which makes it very interesting to global wine producers. With competition expected to continue to heat up, more New World countries, and less familiar Old World powers such as Spain, are set to follow Chile’s lead in this market

U.S. Market

Rabobank’s analysts look at other key markets besides Japan. Highlights of the research on the U.S. market include:

  • The U.S. wine market continued to expand in 2014, though volume growth was well below rates seen in previous years. Value growth accelerated at a faster pace, with growth coming entirely in the above USD 9 per bottle range.
  • Total U.S. import volumes declined 2% in 2014, though value trends were up 2% overall. The dramatic strengthening of the U.S. dollar in the second half of 2014 may drive more imports in 2015, but the broad availability and good quality of current domestic supply will continue to make the U.S. market highly competitive.
  • U.S. wine exports are estimated to have declined by 2% in volume and 1% in value in 2014, with the 5% decline in bottled exports more than offsetting 1% growth in bulk wine exports.
  • California wine grape production fell by an estimated 10% in 2014, to 3.9 million tonnes. Despite that decline, San Joaquin Valley – which produces for lower-priced segments – appears to have excess supply due to shifting consumer preference and large harvests of previous years.
  • At the start of 2015, both U.S. imports and exports skewed downwards due to the West Coast port strike.

For more information about this publication please contact its authors:

Marc Soccio: marc.soccio@rabobank.com, Australia, +61 4 1841 3187 
Stephen Rannekleiv: stephen.rannekleiv@rabobank.com, USA, +1 212 808 6823 
Elena Saputo: Elena.Saputo@rabobank.com, Europe, +31 30 7122375

Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries. In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry. Rabobank’s Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. www.rabobank.com/f&a

For a social media ready version of this press release:
http://rabobank-food-agribusiness-research.pressdoc.com

www.rabobank.com/f&a

Follow us on Twitter: @RaboWholesale @rabofoodagri

Contacts

Rabobank
Media:
Lynne Burns, 212-808-2581
Lynne.Burns@rabobank.com
or
Sarah Kolell, 816-516-7984
Sarah.Kolell@RaboAg.com
or
Jessup Wiley, 559-447-7946
Jessup.Wiley@rabobank.com

Contacts

Rabobank
Media:
Lynne Burns, 212-808-2581
Lynne.Burns@rabobank.com
or
Sarah Kolell, 816-516-7984
Sarah.Kolell@RaboAg.com
or
Jessup Wiley, 559-447-7946
Jessup.Wiley@rabobank.com