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(Last updated: 26 Oct 2007)
Trends and opportunities
The market
Germany is the sixth largest producer of wine and the third largest exporter of wine. Furthermore, Germany is the fourth largest wine market in the world. However, Germany still lags far behind countries such as Italy and France, where per capita consumption is double the German figure at around 50 and 60 litres, respectively.
Germany is still the largest market in the world for sparkling wine, with per capita consumption of just above four litres. Sekt (German sparkling wine) is a luxury in Germany that everybody can afford, in contrast to most other countries, where sparkling wine is a luxury for special occasions and celebrations.
Organic products have generally taken off in recent years in the food market due to health scares and increased consumer health awareness. This trend also influenced the wine sector, and there are more organic wines available. According to industry consensus there is potential in the market for organic wines as consumers become more interested in health issues.
Approximately two per cent of the German wine production is organic. This special niche is expected to grow steadily over the near future.
Opportunities
German wine consumption of dry and semi-dry wines have been growing over the past four years (even overtaking beer consumption) while all other alcoholic beverages are decreasing.
German consumers increasingly prefer red wines, which already makes up 59 per cent of the wine market. Imported red wine accounts for three-quarters of the total red wine purchased by German consumers. However, following the general consumer trend, German wine growers have continuously increased their red grape crops (with heavy subsidies from the state) so that it covers up to 29 per cent.
According to the Deutsches Weininstitut and other industry sources, German white wine has a share of 71.1 per cent in white wine. Riesling is increasingly popular with growing export success and there is talk in the industry of a 'Riesling Renaissance'. Popular imported white wine varieties include Sauvignon Blanc, Chardonnay and Pinot Grigio.
Rosé wine sales remained steady.
Competitive environment
Germany is also an important import market for wine with Italy, France and Spain as the top three suppliers to Germany accounting for approximately 80 per cent of the market share of wine imports.
Despite strong competition from imported wines, the older German generation still favour homegrown wine.
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