Italy remains a leading force in the global wine industry, with 2023 reinforcing its position as the top exporter by volume, surpassing Spain, and ranking second in value after France. This achievement has been largely driven by the growth of the sparkling wine segment, which has shown significant momentum. Preliminary data for 2024 also points to a positive trajectory, standing out from global market trends.

These findings are highlighted in the Ismea report, conducted as part of the National Rural Network (RRN) program. The report examines structural changes and market dynamics within the Italian wine sector while addressing key challenges and potential future developments.

Transformation and resilience in the Italian wine sector

The report reveals significant shifts in Italy's wine production landscape. On one hand, there has been a steady increase in business size, and on the other, a notable renewal of grape varietals. Thanks to incentives for vineyard restructuring and conversion, over 330,000 hectares - almost half of Italy's total vineyard area - have undergone transformation.

The Italian wine sector continues to demonstrate resilience and adaptability, despite challenges posed by global economic and geopolitical uncertainties. These factors have contributed to a slowdown in international demand. Additionally, evolving consumer preferences, shaped by new lifestyles and cultural changes - particularly among younger generations - are reshaping the market. Yet, Italy's ability to anticipate and adapt to these shifts has allowed it to maintain a competitive edge.

Key Consumer Trends

The Ismea-RRN analysis highlights several trends reshaping the wine market, reflecting how consumer preferences are evolving in response to cultural and societal changes. The main trends include:

• Sparkling wines and low-alcohol options: These products are gaining traction for their versatility and appeal as lighter, more adaptable choices for various consumption occasions.

• Declining demand for red wines and price polarization: Red wines, traditionally associated with meals and "classic" consumption patterns, are experiencing a slight dip in demand, particularly among younger consumers. At the same time, the market is becoming polarized, with increased demand for premium, high-quality wines on one end and budget-friendly, accessible options on the other. This trend pushes producers to diversify their offerings to meet the needs of varied market segments.

• Focus on health and sustainability: Health and environmental concerns are taking center stage for many consumers. There is growing interest in sustainably produced wines and transparent, eco-friendly production practices. At the same time, the rise in demand for lower-alcohol wines reflects a heightened awareness of the impact of dietary choices on health.

These trends highlight critical areas for Italian wine producers to focus on to sustain and enhance their competitiveness. Emphasizing quality, innovation, and expansion into new markets will be key to navigating future challenges and adapting to an ever-changing industry landscape.