Point Blank .... :: World is changing ... .... Demand for wine is also on decline
Take a closer look:
A survey conducted by an agriculture business chamber in France revealed that about 25 per cent of winemakers want to quit their profession. For them subsidized vineyard removal is the only to exit the wine business and receive at least some financial compensation.
Demand for red wine in general, and for the full-bodied, long maturing red wines with generally high alcohol content has slumped.
This has affected not just the signature 'premiers crus' in which monarchs and the global rich have always invested, but also the vineyards.
To wine lovers, traveling is a duty; ..... ... finding the holy grail of wines.
Reports in western media say, the region in France whose wine output is 85% red, there is a virtual existential crisis.
Bordeaux produces around 650m bottles of wine each year; but it currently sells only 500m. Demand for red wine in France has fallen by 38% in the past five years; in the 10 years to 2023 the fall was 45%. Nor is the slump confined to France.
Demand in the Chinese market has halved since 2017. US tariffs will undoubtedly hit the 20% of Bordeaux exports that previously went across the Atlantic. These consumption changes are likely to be irreversible, at least in the short and medium term, says a commentary in London's 'The Guardian' newspaper.
It is claimed that the younger generations are drinking 'less wine' === with a growing interest in other beverages.
Well, some could also welcome a fact of life that there is a "trend towards moderation" and non-alcoholic options.
In general term the global wine consumption is experiencing a decline, reaching a 60-year low in 2024.
This downturn is attributed to a combination of factors, including economic pressures, shifting consumer preferences, and changes in drinking habits.
Economic Factors:
Inflation and rising prices are impacting consumer purchasing power, making wine less affordable.
Wine faces growing competition from craft spirits, ready-to-drink (RTD) cocktails, and other alternative beverages, particularly among younger consumers seeking convenience, portability, and diverse flavors.
It is argued that a growing 'health consciousness', particularly among younger generations like Gen Z, is leading to reduced alcohol consumption including wine.
On the other hand; there's increased awareness of alcohol's negative health effects, and a rise in "sober curiosity" and preferences for low or no-alcohol alternatives like kombucha and mocktails.
Old need not be so much of Gold ?
Gen Z consumes significantly less alcohol than previous generations and prioritizes mental and physical well-being. This shift is redefining social norms and creating demand for alternative experiences and beverages.
Some info and travel wine guide!!
Thousands of people are dedicated to touring wine producing regions with the idea of learning about the interesting world of wine. The French Vineyards and Wineries of Northern France are your dream destination.
Complete “wine routes,” try new varieties, observe production processes and, above all, visiting the vineyards, are essential tasks for any wine enthusiast. These wineries and regions in Northern France cannot be missed.
Lying to the north-east of Paris, Champagne is a historic province. Famed for the self-entitled Champagne sparkling wine.
Champagne was not invented in this region, but Languedoc, in Southern France. However, it was quickly discovered that the climatic conditions in the Champagne region produced better wine than southern regions.
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Opt for Clariet !!
Fresher wines known as Clairet have made ways.
This is somewhere between a modern red and a rose and is meant to be drunk young.
Small amounts of clairet are still produced in parts of the Bordeaux region of France. There are moves to expand production with the aim of winning new consumers who have rejected heavier reds.
Covid and Wine business
The wine business has been hit hard by Covid19.
French major Bordeaux is facing challenges on multiple fronts.
** Exports (from France) declined by about 7 per cent to 235 million bottles.
The Chinese market shrunk due to Covid and consumption decline.
There are also a few critical questions:
One question asked in France preferably in their language is -- Has the wine region in France dug its own grave in terms of sales by focusing on its position in the luxury (high priced) segment for too long ??
In 2024 - the first half has felt like a tidal wave of woe for US wine producers.
Finally, take a pause. Breathe in !!
This is a new era. A post Corona era and also a time when there is trading wars all across.
Skeptics would say -- no matter what you look at, things are hardly great or good.
But at the same time, when people say that one or two specific industry is down, people jump to the conclusion that everyone’s doing terrible.
That may not be case. Some stories may not be a convincing one.
The argument or instanced cited could be complicated. Though overall volume sales are down and many small wineries are struggling, there are still bright spots in the market.
There are smart operators and savvy producers -- who are finding out ways to weather the storm.
It's all double-edged.
ends
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