2023 bulk wine imports slowed, but trade seems to be rallying

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By all accounts, 2023 was a tough trading year for bulk shipments with most of the major importer countries posting declining volume and value purchases, mirroring consumer patterns. However, some positive signals are coming through for 2024, ushering in new opportunities for innovation and brand development.

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A cursory glance at the world’s top 7 importer countries of bulk wines throws up a similar story, irrespective of the markets: aside from Germany, which bucked the overall trend with a 5% increase in bulk imports (bulk and bag-in-box) by volume (-1% by value), all the other leading import countries were down last year, sometimes in the double digits. As a noteworthy exception to this rule, Germany saw its bulk purchases rise by 5% to 7,670,000 hectolitres, though bag-in-box imports dropped by 2% to 290,000 hl. Spain holds a 40% share of total bulk imports by volume, closely followed by Italy with 33% which far outstripped the third and fourth supplier countries, France (6%) and South Africa (5.5%).

Differing import models

When it comes to the second largest bulk importer country, the United Kingdom, there is a complete reshuffle in terms of supplier countries, with a distinct preference for the New World: Australia by far leads the way, with 33% of total imports (bulk and BIB) of 4,630,000 hl (-7%), followed by Chile (13%), South Africa (13%), the United States (11.5%) and New Zealand (6.5%). This can undoubtedly be explained by the greater gains from shipping in bulk over long distances. As Dr Peter Stanbury , research director with the Sustainable Wine Roundtable , points out “for a UK retailer, bulk shipping only really makes sense if you’re in Southern Europe and further afield”. Conversely, France, the third largest importer country of bulk wines, reverts to a more traditional European model: Spain corners a 74% share of the market, where bulk imports fell by 4% last year to 4,490,000 hl. Volume consignments by other producer countries – mainly Italy, South Africa, Australia and Chile – pale in comparison with Spain.

China continues to fall

Across the Atlantic, the USA also bought less bulk wine (including BIB) in 2023, with a significant 18% drop to 4,080,000 hectolitres and plummeting values (-25.5%). Bag-in-box shipments to the world’s leading consumer country suffered, declining 13.5%, though value sales held up (+5.5%). The large 2023 Californian crush compared with previous vintages likely dampened enthusiasm for buying bulk outside the country. Aside from Italy, which followed a similar trend and decreased its bulk imports by 14.5% last year (Spain corners 91% of the market), another noteworthy declining market was China. After several years of falling wine sales, 2023 was no exception: bulk wine imports plummeted by 18% in volume to 910,000 hl and 32% in value. The primary supplier is Chile with a 79% share – the balance is shared by France, Spain, South Africa and Australia. Interestingly, although Australian bulk wines were not affected by the countervailing duties slapped on the country’s exports to China from 2021 to 2024, bulk shipments did not compensate for this. As Paula Edwards, general manager at Winegrapes Australia , stressed:

“Even though the tariffs didn’t apply, bulk wines were significantly affected…because there was no guarantee that you could ever get wine into China”.

A glimmer of hope

The bulk wine trade was undeniably weighed down last year by the same negative trends affecting the entire global wine market. The squeeze on consumer spending, spiralling costs, prevailing economic uncertainty due to geopolitical tensions and the underlying trend towards more moderate drinking took their toll on shipments last year. Against this backdrop, buyers have been reluctant to commit, servicing only their immediate short-term needs. But a glimmer of hope seems to be emerging. In its latest monthly report, international brokerage company CIATTI Company commented that “The global bulk wine market reaches the midway point of 2024 with activity levels ostensibly healthier than they were at the same stage last year”. It cites two major drivers: the relative supply-demand balance of generic white wine, which in major producer countries has allowed suppliers to offset declines in red wines, at least partially; and China’s March removal of punitive tariffs on Australia, which has “quickly rejuvenated Australia’s red wine shipments”. It could be added that global bulk shipments to the US rose by 6% in volume and by a staggering 20.5% by value over the first quarter of this year. Negative market trends will not reverse overnight – threats of tariffs continue as part of the China-EU trade war on BEVs and with Russia due to the Ukrainian conflict – but these positive signals could bolster buyer confidence. Also, as Ciatti points out, “the abundance of affordable bulk wine, from standard qualities to premium… offers opportunities for new brands and product innovation”.

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?By Sharon Nagel