The export of Italian wine is growing, to the point that the large producers make over 55% of their sales across the border, with peaks reaching 90%. At the same time, however, there is a heavy imbalance on some markets: according to a study by Mediobanca, Italy has a concentration index in the top destination countries of 1.108 compared to 730 in France, 711 in Chile and 632 in the Spain. Federvini underlines this in a note, noting that “this aspect, on the one hand, does not take into account that a more extreme diversification could avoid problems in the event of potential adverse events (duties, Brexit, …); on the other hand, in markets where Italy is more present, the price of the product is on average lower than in secondary markets”.
For Federvini, "the risk is to lose an overview by neglecting to explore more eccentric, riskier geographical areas but also with a higher potential development rate (South America, Southern Africa, South East Asia and Oceania)".
The theme of diversification "does not only concern the geographical area but also the products" says Sandro Boscaini, President of Federvini. “Today we are witnessing the triumph of bubbles on a global scale. It is precisely in this phase that we must be particularly good and use Prosecco as a spearhead on the most distant or most difficult markets, leading the way and without luring us into the temptation of single-products”.
Mediobanca also reveals that the Italian wine industry, today, has a higher profitability than that of the food sector (8,7 against 8,2). This value originates, in large part, from the ratio between Net Operating Margin (MON) and Added Value which today has reached 44% against 30,6% for food as a whole. This means that the sector derives added value from sales thanks to the ability to leverage the iconic value of Italian wine products.
In terms of size, the world of wine is no exception to the rest of the Italian industry: the Italian market, second in value after that of France, has only two top players (equal to 6,3% of the total production value against 10,2% of France and 31% of Spain).
As for market prospects, by 2025 China will become the second world market behind the United States with 13 billion dollars overtaking France and Germany; in terms of value it will always be France that excels, but China will reach fourth place overall behind the USA, Italy and Spain. In exports France and Italy always on the shields with 16 billion dollars and 11 billion.
“We need to diversify, aim for leaner structures and think in terms of a system with business models that are both solid and flexible”, concludes Boscaini. “Only in this way will we be ready for the challenges of the near future with valuable products and a precise identity”.
