Danish Wine Imports Drop 9.7% in Value in 2023, First Decline in a Decade

In a surprising turn of events, Denmark's wine imports took a noticeable dip in 2023, marking a significant departure from the steady growth seen over the past decade. According to recent data from the Danish customs authority, the country saw a reduction in wine imports by 9.7% in value and 3.4% in volume, with the average price per liter dropping by 6.5%. This shift follows a decade of consistent increases, signaling a potential change in Danish consumer behavior or market dynamics.

To put the decline in perspective, Denmark imported a total of 176.5 million liters of wine in 2023, valued at 5.326 billion Danish krone (DKK). This translates to approximately 714 million euros, given the current exchange rate, with an average price of 4.04 euros per liter. The last half of the year was particularly challenging, with consistent drops in both volume and value across all six months, ultimately contributing to the overall yearly decline.

Despite these recent setbacks, Denmark remains a stable market for wine imports, with figures showing little fluctuation in volume over the past 23 years. In 2000, Denmark imported 180 million liters of wine, compared to 177 million liters in 2023. However, the value of these imports has grown significantly, with an average annual growth rate (CAGR) of 2.6%. This increase is attributed to the rising prices in various wine categories and the growing popularity of higher-value sparkling wines.

Interestingly, while the overall value of all wine types fell in 2023 compared to 2022, sparkling wine bucked the trend with a slight increase in volume, marking its best year to date. Meanwhile, bag-in-box wines managed to maintain their price levels, even as others dropped. Bottled wine continues to dominate the market, accounting for 50% of total volume, despite experiencing its worst performance in the historical data series.

Sparkling wine has shown the most relative growth in the Danish market this century, reflecting a shift in consumer preferences toward premium and celebratory options.

Denmark sourced its wine from 68 global suppliers in 2023, with notable shifts among the top ten. Argentina stood out, seeing a 39.4% increase in value despite a significant 35.6% drop in volume, driven by a 116% rise in average price. Spain was another exception, with a modest 0.6% increase in average price. Italy and France remain the top suppliers by volume, with 40.3 million and 29.6 million liters, respectively. However, both countries saw a decline in value, with France at -0.5% and Italy at -2.7%.

Spain maintained a stable import value of 486 million DKK, with a slight price increase. France continues to command the highest prices, averaging 58.43 DKK per liter, despite a 9.6% drop, more than double Italy's average of 27.59 DKK. Over the past 23 years, Italy has seen the most significant growth in the Danish market among these three leading suppliers.

Australia secured its position as the fourth-largest supplier by volume, with 22.4 million liters, followed by Chile and the United States, each at 12.8 million liters. Both Chile and the United States saw notable declines in volume, at -12.8% and -14.8%, respectively. Germany, Portugal, and Argentina rounded out the top ten, with Argentina experiencing the steepest volume drop at -35.6%.

In terms of value, the United States holds the fourth spot, despite a 22% decrease to 370 million DKK, followed by Germany at 307 million DKK, down 24.4%. Australia and Chile also saw double-digit declines in value, while Portugal and South Africa remained relatively stable. Argentina's value increased by 39.4%, completing the top ten list.

As Denmark navigates these shifts in its wine import market, it will be interesting to see how suppliers and consumers adapt. The slight increase in the volume of sparkling wines suggests a potential shift towards more premium and celebratory wine options, even as the overall market contracts. Meanwhile, countries like Argentina, which have managed to increase their value despite volume drops, may provide a blueprint for other suppliers looking to stay competitive in a changing market.

Denmark's wine market remains dynamic, reflecting broader trends in global trade and consumer preferences. As the industry continues to evolve, staying informed and adaptable will be key for suppliers looking to maintain their foothold in this traditionally stable but now increasingly competitive landscape.