Germany Cuts Wine Imports Sharply in 2024

Germany has significantly reduced its wine imports in the first half of 2024, according to data from German customs, with a sharper decline in value than in volume. This drop is primarily attributed to a decrease in imports of higher-priced wines, negatively impacting premium wine suppliers while benefiting those offering lower-priced options. Over this period, total wine and must imports fell by 8.9% in value to €1.2 billion and by 1.2% in volume to 650 million liters. The average price per liter also dropped by 7.8%, settling at €1.85. This marks the worst first half-year in terms of volume in eight years and the second worst in terms of value, surpassed only by 2017.

The volume of imports over the last three years has remained stable at approximately 650 million liters for the first half of each year, a significant decrease from over 700 million liters recorded before 2020. In terms of value, however, the negative trend has been more pronounced, with a loss of nearly €200 million since the peak recorded in the first half of 2021. The downward trajectory became particularly apparent in February 2022, coinciding with the Russian invasion of Ukraine. The economic repercussions, including rising energy and defense costs, inflation, and increased uncertainty, have likely dampened consumer demand and, consequently, wine imports.

The decline in Germany's wine imports during this period has been driven primarily by a reduction in the average price. Sales of higher-value wines, such as sparkling and bottled still wines, have dropped significantly, while imports of bulk wine and must have increased. Spain has benefited from this trend, becoming Germany's top supplier of must and overtaking Italy in bulk wine sales. Spain's exports of wine and must to Germany rose by 16.5% in volume and 9.9% in value, reaching 230 million liters and €197 million, respectively. In contrast, France and Italy, the leading suppliers of higher-priced wines, have been the most affected by the decline.

From the €117 million decrease in German wine and must imports during the first half of 2024, sparkling wines accounted for a €35.4 million loss, while bottled still wines dropped by €87 million. These declines, representing a 15.8% and 10.6% drop in value respectively, were not offset by the €6 million increase in bulk wine imports and the €1.4 million rise in must imports. In volume terms, sparkling wine imports fell by 14.7%, equivalent to a loss of 5 million liters, and bottled still wines dropped by 4.8%, or 12 million liters. These losses were nearly offset by an 8.4 million-liter increase in bulk wine imports and a 1.1 million-liter rise in must imports.

The average price of sparkling wines remained relatively stable, dropping slightly from €7.24 to €7.14 per liter, while bottled still wines saw a sharp price reduction of 6.1%, falling from €3.35 to €3.14 per liter. Bulk wine, on the other hand, maintained an average price of €0.66 per liter. Must imports also held steady in terms of pricing, with Spain taking the lead from Italy as Germany's top supplier.

In the first half of 2024, Germany sourced wine from 67 countries. However, losses were concentrated among the top suppliers, particularly France and Italy, which suffered declines of €60 million and €42 million respectively. Spain, by contrast, gained market share, with Austria and Hungary also seeing modest increases in volume. Among the top 11 suppliers, only Spain and the United States reported increases in value, with the U.S. experiencing a slight rise of 1.3% to €26.8 million.

The German wine market remains highly concentrated, with France, Italy, and Spain accounting for 81% of total imports by value and volume. Spain's surpassing of Italy in the first-half figures marks a notable shift, though Italy still holds a narrow lead in annual volumes. If current trends continue, Spain is expected to fully overtake Italy by the end of the year.