Spanish wine consumption rises to 978 million liters

Wine consumption in Spain has reached 978 million liters, reflecting a 0.7% year-on-year increase as of November 2024, according to data from the INFOVI system. This growth, though modest, marks a stabilization in the market following periods of uncertainty. INFOVI, which collects declarations from wine and must operators, serves as the basis for the analysis prepared by the Interprofessional Wine Organization of Spain (OIVE). The report highlights a sustained trend of moderate growth, approaching an annual rate of 1%.

Spain's wine market is divided into three main channels: retail, hospitality, and the so-called "third channel," which includes sales in wine shops, wine clubs, online platforms, e-commerce, and direct sales at wineries. According to Nielsen IQ, the combined volume of the retail and hospitality sectors reached 6.27 million hectoliters over the last 12 months, showing a slight decline of 1%. Hospitality sales fell by 1.9%, while retail saw a smaller drop of 0.5%, indicating some stagnation in these traditional sales outlets.

Meanwhile, the third channel, which is not regularly audited by market research firms, accounts for approximately one-third of total consumption, with 3.51 million hectoliters. This segment, encompassing more specialized and direct-to-consumer options, experienced a 4% increase, partially offsetting declines in other channels.

An analysis of wine categories reveals mixed results. Sparkling wines command the highest average price at €7.71 per liter, followed by wines with Protected Designation of Origin (PDO), priced at €6.45 per liter. Despite a 0.9% drop in the volume of PDO wines sold, the decline is primarily attributed to a 2.8% reduction in the hospitality sector, which was not fully compensated by a 0.6% increase in retail. In terms of value, PDO wine sales rose by 0.4%, a figure below the 1% average recorded in international markets.

Wines with Protected Geographical Indication (PGI) performed better, with a 3% increase in value, while wines without PGI grew by 2.3%. Additionally, the "Other Wines" segment saw a 6.3% increase, reinforcing its significance in the market. Overall, all categories posted revenue growth, driven by inflationary trends and a greater emphasis on higher-value products.

In absolute terms, sales through retail and hospitality channels generated €3.18 billion, with an average price of €5.08 per liter, 2% higher than the previous period. However, when adjusting for inflation, the global average price saw a slight 0.4% decrease. This trend was particularly evident in PDO wines, which saw a 1.1% real-term price reduction, and sparkling wines, with a 0.4% decrease.

The Spanish wine market exhibits a mixed evolution, with moderate growth in both consumption and value, influenced by the dynamics of each sales channel and category. The expansion of the third channel and the prominence of higher-priced products stand out as key trends for the sector.