Italian Wine Industry Faces Margin Squeeze
Mediobanca data show weaker sales, falling profits and rising oversupply risks across major producers.
2026-05-20
The Italian wine industry is facing tighter margins, weaker sales and a growing risk of oversupply, according to comments from Lamberto Frescobaldi, the president of Unione Italiana Vini, on Tuesday in Milan after the release of Mediobanca’s annual survey of the sector.
Frescobaldi said the data showed that a business once known for steady value creation now has to adapt to a different market, shaped by a structural decline in consumption and by geopolitical pressures that are affecting trade and demand. He said wineries need to become more managerial and more disciplined in how they produce and sell wine.
The Mediobanca study, which covered 255 major Italian wine companies with 2024 revenue above 20 million euros and combined sales of 12 billion euros, found that the industry’s net profit fell 7.5% in 2025, a sharper drop than the 2.8% decline in revenue. That gap points to pressure on margins and to a cost structure that is not adjusting quickly enough, Frescobaldi said.
The report also showed weaker operating performance across the sector. Ebitda fell 4.2%, Ebit dropped 9.5% and net income declined 7.5%. Exports, which account for about half of total revenue among the companies surveyed, were weaker than domestic sales. Foreign sales fell 3.4%, compared with a 2.2% decline in Italy.
UIV said the market is already reflecting those pressures in bulk wine prices. Its observatory found that prices for bulk wine in April averaged 1.30 euros per liter across major Dop and Igp denominations it tracks, down 7% from April 2025. The group said April prices have been falling since the start of the year and are now at their lowest levels since 2023. On the monitored sample, the overall value in April was close to a 10% decline.
Frescobaldi warned that high inventories and excess supply could lead to further price erosion, including for higher-quality wines. He called for lower yields and a broader effort to reduce production volumes as part of a sector-wide response to changing demand conditions.
