Wine Industry Experts Warn South Tyrol Faces Structural Shift as Global Market Transforms

Wine producers in South Tyrol are facing new challenges as global changes reshape the industry. At the 64th South Tyrolean Winegrowing Conference, held in Eppan and organized by the alumni association of agricultural schools, experts discussed how climate change, shifting consumer habits, rising costs, and a saturated global market are affecting wine production across Europe. The event focused on how these trends impact South Tyrol specifically and what strategies may be needed for the future.

Simone Loose, a professor at Geisenheim University and a leading expert in wine economics, delivered a keynote address that drew significant attention. She explained that the international wine industry is not experiencing a short-term crisis but rather a deep structural transformation. Factors driving this change include declining wine consumption in traditional markets, demographic shifts, higher production costs, increased international competition, and growing demands for digitalization and efficiency. Loose pointed out that Europe is particularly affected by structural surpluses of wine. At the same time, younger consumers are drinking less wine or are more selective in their choices.

Loose emphasized that simply producing good wine is no longer enough when consumer habits and target groups are changing. Wine must also be clearly positioned and marketed in an understandable way. She noted that regions with small-scale operations, high production costs, and long-term vineyard commitments—characteristics typical of South Tyrol—are especially vulnerable to these shifts.

Despite these challenges, Loose said South Tyrol is well positioned compared to other regions internationally. Strong cooperatives, a clear focus on origin, and high quality standards have made the region’s wine sector resilient so far. However, she stressed that future success will depend on how well production aligns with market demand. This includes understanding how much wine the market can absorb, which grape varieties remain popular, and how to retain existing customers while attracting new ones.

Loose also highlighted the importance of transparency and experience-based marketing efforts such as wine tourism and events. She called for more professional data collection and strategic planning within the industry. Decisions about planting new vineyards, making investments, or expanding production should be made with a broader economic perspective and based on realistic marketing opportunities.

The conference made it clear that South Tyrolean wine producers will need to adapt to ongoing changes in both local and global markets. The ability to respond flexibly to consumer trends and market conditions will be key for maintaining competitiveness in the years ahead.