Italian bulk wine prices are stable, whites are doing well. Tendency unknown for the 2024 harvest

The first grape bunches of the new, and eagerly awaited harvest have begun to be harvested. The global bulk market is on a “stable” trend, but there is a bit of concern for the future, due to Europe-China trade tensions, up to and including climatic scenarios, in Italy first and foremost, which ring of uncertainty. The Ciatti Company, one of the largest bulk wine brokers in the world, published its “Global Market Report” (July 2024), which WineNews analyzed. The report draws a picture of a sector where Chile and Spain are among the most active, at the market level. Their prices have increased in the past few months in response to their respective harvests, which were poorer than usual, while demand was better compared to the previous year. The generic white wine offer is rather limited, but it is the most requested product (as well as varietal whites). In California, increase in buyer requests has continued, that is, the trend to lower prices as the new harvest approaches, although only part of these requests have generated agreements.
The report has underlined the current vineyard situation, suggesting that harvests in California, France and Spain are remaining in line with their averages, while the only exception is Italy, due to a complicated climatic situation including too much rain in the North (increasing the risk of disease), contrasted to low rainfall in the South (where heat waves have been extreme). And, the scarce Italian harvest in 2023 actually led to “tightening” the market for generic white wines in Europe and the rest of the world. This phenomenon was, however, then exasperated by this year’s below-average harvests in Chile and South Africa. The result is that the current situation has been “created” by limited product supply rather than a concerted increase in demand on key markets.
The trade tensions between the European Union and China are worrying as well. The European duties imposed on Chinese electric cars have provoked a response from the “Dragon”, that has put meat and Cognac in its sights. And, therefore, the European wine industry is "fearful" of being next in line. It is important to point out that, according to OIV statistics (International Organization of Vine and Wine, ed.), wine imports to China have decreased for six consecutive years, and estimates have showed a reduction in consumption reduced from 17.6 million hectoliters in 2018, to 6.8 million hectoliters in 2023. Consequently, trade barriers are not a universal remedy in a period of market slowdown, especially for red wines.
Regarding Italy, the “Global Market Report” by the Ciatti Company has revealed clearly contrasting weather conditions. That is to say, persistent rains in the North, which raise concerns about diseases, while the extreme temperatures in the South (heat waves approaching 40 degrees Centigrade ), increase the prospect of complicated ripening, or damage to the vine. However, the current forecasts are that the harvest will be only slightly lower than average, and of course, the months of July and August will define the final result. The Italian bulk market is proceeding steadily, and prices are stable at a high level, especially for white wines. Some denominations are almost sold out, while Prosecco and Pinot Grigio bottlings were slightly down in June 2024 compared to June 2023. The sales trend is generally stable, though, and these wines continue to perform well on export markets.
At the end of May, Italian wine stocks counted about 8 million hectoliters fewer than in May 2023, meaning that suppliers at harvest time, will have room in the cellar, Ciatti pointed out. Some grape varieties are almost 100% depleted. Buyers are evaluating grape price quotes before submitting offers for bulk wine. The positive data, however, clashes with an air of pessimism felt concerning the financial health of the sector, and uncertainty about future sales and consumption.
According to the Ciatti Company report, as far as market prices are concerned , the white grape varieties are doing well. The generic whites range from 0.65 to 0.77 euros per liter, while the “organic” whites range from 0.80 to 0.95 euros per liter (all referring to the 2023 vintage). Pinot Grigio delle Venezie 2022 is stable (1.05 - 1.15 euros per liter), Pinot Grigio (2023) is growing, from 1.1 to 1.2 euros per liter. Prosecco DOC (2023) is stable, oscillating between 1.9 and 2 euros per liter, while Soave DOC 2022 ranges from 0.9 to 1 euro per liter. The red wine panorama is stable, though the trend is definitely towards growth. Generic reds range from 0.50 to 0.60 euros per liter (11-12 percent alcohol content) to 0.70 - 0.80 euros per liter at 13 percent alcohol content. Primitivo TGI Puglia/Salento is stable (0.95 - 1.25 euros per liter), Sangiovese, which comes from various TGIs (0.80 - 0.90 euros per liter), the same for Trebbiano TGI (0.70 - 0.85 euros per liter), and Chianti DOCG (1.70 - 1.80 euros per liter).