The wine market is still in difficulty. But during 2024 things are improving

The liveliness and growth rates of the Italian and foreign wine market of a few years ago are a dream. But today, despite many contingent difficulties, such as economic or structural ones, such as the change in the consumption model, with a decrease also linked to the growth of health-consciousness, things seem to be slowly improving as 2024 develops. This is stated in the half-yearly report of Masi Agricola, a company listed on Euronext Growth Milan and among the Italian leaders in the production of premium wines, like Amarone della Valpolicella, whose board of directors approved the consolidated results for the first half of 2024 which show revenues of 30.2 million euros (at -8.8% on the first half of 2023, but also at +1.5% compared to the first half of 2019 pre-Covid), and a good opening of orders for the second half of the year. Also thanks to a clear recovery in the second half of the year, at -1.2%, improving the progressive figure as of 30 June by 7 points after a first quarter of -15.7% compared to 2023.
According to Sandro Boscaini, president of Masi Agricola, therefore, what has passed is “a first half of 2024 in which we have seen the destocking effect attenuate, at least in the second part, which has strongly penalized both our revenues and those of the entire wine sector since last year. However, there remains a general slowdown in the consumption of premium wines in all markets. As far as we are concerned, we have continued to invest in product innovation, enriching the portfolio again this year, focusing on sparkling wines and rosés”.
According to Masi Agricola’s analysis, in the markets served, that is 140 countries around the world (with an export share of 68% of turnover, ed.), the generalized reduction in consumption “seems to derive from the reduction in consumers’ spending capacity, a following the impact of inflation on real incomes”. And again, “premium and ultrapremium wines are more penalized than those in the entry level segment”. Elements which on the one hand are worrying, on the other hand give hope that when the economy starts to grow again, as has always happened cyclically after periods of decline, wine consumption can also start to grow again.