An Italian Perspectives on the Wine Market Crisis

Despite the fact that global consumption today is higher than it was in the mid-1990s, it has remained stagnant since 2010, coinciding with the Great Financial Crisis, and then recently declined further. From an Italian perspective, it is critical to understand the reasons that have influenced demand, what the threats and opportunities are, and when and how the wine market will rise again as the cycle recovers. This study describes the recent dynamics of the Italian wine system's supply and demand and highlights the system's critical issues also in relation to the latest changes in the international wine markets. It also discusses some possible public economic policy interventions to stimulate recovery and effective actions that the Italian wine industry could implement to respond to the contraction of demand and the reduction of contribution margins on sales.