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The German Wine Market

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Germany is not only a wine producing country; it is also a great consumer of wine. With a consumption of 20’4 l per head (total 20 million Hl – 12% of the total world consumption) it ranks fourth behind France, 30 million Hl, USA, 29 millions de Hl and Italy with 23 million Hl. All figures refer to 2012.

When comparing wine consumption to that of other alcoholic beverages, over the last 15 years consumption has grown slowly but surely whilst that of spirits and beer has diminished over the same period.

Germany is the third largest importer of wine in the world and, as such, is a target for wine producers from all over the world. However, it is important to keep in mind that the market is saturated and it is not easy to enter this market. One must have a clear idea of the channels through which to market the wine and the target segment in the market. 

Spanish Wines In Germany

Spain is one of the largest producers of wine in the world and the country with most vineyards. 2010 was witness to a boom in Spanish exports and sales have been increasing since then to consolidate its position in the German market.

Just behind French and Italian wines, the Spanish offer is very much at the forefront of the German market. Relations between German importers and Spanish producers are at a high point at the moment.

Spain has found its niche in the German market by reason of its fame for an excellent relation between price and quality. Widely loved and appreciated wines are sold at bargain prices. The traditional exporters to Germany have know been joined by producers who used to concentrate on the home market, but who have seen the crisis whittle down their customer base and have turned to other countries to maintain sales.

According to figures published by the German Statistic Office, between the months of August 2013 and July 2014, the ranking for total imports from the leading wine producing countries was as follows: Italy 37%; Spain 22%; France 16’8%; South Africa 6%; Chile 4% and USA 3’7%.

Opportunities in the German Wine Market

It is a very open market, not only for produce from fellow members of the EU, but to other producers from all over the world. Germany is a market in which Spanish producers have great opportunities to increase their share of the market for the following reasons, amongst others:

  • The very positive image of Spanish wines.
  • Spain can offer not only large volumes, but very high quality wine.
  • Spanish wines are ideal for German cuisine.
  • Potential for growth in zones that are still relatively untouched by Spanish exporters.

The German Market is immersed in a process of concentration of both distribution and purchasing,, but with potential still in traditional channels and the newly formed groups. A few cases, by no means all, would be:

  • Explore the potential for on-line sales.
  • Look for opportunities in traditional channels of distribution.
  • Taking advantage of the excellent price/quality factor and the German method for calculating prices in the gastronomic sector, increase presence in the gastronomy/gourmet sector.
  • Become a key-supplier for the traditional distribution channels.
  • Cover those areas in which the offer does not cover the current or future demand.