IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i1p224-d1037907.html
   My bibliography  Save this article

Long-Term Trends of Global Wine Market

Author

Listed:
  • Noa Ohana-Levi

    (Independent Researcher, Variability, Ashalim 85512, Israel)

  • Yishai Netzer

    (Chemical Engineering Department, Ariel University, Ariel 40700, Israel
    Eastern Regional R&D Center, Ariel 40700, Israel)

Abstract

The major factors of wine trade have been showing distinct patterns of temporal trends worldwide in past decades. Wine consumption, production, imports, and exports differ according to their location and classification to Old World and New World wine markets. Using datasets from various sources, this work focused on quantifying long-term trends (1995–2021) of these wine industry factors for each country, including long-term means and temporal trends, using the Mann-Kendall trend test, and resulting in Z-scores. The temporal relationships between these global factors were quantified by applying Pearson correlation to the original values, as well as by correlating the Z-scores. Our findings show that Old World wine consumers and producers (e.g., Spain, France, and Italy) have been experiencing gradual decreasing trends of wine consumption and production. In New World countries, some of the largest wine-consuming countries were found to have strong, significant increases in wine consumption and new wine production markets show rapid growth trends. About 80% of the countries demonstrated increasing trends of wine imports, signifying the impact of globalization on the wine market and the growing demand for foreign wine. Globally, consumption per capita was found to have significantly decreased. Wine production showed a strong, significant, and lagged dependence on wine consumption, which was also related to the temporal trends of wine imports and exports. The major forces driving the wine market are possibly economic growth and wider competition, with climate change acting as a disruptive force.

Suggested Citation

  • Noa Ohana-Levi & Yishai Netzer, 2023. "Long-Term Trends of Global Wine Market," Agriculture, MDPI, vol. 13(1), pages 1-26, January.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:1:p:224-:d:1037907
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/1/224/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/1/224/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kym Anderson & Glyn Wittwer, 2019. "Modeling Global Wine Markets to 2018: Exchange Rates, Taste Changes, and China’s Import Growth," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 3, pages 51-90, World Scientific Publishing Co. Pte. Ltd..
    2. Kym Anderson & Glyn Wittwer, 2019. "U.K. and Global Wine Markets by 2025, and Implications of Brexit," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 6, pages 131-146, World Scientific Publishing Co. Pte. Ltd..
    3. Labys, Walter C. & Cohen, Bruce C., 2006. "Trends versus cycles in global wine export shares," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 1-11, December.
    4. Adeline Alonso Ugaglia & Jean Marie Cardebat & Alessandro Corsi, 2019. "The Palgrave Handbook of Wine Industry Economics," Post-Print hal-03777417, HAL.
    5. James L. Seale & Mary A. Marchant & Alberto Basso, 2003. "Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 187-202.
    6. Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2018. "Wine Consumption in Norway: An Age-Period-Cohort Analysis," Journal of Wine Economics, Cambridge University Press, vol. 13(1), pages 41-56, February.
    7. Cardebat, Jean-Marie & Figuet, Jean-Marc, 2019. "The Impact of Exchange Rates on French Wine Exports," Journal of Wine Economics, Cambridge University Press, vol. 14(1), pages 71-89, February.
    8. Michael Thorpe, 2009. "The globalisation of the wine industry: new world, old world and China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(3), pages 301-313, May.
    9. Walter C. Labys & Bruce C. Cohen, 2006. "Trends versus cycles in global wine export shares," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 527-537, December.
    10. Muhammad S. Ashraf & Ijaz Ahmad & Noor M. Khan & Fan Zhang & Ahmed Bilal & Jiali Guo, 2021. "Streamflow Variations in Monthly, Seasonal, Annual and Extreme Values Using Mann-Kendall, Spearmen’s Rho and Innovative Trend Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(1), pages 243-261, January.
    11. Adeline Alonso Ugaglia & Jean-Marie Cardebat & Alessandro Corsi (ed.), 2019. "The Palgrave Handbook of Wine Industry Economics," Springer Books, Springer, number 978-3-319-98633-3, March.
    12. Ashenfelter, Orley & Storchmann, Karl, 2016. "Climate Change and Wine: A Review of the Economic Implications," Journal of Wine Economics, Cambridge University Press, vol. 11(1), pages 105-138, May.
    13. Arahata, Katsumi, 2004. "The Wine Market In Japan: Market Competition Among Exporting Countries And The Strategy Of Us Wine," 2004 Annual meeting, August 1-4, Denver, CO 20296, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Ollat, Nathalie & Touzard, Jean-Marc & van Leeuwen, Cornelis, 2016. "Climate Change Impacts and Adaptations: New Challenges for the Wine Industry," Journal of Wine Economics, Cambridge University Press, vol. 11(1), pages 139-149, May.
    15. Riera, Félix Sebastián & Brümmer, Bernhard, 2022. "Environmental efficiency of wine grape production in Mendoza, Argentina," Agricultural Water Management, Elsevier, vol. 262(C).
    16. Kym Anderson, 2010. "The New World in Globalizing Wine Markets: Lessons from Australia," Wine Economics Research Centre Working Papers 2010-09, University of Adelaide, Wine Economics Research Centre.
    17. Danmeng Wang & Ruolan Li & Guoxi Gao & Nueryia Jiakula & Shynggys Toktarbek & Shilin Li & Ping Ma & Yongzhong Feng, 2022. "Impact of Climate Change on Food Security in Kazakhstan," Agriculture, MDPI, vol. 12(8), pages 1-13, July.
    18. Diks, Cees & Panchenko, Valentyn, 2006. "A new statistic and practical guidelines for nonparametric Granger causality testing," Journal of Economic Dynamics and Control, Elsevier, vol. 30(9-10), pages 1647-1669.
    19. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    20. Edward Oczkowski, 2014. "Modelling the Demand and Supply Determinants of Australian Wine Grapes," Economic Papers, The Economic Society of Australia, vol. 33(1), pages 1-12, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Athanasia Mavrommati & Alexandra Pliakoura, 2025. "Performance dynamics in Greek wine sector: a study of technical efficiency and strategic implications," Operational Research, Springer, vol. 25(1), pages 1-22, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Macedo, Anthony & Rebelo, João & Gouveia, Sofia, 2019. "Export propensity and intensity in the wine industry: a fractional econometric approach," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 8(3), December.
    2. Hachmi Ben Ameur & Eric Le Fur & Julien Pillot, 2023. "The Influence of Economic Policy Uncertainty and Business Cycles on Fine Wine Prices," Computational Economics, Springer;Society for Computational Economics, vol. 62(2), pages 589-608, August.
    3. Hachmi Ben Ameur & Zied Ftiti & Eric Le Fur, 2024. "What can we learn from the analysis of the fine wines market efficiency?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 703-718, January.
    4. Muhammad, Andrew & Leister, Amanda M. & McPhail, Lihong & Chen, Wei, 2014. "The evolution of foreign wine demand in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    5. ?ikolaos A. Kyriazis, 2021. "Impacts of Stock Indices, Oil, and Twitter Sentiment on Major Cryptocurrencies during the COVID-19 First Wave," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 133-146.
    6. Ren, Weijie & Li, Baisong & Han, Min, 2020. "A novel Granger causality method based on HSIC-Lasso for revealing nonlinear relationship between multivariate time series," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 541(C).
    7. Liow, Kim Hiang & Huang, Yuting, 2018. "The dynamics of volatility connectedness in international real estate investment trusts," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 55(C), pages 195-210.
    8. Jose Perez-Montiel & Carles Manera Erbina, 2019. "Investment Sustained by Consumption: A Linear and Nonlinear Time Series Analysis," Sustainability, MDPI, vol. 11(16), pages 1-15, August.
    9. Francis, Bill B. & Mougoué, Mbodja & Panchenko, Valentyn, 2010. "Is there a symmetric nonlinear causal relationship between large and small firms?," Journal of Empirical Finance, Elsevier, vol. 17(1), pages 23-38, January.
    10. Ahmed Ali & Granberg Mark & Troster Victor & Uddin Gazi Salah, 2022. "Asymmetric dynamics between uncertainty and unemployment flows in the United States," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 26(1), pages 155-172, February.
    11. Luigi Cembalo & Francesco Caracciolo & Eugenio Pomarici, 2014. "Drinking cheaply: the demand for basic wine in Italy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 374-391, July.
    12. Bonato, Matteo & Gupta, Rangan & Lau, Chi Keung Marco & Wang, Shixuan, 2020. "Moments-based spillovers across gold and oil markets," Energy Economics, Elsevier, vol. 89(C).
    13. Dutta, Anupam & Bouri, Elie & Roubaud, David, 2019. "Nonlinear relationships amongst the implied volatilities of crude oil and precious metals," Resources Policy, Elsevier, vol. 61(C), pages 473-478.
    14. Henryk Gurgul & Łukasz Lach & Roland Mestel, 2012. "The relationship between budgetary expenditure and economic growth in Poland," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(1), pages 161-182, March.
    15. Algirdas Justinas Staugaitis & Bernardas Vaznonis, 2022. "Short-Term Speculation Effects on Agricultural Commodity Returns and Volatility in the European Market Prior to and during the Pandemic," Agriculture, MDPI, vol. 12(5), pages 1-26, April.
    16. Gurgul, Henryk & Lach, Łukasz, 2011. "Causality analysis between public expenditure and economic growth of Polish economy in last decade," MPRA Paper 52281, University Library of Munich, Germany.
    17. Richard A. Ashley & Kwok Ping Tsang, 2014. "Credible Granger-Causality Inference with Modest Sample Lengths: A Cross-Sample Validation Approach," Econometrics, MDPI, vol. 2(1), pages 1-20, March.
    18. Gurgul, Henryk & Lach, Łukasz, 2012. "Technological progress and economic growth: evidence from Poland," MPRA Paper 52279, University Library of Munich, Germany.
    19. Costas Siriopoulos & Sophia Kassapi, 2019. "Is Education an Investment for the Future? The Impact of the Greek case on Economic Growth," Annals of Social Sciences & Management studies, Juniper Publishers Inc., vol. 3(5), pages 116-119, July.
    20. Neto, David, 2022. "Examining interconnectedness between media attention and cryptocurrency markets: A transfer entropy story," Economics Letters, Elsevier, vol. 214(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:13:y:2023:i:1:p:224-:d:1037907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.