IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/3169.html
   My bibliography  Save this paper

Globalization of the Worlds Wine Markets

Author

Listed:
  • Anderson, Kym
  • Norman, David

Abstract

Globalization is not new to the world?s wine markets, but its influence over the past decade or so has increased dramatically. This Paper reviews the effects of that on both the Old World and New World. In focusing retrospectively on the period since the late 1980s, it points to the dramatic increase in the industry?s export orientation and quality upgrading in the New World and the consequent competitive pressure on the Old World in key import markets. Looking forward, the Paper draws on a new model of the world?s wine markets that distinguishes non-premium, commercial premium and super-plus premium wines in each of 47 countries or country groups spanning the world. It projects recent developments to 2005, based on income, population and taste trends on the demand side and vine acreage and productivity trends on the supply side of each market. The effect of a slowdown in the global economy in the medium term is also considered. The results expose numerous implications of recent and prospective developments on key wine-exporting regions.

Suggested Citation

  • Anderson, Kym & Norman, David, 2002. "Globalization of the Worlds Wine Markets," CEPR Discussion Papers 3169, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3169
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP3169
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hertel, Thomas W. & Mark Horridge, J. & Pearson, K. R., 1992. "Mending the family tree a reconciliation of the linearization and levels schools of AGE modelling," Economic Modelling, Elsevier, vol. 9(4), pages 385-407, October.
    2. Hertel, Thomas W. & Kym Anderson & Joseph Francois & Will Martin, 2002. "Agriculture and Non-Agricultural Liberalization in the Millennium Round," GTAP Working Papers 235, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Noev, Nivelin & Swinnen, Johan F.M., 2001. "The Transition Of The Wine Industry, Policy And Trade In Eastern Europe And The Former Soviet Union," PRG Working Papers 31871, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    4. Nivelin Noev & Johan F.M. Swinnen, 2004. "Eastern Europe and the Former Soviet Union," Chapters, in: Kym Anderson (ed.), The World's Wine Markets, chapter 9, Edward Elgar Publishing.
    5. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer;Society for Computational Economics, vol. 9(2), pages 83-127, May.
    6. Arndt, Channing, 1996. "An Introduction To Systematic Sensitivity Analysis Via Gaussian Quadrature," Technical Papers 28709, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125877, Australian Agricultural and Resource Economics Society.
    8. Günter Schamel & Kym Anderson, 2019. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 10, pages 225-253, World Scientific Publishing Co. Pte. Ltd..
    9. Berger, Nicholas & Anderson, Kym, 1999. "Consumer And Import Taxes In The World Wine Market: Australia In International Perspective," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123770, Australian Agricultural and Resource Economics Society.
    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. Elisa Giuliani & Martin Bell, 2004. "When Micro Shapes the Meso: Learning Networks in a Chilean Wine Cluster," SPRU Working Paper Series 115, SPRU - Science Policy Research Unit, University of Sussex Business School.
    2. Pomarici, Eugenio & Caracciolo, Francesco & Cembalo, Luigi, 2012. "Price Heterogeneity and Vine Homogeneity: An Ordered Logit Hedonic Price Estimation," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144957, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Claudiu Tiberiu Albulescu, 2020. "Investment Behaviour and Firms’ Financial Performance: A Comparative Analysis Using Firm-Level Data from the Wine Industry," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 9(1), pages 75-94.
    4. Yui-Yip Lau & Adolf Ky Ng & David Guerrero, 2014. "Becoming a major hub in the distribution of wine: Hong Kong as a gate to Asian markets," Post-Print hal-01069882, HAL.
    5. Curzi, Daniele & Pacca, Lucia, 2014. "Estimating Food Quality from Trade Data: An Empirical Assessment," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173106, Italian Association of Agricultural and Applied Economics (AIEAA).
    6. Werdelmann, Thomas, 2014. "Quality and Value Creation on the Premium Wine Market," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 3, pages 47-72.
    7. Elisa Giuliani & Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Why Do Researchers Collaborate with Industry? An analysis of the wine sector in Chile, South Africa and Italy," KITeS Working Papers 217, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised May 2008.
    8. Jacques Calvet, 2005. "Les clusters vitivinicoles français à AOC. Une analyse en termes de biens clubs," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(4), pages 481-506.
    9. Rickard, Bradley J. & Gergaud, Olivier & Ho, Shuay-Tsyr & Hu, Wenjing, 2014. "Trade Liberalization In The Presence Of Domestic Regulations: Impacts Of The Proposed Eu-U.S. Free Trade Agreement On Wine Markets," Working Papers 190670, American Association of Wine Economists.
    10. Cervera Ferrer, Francesc J. & Compés López, Raúl, 2018. "The performance of Spanish wine exports in international markets," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    11. Visser, Evert-Jan, 2004. "¿A Chilean wine cluster? governance and upgrading in the phase of internationalization," Desarrollo Productivo 4549, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Wittwer, Glyn & Rothfield, Jeremy, 2005. "Projecting the world wine market from 2003 to 2010," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    13. Elissaveta Zaharieva & Matthew Gorton & John Lingard, 2004. "An evaluation of marketing practices and market orientation in the Bulgarian wine industry," Post-Communist Economies, Taylor & Francis Journals, vol. 16(2), pages 229-243.
    14. Kym Anderson & Joseph Francois & Douglas Nelson & Glyn Wittwer, 2019. "Intra-Industry Trade in a Rapidly Globalizing Industry: The Case of Wine," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 4, pages 91-113, World Scientific Publishing Co. Pte. Ltd..
    15. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    16. Glyn Wittwer, 2008. "Will drought erode the competitiveness of Australia's wine industry?," Centre of Policy Studies/IMPACT Centre Working Papers g-173, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. Xiong, Bo & Beghin, John C. & Marette, Stephan, 2013. "Gains to French champagne makers from tariff liberalization," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150003, Agricultural and Applied Economics Association.
    18. Giuliani, Elisa & Morrison, Andrea & Pietrobelli, Carlo & Rabellotti, Roberta, 2010. "Who are the researchers that are collaborating with industry? An analysis of the wine sectors in Chile, South Africa and Italy," Research Policy, Elsevier, vol. 39(6), pages 748-761, July.
    19. Bardaji, Isabel & Mili, Samir, 2009. "Prospective Trends in Wine Export Markets – Expert Views from Spain," 2009 Conference, August 16-22, 2009, Beijing, China 51084, International Association of Agricultural Economists.
    20. Mencet, M. Nisa & Firat, M. Ziya & Sayin, Cengiz, 2006. "Cointegration analysis of wine export prices for France, Greece and Turkey," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10104, European Association of Agricultural Economists.
    21. Parcero Osiris J. & Villanueva Emiliano, 2012. "The success of new exporting countries in a traditional Agri-business industry, 1961-2005," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-25, November.
    22. Zhao, Xueyan & Anderson, Kym & Wittwer, Glyn, 2002. "Who Gains from Australian Generic Wine R&D and Promotion?," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125627, Australian Agricultural and Resource Economics Society.
    23. Morrison, Andrea & Rabellotti, Roberta, 2017. "Gradual catch up and enduring leadership in the global wine industry," Research Policy, Elsevier, vol. 46(2), pages 417-430.
    24. Kleynhans, Theo E. & Opperman, J.M., 2005. "Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-15, December.
    25. Curzi, Daniele & Pacca, Lucia, 2015. "Price, quality and trade costs in the food sector," Food Policy, Elsevier, vol. 55(C), pages 147-158.

    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. Glyn Wittwer & Nick Berger & Kym Anderson, 2019. "A Model of the World’s Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 1, pages 3-26, World Scientific Publishing Co. Pte. Ltd..
    2. Wittwer, Glyn & Berger, Nicholas & Anderson, Kym, 2001. "Modelling the World Wine Market to 2005: Impacts of Structural and Policy Changes," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 171982, Australian Agricultural and Resource Economics Society.
    3. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. YOO, Veronica & FLORKOWSKI, Wojciech J. & CAREW, Richard, 2015. "Pricing Attributes Of Wines From Emerging Suppliers On The British Columbia Market," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(2), pages 1-12, October.
    5. Hugh Arce & Christopher Taylor, 1997. "The effects of changing U.S. MFN status for China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(4), pages 737-753, December.
    6. Anderson, Kym, 2001. "Where In The World Is The Wine Industry Going?," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125531, Australian Agricultural and Resource Economics Society.
    7. Kleynhans, Theo E. & Opperman, J.M., 2005. "Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-15, December.
    8. Jean Philippe Perrouty & François d'Hauteville & Larry Lockshin, 2006. "The influence of wine attributes on region of origin equity: An analysis of the moderating effect of consumer's perceived expertise," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 323-341.
    9. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 5: Relative Returns to Australian Wool Producers of On- and Off-Farm Research," Economics Discussion / Working Papers 06-23, The University of Western Australia, Department of Economics.
    10. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 3: A Model of the World Wool Market," Economics Discussion / Working Papers 06-21, The University of Western Australia, Department of Economics.
    11. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    12. Arief Anshory Yusuf, 2008. "INDONESIA-E3: An Indonesian Applied General Equilibrium Model for Analyzing the Economy, Equity, and the Environment," Working Papers in Economics and Development Studies (WoPEDS) 200804, Department of Economics, Padjadjaran University, revised Sep 2008.
    13. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
    14. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    15. Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    16. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, University Library of Munich, Germany.
    17. Tetsuji Tanaka & Jin Guo & Naruto Hiyama & Baris Karapinar, 2022. "Optimality Between Time of Estimation and Reliability of Model Results in the Monte Carlo Method: A Case for a CGE Model," Computational Economics, Springer;Society for Computational Economics, vol. 59(1), pages 151-176, January.
    18. Verma, Monika & Hertel, Thomas W., 2009. "Commodity Price Volatility and Nutrition Vulnerability," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49344, Agricultural and Applied Economics Association.
    19. Peters, Glen, 2008. "Reassessing Carbon Leakage," Conference papers 331753, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2016. "Consumer’s comparison between local and imported organic products: a hedonic analysis of the Japanese table wine market," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 405-415, December.

    More about this item

    Keywords

    Wine trade; Globalization; Quality upgrading; Projection modelling;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cpr:ceprdp:3169. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.