The market share of German wines has fallen to 42% - a historic low that points to challenges that are becoming increasingly existential. Due to rising production costs and a change in consumer behaviour, consumers are increasingly turning to inexpensive wines from Italy, Spain and France - putting German wine in a difficult competitive position.[1]

Sharpincreases in production costs for energy, wages and materials are putting pressure on smaller businesses in particular. The higher prices often cannot be fully passed on to customers, which makes German wines appear more expensive than imports.[2] Sales of German wines fell by around 10%, while per capita wine consumption fell to 19.1 litres. With an average price of 4.51 euros per litre, German wines are above the general average (4.08 euros), which is driving many consumers towards cheaper options.[3]

However, the falling demand for alcohol is also causing problems for the industry. Younger generations in particular are consuming alcoholic beverages less frequently, which is putting pressure on the general wine market. The demand for non-alcoholic alternatives, on the other hand, is increasing, which is enabling some winegrowers to establish themselves as niche products, but is only partially stabilising the overall market. Climatic challenges are also shaping the picture, as the 2024 harvest will be around 10% below the ten-year average. It is expected to reach 7.9 million hectolitres. Late frosts, hail and heavy rainfall have led to significant yield losses in some regions, jeopardising the stability of production and making adaptation strategies necessary.[4]
 

Without targeted measures, the market share of German wines is likely to fall further, which will weaken demand for domestic products and could jeopardise the existence of many smaller wineries. This decline could also threaten the wine culture landscape as a whole, as economic instability and a lack of demand make it difficult for German wine culture to survive. Strategies to promote exports and adapt to climatic risks are crucial in order to secure German wine culture in the long term.
 

Other figures can be found here.


 

[1] Deutsches Weininstitut GmbH (2024): Deutscher Wein Statistik '23/'24. https://www.deutscheweine.de/fileadmin/DWI/News_Medien/Publikationen/Deutscher_Wein_Statistik/Statistik_2023-2024.pdf, retrieved on 30/10/2024.

[2] Gundlach, Alice (2024): Absatz sinkt weiter – vor allem von deutschen Weinen. Vinum – Magazin für Weinkultur. Published on 29 February 2024. https://www.vinum.eu/de/news/weinwirtschaft/2024/absatz-sinkt-weiter-vor-allem-von-deutschen-weinen/, retrieved on 30/10/2024.

[3] International Organisation of Vine and Wine (2024): State if the World Vine and Wine Sector in 2023. https://www.oiv.int/sites/default/files/2024-04/OIV_STATE_OF_THE_WORLD_VINE_AND_WINE_SECTOR_IN_2023.pdf, retrieved on 30/10/2024.

[4] Statistisches Bundesamt (2024): Weinernte 2024 voraussichtlich 4,9 % niedriger als im Vorjahr. Press Release 392 from 11 October 2024. https://www.destatis.de/DE/Presse/Pressemitteilungen/2024/10/PD24_392_412.html, retrieved on 30/10/2024.