Germany wine market: growth and opportunities

Germany wine market: growth and opportunities

Opportunities in the wine market in Germany

Wine. But not just any wine - Premium wine. And Germany is becoming a big market for this kind. Plus being a specialist retailer, players in this sector can look forward to booming retail business.

Premium wine

Premium wine is different from regular wine in terms of price and quality. It is usually the price that determines if the wine is premium or not, and in Germany, the wine is considered as a premium when the price exceeds €10.00.

Packaging wine

Premium wine is usually packaged in bottles colored to reduce the effect of UV light. Bag-in-boxes packaging is not usually opted for as it risks consumers interpreting it as low quality and another factor would be that wine won’t be able to mature in this type of packaging. Most bottles of premium wine are sealed with a cork and most of these bottles, especially in sparkling wine, need to be strong in order to withstand the amount of pressure CO2 is giving.

Legislative requirements

Always make it a point to check with the EU if your practices comply with their requirements in winemaking. Also, you need to comply with their regulation on Hygiene of foodstuffs (HACCP). It is imperative that only healthy grapes will be used and that contamination should be avoided at all costs. The retailer can benefit lower taxes by innovation through packaging leaning toward an environmental-friendly approach.

Labelling Wine

The label says it all and the EU has set specific rules on what to put on the label of the premium wine. Though legislation does not require putting down the blend composition, consumers would want to know that particular information. You can also elicit a positive effect if you mention the grape variety and vintage of the wine. In addition, mentioning ‘Reserve’ or ‘Grand Reserve’ can actually convince the consumer that the wine you sell is of high quality.

Non-legislative requirements

Reduce the level of sulfites and only add to maintain the quality of the wine. Chemical fertilizers should also be minimized as well. A good food system management is also recommended as buyers tend to be more confident with retailers who have one. And lastly, if you are into selling organic wine, make sure to mention wine more than telling everyone that it is organic. When selling, always provide a complete introduction to the company and its products and only send samples complete with labels, prices, and volume compositions.

Trade and macro-economic statistics

Import and export

Aside from being a producer of wine, Germany is also a country of importers and exporters of wine. It is very open to several countries when importing wine to its markets. At the same time, some of the wine exports are composed of domestically produced wine.

Production

Germany prides itself in a long history of winemaking. However, the domestic wine has lost a lot of its share due to instances of poor harvest.

Consumption

Germany also has its share of wine consumption so if you’re looking for Germans to distribute your wine, then it is highly advisable you educate them about your wine as well to convince them to market your products.

Market trends

Colour preferences of wine should also be taken into consideration. Premium white wine usually offers the best opportunities. Premium wine is also seldom packaged in a bag in boxes.

Market channels and segments

Specialist retailers dominate the market because people prefer to get premium wines from specialists rather than from other retail outlets with low market prices. Online sales also have a share of their success in the wine-selling trade. In addition, premium wine is also bought in organic retailers and consumers have made it a habit to check for quality in situations like this. Also, a new generation of wine consumers aged 22-25 focus more on quality than in price.

Market competitiveness

Based on market research, there is great fragmentation in the wine-selling market these days due to the consumers’ preference for traditional and domestic wine. The consumers also have no specific preference for brands. In addition, the market entry costs for wine is relatively high. All these are factors that may affect your wine start-up.

This entry in Europe was updated on August 3, 2017 by specialist.