UK wine market set to improve
Rabobank has published a new report looking at the global wine industry as of the end of 2013, and forecasting remaining challenges for the industry globally but a more optimistic outlook for the UK wine sector.
In the report, published by the bank's Food & Agribusiness Research and Advisory group, Rabobank says that the miserable economic environment in the key UK market has left the world's winemakers with little reason for optimism in recent years, as falling real-wage growth has driven down consumption. However, Rabobank said the UK's improving economic fundamentals, combined with recovery in the global harvest, should provide some relief in 2014.
"Improving economic fundamentals should begin to provide more support to wine consumption in the UK," commented Rabobank analyst Marc Soccio. "However, old pressures remain as suppliers continue to deal with rising excise tax rates and a concentrated retail grocery sector."
UK wine drinkers have become more experimental in their habits, following the downturn. Consumption continues to shift into the home and is increasingly occurring alongside food. Traditional pub formats continue to flounder in favour of more contemporary outlets.