In the first half of 2023, the United Kingdom witnessed a significant shift in its wine imports, recording a 7.4% decrease in volume, reaching 581.6 million litres. This volume represents the lowest historical level for this period of the year. This notable decline has occurred despite the imminent implementation of new import taxes on alcoholic beverages in the UK, which are due to come into force in August.
However, spending on wine imports saw a slight increase of 0.6%, exceeding £1.9 billion, with the average price continuing to rise in sterling terms. The decline was observed in all wine categories in terms of volume, but only bulk wine suffered a decrease in value, and it is the only category that decreased in price. Bottled wine is a prominent figure in purchases, and despite the decline in volume, both Italy and Australia have retained their positions as major suppliers. Spain and Portugal showed notable growth in value, with Spain expanding significantly among the top 10 suppliers.
New Zealand, as the only supplier from the New World, recorded positive growth. According to UK Customs data, the UK's 7.4% decline in wine import volumes in the first half of 2023 is accompanied by a slight increase in value of 0.6%, exceeding £1.9 billion, as the average price rose by 0.6%. 8.6% to £3.27 per litre.
This period is characterized by historically low volume, reflecting similar trends in 2021 and 2013. However, the value broke records for this time of year, surpassing the first half of 2022, which was exceptional in itself. The continuous rise in prices, especially since the approval of Britain's exit from the European Union, has become a distinctive feature.
Expect new import taxes
The decline in import volumes is occurring in the run-up to the introduction of new import taxes on alcoholic beverages in the UK, due to begin in August 2023. The trend in UK imports has deteriorated in the first half of 2023 compared to the end of 2022, a year that recorded a 1.6% decline. in volume and an increase of more than 20% in value.
Diverse performance across categories
Different wine categories performed differently. While the volume of all wines declined during the first half of 2023, only bulk wines, the only category whose prices fell in value, declined in value. Bottled wine leads UK imports with 284.3 million liters (-6.7%) and £1,212.6 million (+2.7%), accounting for 49% of volume and 64% of total value, and is gaining some share. Sparkling wine is the second most valuable wine in terms of value, closely followed by bulk wine. However, bulk wine is the second most purchased wine by volume, well ahead of sparkling wine, which suffered the largest decline.
Specific trends in pricing
Sparkling and bottled wine prices rose above average, while the price of bulk wine fell by 5.3% to £1.05 per litre. The report prepared by OeMv for the Interdisciplinary Organization for Wine in Spain also highlighted the best performance in the UK for bottled wine in terms of value (+3.6%) and volume (-0.3%), ending the quarter on £18.8m and £11.1m litres, with an average price of £1.68 per litre (+3.9%).
Detailed analysis of suppliers
The UK imported wine from 61 suppliers in the first half of 2023, but the top ten represent more than 97% of the total. Of these countries, only Australia recorded a significant decline (-20%), followed by slight declines in Chile and South Africa. Italy and Australia led the global decline in volume but continue as major suppliers, with France breaking the global decline and gaining share as a third supplier.
Spain achieved excellent growth of 11.7%, overtaking Chile as the fourth supplier. New Zealand grew by 10.4%, outpacing the United States, while Argentina also lost weight, underscoring the weakness of US wine imports into the UK in the first half. But Portugal gained importance.
Locations of value between countries
These positions vary in value, with France clearly leading as the top seller, followed by Italy. The average price of French wine is much higher than the rest of the wines, which explains its greater share in value. Spain and New Zealand grew at an excellent rate in terms of value, ranking third and fourth in terms of sellers. European sellers generally focus on sales of higher priced wines.
The decline in UK wine imports in the first half of 2023 provides insight into the trends, preferences and economic factors influencing the wine market. The simultaneous increase in spending, coupled with the anticipated implementation of new import taxes, represents a complex landscape that requires ongoing analysis and monitoring.
With the ongoing flux in the global economy and political landscape, such as Brexit, and shifts in consumer behaviour, the UK wine market continues to be a subject of intrigue and study.
