Wine international market structure and competitiveness

Abstract

Purpose This paper aims to analyse the wine market in relation to international competitiveness and international market structure. Design/methodology/approach To describe the international market structure, this paper uses Herfindahl–Hirschman Index and Net Export Index to measure export competitiveness revealed symmetric comparative advantage (RSCA). Finally, survival function analyses were developed using the Kaplan–Meier product-limit estimator to characterise the stability and duration of the competitiveness in the international wine market of each country and after they were grouped into Old and New World wine-exporting countries, and Wilcoxon and the Log-rank tests were used to compare the survivor functions. Findings The findings have revealed that the import market structure has remained unconcentrated, whereas the export market structure is moderately concentrated. Concerning trade characteristics, France, Italy, Spain, Australia, Chile, New Zealand, Portugal, Argentina, South Africa and Georgia are exporters. Austria is a trader (re-exporter), and the USA, Germany, the UK and the Netherlands are importers with strong domestic consumption. Regarding the RSCA, the New and Old World wine-exporting countries have high scores, specifically France, Italy, Spain, Australia, Chile, New Zealand, Portugal, Argentina, South Africa and Georgia. However, the advantages have weakened for most of the countries analysed. Only a few Old World wine-exporting counties (France, Italy, Spain, Portugal and Georgia) have demonstrated stable comparative advantages over time. However, when grouped into Old World and New World, their survivor functions present little statistical differentiation during the period. Originality/value The originality of the paper is that it applies the industrial organisation and comparative advantage approaches to the wine international market, highlighting the top global players. The paper also makes valuable contributions to the wine literature by analysing the duration and stability of comparative advantage in the worldwide wine trade at a country level and comparing them grouped into Old and New World wine-exporting countries.

Understanding Factors Associated with Interest in Sustainability-Certified Wine among American and Italian Consumers

“…Italian wine consumers have also shown a rising interest in sustainably produced wine [8]. The comparison between the US and Italy, representing new world and traditional world wine countries, respectively, has been a subject of numerous research studies exploring consumer behaviour [9], market trends [10,11], and business strategies [12]. Recent studies have delved into topics such as premium pricing for organic wine [13], Italian consumers' sustainable-labelled wines, highlighting the diverse range of preferences within wine consumer populations [25,36].…”