Updated Oct 4, 2022 18:19

Spirits And Liqueurs Market in Italy

Market Overview
In , the Italian spirits and liqueurs market decreased by -% to $, falling for the second consecutive year after two years of growth. In general, consumption showed a mild downturn. Over the period under review, the market reached the peak level at $ in 2011; however, from 2012 to , consumption stood at a somewhat lower figure.

In value terms, spirits and liqueurs production rose markedly to $ in estimated in export price. Over the period under review, the total production indicated a pronounced increase from 2007 to : its value increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against 2019 indices. The pace of growth appeared the most rapid in 2011 when the production volume increased by % against the previous year. As a result, production attained the peak level of $. From 2012 to , production growth failed to regain momentum.


Consumption
In , consumption of spirits, liqueurs and other spirituous beverages decreased by -% to litres, falling for the third consecutive year after two years of growth. Over the period under review, consumption saw a mild downturn. Over the period under review, consumption reached the maximum volume at litres in 2008; however, from 2009 to , consumption remained at a lower figure.

The size of the spirits and liqueurs market in Italy fell modestly to $ in , dropping by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption showed a slight contraction. Over the period under review, the market hit record highs at $ in 2011; however, from 2012 to , consumption failed to regain momentum.


Market Forecast
Depressed by shrinking demand for spirits and liqueurs in Italy, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to litres by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Italy remains a net exporter of spirits and liqueurs; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of litres, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.