Wine and globalisation: changes in the international market structure and the position of Italy

This paper aims to offer an insight into the fundamental structural changes that the wine sector world‐wide is undergoing as a result of globalisation and mounting international competition.

The most important recent trends in wine production, consumption and distribution are analysed and possible future scenarios for the wine industry outlined. The constraints and opportunities that wine operators are facing and are likely to face in the future are also examined, as is competition between Old World and New World producers. In this context, an analysis of the structure of the Italian wine industry serves to underscore the importance of the local factor and its link to quality as a competitiveness tool.

Globalisation has boosted competition between Old and New World producers. However, varying structures of production suggest the appropriateness of adopting competitive strategies shaped according to the varying relationship between different producers and their distribution (and especially major retail chain) networks, notably with respect to quality segments. For Old World producers a very important role will be played by product differentiation and the combination of tradition and innovation.

This paper examines the options open to such producers, notably in Italy where strategies adopted vary according to economies of scale.