Tag: Spain

Spain Moves Toward Smaller Vineyards and Premium Wines

Spain’s wine sector stands at a pivotal crossroads, preparing to undergo significant structural and strategic transformations over the next five years. According to the recently published report “Spanish Wine Market Forecasts 2025-2030: Strategic Analysis and Projections” by Vinetur on April 25,  the nation’s future in the global wine market will be shaped by a decisive shift towards smaller vineyard holdings, premiumization, and greater international competitiveness.

Spain, currently holding the title of the “world’s largest vineyard area” is expected to see a gradual contraction to approximately 900,000 hectares by 2030. This decline will primarily result from structural consolidation and the abandonment of less economically viable vineyards. Nevertheless, Spain will retain its leadership in vineyard surface area, albeit with a renewed focus on quality over quantity.

The report also highlights increasing production volatility caused by the impacts of climate change, including irregular harvests and variable yields. Despite these fluctuations, Spain’s annual wine production is projected to stabilize at an average of 31 million hectoliters. Wineries are proactively adapting by elevating product value, emphasizing quality improvements to boost average prices across both domestic and export markets.

Export forecasts remain particularly promising. Spanish wine exports are set to reach 21.2 million hectoliters by 2030, with a notable acceleration in value, surpassing €3.5 billion annually. This growth will be driven by strategic shifts toward bottled, organic, and sparkling wines, steering away from bulk wine exports. In a fiercely competitive landscape dominated by France and Italy, Spain’s focus on higher-value segments will be crucial.

Domestically, wine consumption trends present challenges. Household per capita consumption is projected to decline to 6.2 litres annually by 2030, reflecting an aging traditional consumer base and muted engagement from younger demographics. However, the Spanish domestic market’s overall value is forecasted to grow, underpinned by rising price points and a consumer migration toward mid-range and premium wines.

Emerging consumer preferences further illustrate a new market paradigm: the growing demand for organic wines, the surging popularity of low- and non-alcoholic offerings among urban consumers, and the ongoing shift toward e-commerce. Traditional retail channels are expected to lose market share as digital platforms gain traction.

Wine tourism emerges as another key growth pillar. An anticipated increase in winery visits and participation along Spain’s wine routes will diversify revenue streams and enhance brand loyalty, particularly benefiting small and medium-sized wineries that seek to foster deeper consumer connections.

Structurally, the number of active wineries is expected to decline modestly, stabilizing at around 3,780 by the end of the decade. This reflects an industry trend towards consolidation, where scale, operational efficiency, and investment capacity become critical factors for survival and success.

Climate change remains an existential challenge. Spanish viticulture will increasingly rely on sustainable practices, precision agriculture, heat- and drought-tolerant grape varieties, and the exploration of cooler sites at higher altitudes and latitudes to preserve wine quality and regional identity.

Ultimately, Spain’s wine sector is moving toward a lower-volume, higher-value model, prioritizing sustainability, quality, and terroir expression. How effectively the industry adapts to these economic, environmental, and consumer-driven challenges will define its global competitiveness and prestige in the decades ahead.

Source: https://www.vinetur.com

Duero Wine Fest 3rd Edition – Part 2

Juan García-Gallardo, Vice President of Junta de Castilla y León opened the Duero Wine Fest 3rd Edition this week in the beautiful Spanish Renaissance city of Salamanca.

He stated that wine is “one of the oils” of the economy of Castilla y León and the its importance.

“It is a fundamental part of the economy of Castilla y León, one of the oil and major sources of wealth, García-Gallardo states, highlighting that the turnover is almost one billion euros, provides 33,000 jobs, and contributes almost 4% of the Gross Domestic Product of Castilla y León.”

García-Gallardo also values the progress taken by the wineries from this region, highlighting that the Ribera del Duero denomination has overtaken Rioja. He further states: “We are going to continue supporting the 16 designations of origin so that they continue to grow in market share, so that they continue to have more facilities and so that they continue to conquer different markets.”

The Duero Wine Fest closed on Tuesday with over 400 attendees. Some key topics for the closing day included: the decline in wine consumption; the importance of the promotion of wine tourism, and the use of technology to reach consumers.

Wine tourism – Global Trends was the main topic of a presentation given by Gergely Szolnok, Professor of Market Research at Geisenheim University. He presented his studies which showed that 80 percent of tourists are not interested in visiting a winery, so wineries must “change their strategies and focus on that type of visitor, seeking to attract them.”

Some of the modifications he recommended include combining gastronomy with wine tourism, taking sustainability into account and adding more innovative aspects such as digital tours or facilitating access for caravan tourism, which is the new big thing!

He also highlighted the importance of the wineries themselves being well-managed, not only in their administrative, production, marketing or vineyard management, but also in terms of the clients and visitors they receive.

The importance of wine tourism was also discussed by Ignacio Gurría, who stated that wine tourism is “the spearhead of wine sales.” In his opinion, wine tourism can be an opportunity to improve consumption.

In his lecture, Impact of New Technologies on the Promotion and Marketing of Douro Wines, Ignacio Gurría, Executive Director of the working group of the Digitalisation and Wine Hub of the FEV (Digitalisation and Wine Markets),
shared his position on digitalization and wine markets and encouraged wineries to implement a digitalization strategy in their marketing program: “In technology you are never late, you arrive good or bad, that is the reality; it is not a question of time, but to do it well” he states.

For digitalization, he further urged wineries to have websites, to have their digital presence controlled, and he insisted on having good data: “Good data is valuable to the winery, which should be the objective.

The congress was promoted by the Department of Agriculture, Livestock and Rural Development of the Government of Castilla y León through the Agrarian Technological Institute, which has the objective is to position the Duero as one of the most important wine rivers in the world.

The main objective of the International “Duero Wine” Congress is to value the hydrographic basin of the Duero River as a unique territory, sustaining quality wines with different personalities, disparate flavors, to which are added the wines of Bierzo, endowed with its characteristic Atlantic nature, and the singularities of Sierra de Salamanca and Cebreros.

The Duero Wine Fest 2024 presentations can be seen on the congress’s YouTube channel:
https://www.youtube.com/@duerowinefest2024/videos

Announcing Liz Palmer is Guest Speaker at the 7th UNWTO Global Conference on Wine Tourism

I’m so thrilled to have been invited as a guest speaker at the upcoming 7th UNWTO Global Conference on Wine Tourism!!

The topics for the 7th Edition include “Inclusive, Sustainable and Digital Wine Tourism: Building Stronger Territorial Cohesion”

This yearly conference has become a leading international forum on trends, tools and opportunities to advance global wine tourism. It also provides opportunities for experts and professionals, as well as consolidated and emerging destinations in this tourism segment to exchange knowledge and experiences.

Since 2016, the Conference has highlighted the importance of wine tourism to the socio-economic development of destinations and has served as a platform to exchange experiences, identify good practices and promote wine tourism as a tool for sustainable development.

The 7th UNWTO Global Conference on Wine Tourism will be held November 22 – 24 in Logroño, Spain. Participants include government officials from international and national tourism administrations and organizations, regional and local authorities, international and national destination marketing organizations, UNWTO affiliate members, private sector representatives, wine estates, infrastructure providers and international academia.

I believe everyone in the wine tourism industry can certainly attest to Massimo Garavaglia, Italian Minister of Tourism, statement at last year’s conference, in Alba Italy: “Wine tourism is much more than just selling wine, which clearly is important.  When you sell a bottle of wine, you are selling the territory behind that bottle, the culture of that territory, the history of the men (and women) who designed these landscapes with the rows of vines.”

I have the extreme privilege of sharing insights on the topic of:

Unlocking the Benefits of Digitalization
Digital transformation can revolutionize and enhance wine tourism experiences, provide data and insights, optimize marketing strategies, and foster sustainable growth.

Conference Link: https://www.unwto.org/7-UNWTO-Global-Conference-Wine-Tourism

Hope to see you there!

Liz Palmer

 

Bodegas Familiares de Rioja leaves the Plenary Session of the Regulatory Council due to its strategic policy

The Rioja Family Winery Association withdraws from the management tables of the Denomination of Qualified Origin (DOCa) Rioja, the Plenary of the Regulatory Council, and the Interprofessional of Rioja Wine, due to its disagreement with the strategic policy, which goes against the business model of the small and medium-sized wineries.

The announcement was made public this week by its President, Eduardo Hernáiz, in an information conference, together with his Vice President and spokesperson on the Regulatory Council, Juan Carlos Sancha, and manager, Ana Jiménez, after the two assemblies of the association, which They have supported the decision, unanimously, they have indicated.

The group was established in 1991 by twenty winegrowers and small wineries in Rioja and currently has almost 70 members with 216 which are accredited in the management bodies of the Denomination of the Interprofessional and Regulatory Council tables.

This representation translates into over half of the total of the commercial branch in both management bodies. Still, its participation is limited to only 8% of this branch and 4% of the votes, as the system of representativeness of the Council.

The departure of this association from the management boards of the DOCa Rioja does not imply its abandonment of the Denomination, a region that is “the best in Spain for making wines of value and quality”, which, from its point of view, has currently lost, where volume is what prevails, the President stated.

The decision was formally communicated this week to the Rioja Wine Interprofessional Regulatory Council, the autonomous governments of La Rioja, the Basque Country and Navarra, as it is a Denomination shared by the three communities, and to the Ministry of Agriculture, as the guardian administration.

“We are Rioja, and we are going to continue being so because we have all our investments in this land and because we continue to believe in it and in its potential to make great wines,” assured the President of the Association.

However, “we do not have the capacity to redirect Rioja’s course towards a model of value, of quality”, which focuses on “sustainable viticulture and the production of quality artisanal wines”, he said.

“We are convinced – he added – that the current situation of Rioja, its wineries and winegrowers, would be very different if the policy followed in recent years had been more concerned with protecting the value of the grapes, the wines and the territory, than to produce more grapes and wine to bring Rioja to its current situation.”

Currently, the DOCa Rioja is going through “one of the biggest surplus crises in its history, sending wines to distillation,” said Hernáiz, who added that, “despite the fact that we have been producing clearly more grapes than we are capable of since 2017 to sell, large companies continued asking for new plantations until very recently.”

For his part, Sancha, one of the oldest members of the Plenary Council, has said that the historical model of the social distribution of the vineyard and wealth is being broken in favor of industrial companies, for which the bills continue to come out, among other aspects, because they sell wines from numerous sources, not only Rioja, as well as liqueurs and spirits.

“We find ourselves unable to change a business model that we do not share, since it is based on the production of wine for food shelves at prices with which small and medium-sized wineries cannot compete,” Sancha states.

The president of the Regulatory Council, Fernando Ezquerro, has conveyed to the association his interest in changing the representation system, but there is no concrete proposal and until there is a modification, which will have to be in the next elections in 2025, Bodegas Familiares will not participate in the decisions of these management bodies.

Source: https://agroinformacion.com/

 

Jerez is Spain’s #1 Wine Tourism Destination

The latest report from La Asociación Española de Ciudades del Vino (ACEVIN) reveals that Marco de Jerez is the Spanish wine destination that has received the highest number of visitors in 2022.

Wine tourism in Spain experienced a post-Covid-19 pandemic boost in 2022, with the number of tourists travelling around the ‘wine routes’ of Spain reaching 2,487,255, 51.59% higher than that of 2021 (1,640,800), though the 2022 result was still only 80% of the last pre-pandemic figure.

Last year’s tourist visits to wineries and wine museums are believed to have generated €75,481,646 for the economy, 39% above the 2021 level, but still 12% short of the 2019 level.

Around 80%, were domestic travellers, though overall proportion of international visitors has increased year-on-year, from 15.14% to 20.4%.

The five wine routes that received the highest number of visitors were as follows (in descending order):

  • Marco de Jerez: 333,781
  • Rioja Alta: 313,974
  • Ribera del Duero: 281,918
  • Penedès: 262,693
  • Rioja Alavesa: 234,101

Given Andalusia’s warm weather, interesting history, and beautiful landscapes, combined with fortified Spanish wines, it makes sense that Sherry country would certainly appeal to travellers.

As far as the routes which attracted the highest percentage of international visitors, these include: Gran Canaria: 66.5%; Alicante: 41.5%; and Penedès: 38.5%.

The most popular time to travel to these regions was October, when many producers have finished their harvests, followed by August, when the beaches of the country’s Mediterranean coast are lined with overseas visitors.