Future Trends in the Wine Industry

Cause                                                                Reason

Wineries will migrate further away from the equator to higher latitudes - places like UK, NZ and Tasmania

Climate change is indicating that the earth is warming and grapes need a very specific temperature band to grow.

Wineries that cannot migrate further away from the equator will move to higher altitudes

Cooler at higher altitudes

Increasing reliance on technology for marketing and sales

The internet helps grapes and wine to be marketed to a larger amount of people.

Increasing use of GM vines

These are becoming more affordable and are improving their image. GM vines can yield more crops for less space as well as being suited to harsher conditions and withstanding stresses like disease.

Increasing innovation to drive costs down and improve products (like screw caps etc.)

These allow the wineries to operate on higher margins as well as providing consumers with cheaper alcohol - making them more competitive.  

Increase in international wine trade

Globalisation has resulted in greater transport and trade networks allowing wine to be sold all over the world.

Continuation of growing grapes to suit consumer preferences (e.g. Pinot Gris, organic)

Consumers are the ones who buy wine so need to suit their tastes.

Increasing mechanisation of viticulture

Labour is a large cost to wineries so mechanisation removes a large input cost.

Perhaps a migration to harder soiled vineyards

Mechanical harvesters require firm ground to operate on

Increasing frequency of grafting

Breeds resistance

Increasing usage of drip irrigation

Saves water

Increasing use of geospatial technologies

GIS are used in site selection, site monitoring and management and is becoming cheaper and easier for wineries to implement.

Increase of TNCs owning wineries

Already starting to happen, large brands are buying up smaller wineries as they can operate them with economies of scale.

Increasing reliance on wine tourism

Wine tourism helps wineries through cellar door sales as well as accommodation and other attractions.