Socio-Cultural Factors

Socio-cultural factors
  • The global pattern of wine consumption is changing per captia consumption is falling in the traditional wine consuming countries (France, Italy, Spain) while increasing countries such as the UK, US, Canada, Russia and Asia.
  • The increase in wine consumption has largely been at the expense of beer and spirits rather than a net increase in alcohol consumption/per person.
  • Level and rate of income growth
    - Rising incomes and changing preferences incourage depend in the UK and the US
    - Demand in Russia and China is driven by the mergants of the middle class, improving living standerds and rising disposable incomes and the gradual “Westernisation” of the lifestyle of younger consumers.
    - French Italian and Spanish consumers have cut wine consumption over several decades despite rising incomes.
    - In France annual per capita wine consumption has declines from 160 Litres in 1965 to 70L in 2005. The decline has been noticeable in the 19-24 year old age group. Proportion of this age group who are regular wine drinkers fell from 24% in 1980 to 4% in 2000.
  • The process of cultural convergence:
    - The process is of advances of global communication and trade.
    - Increasing globalised industry users advance marketing techniques to sell branded wine to a global market.
  • The age structure of the population:
    - Rates of wine consumption are highest in 35-65 years age group.
    - The number of younger people and proportion of people who drink wine are critical to the future of the industry.
    - This explains the difficulties being experienced in the traditional win markets where young people seem to have it preference for alternative alcoholic beverages.
  • Changing consumer tastes and life style expectations
    - Wien is increasingly being adopted as the most appropriate alcoholic beverage to drink at home and in restaurants.
    - Increase proportion of young couple without children are eating out more often and are spending more on wine.
  • Marketing and licensing laws:
    - In the UK the promotion of new world wines has seen a decline in sales of French and Italian wines and a growth in those in Australia, California and Chile.
    - Less stringent licensing laws, introduced in 2005, are expected to increase win sales through bars and restaurants.
  • Potential health benefits:
    - Increasing consumer interest in its potential health benefits has also driven growth in wine consumption.
    - Polyphenols occurring in red wine reduce the risk of heart disease, stroke and cancer, with possible beneficial effects for those suffering from muscular degeneration and Alzheimer’s disease.