German consumers are purchasing less wine in the face of a cost of living crisis, the German Wine Institute said on Monday.

The institute said that households bought 10% less wine over the past year. This lead to a decline in sales of 6.5%, according to the consumer research firm Nielsen IQ.

Wine consumed in restaurants or other establishments is not included in the figures.

German Wine Institute director Monika Reule said, "Due to the loss of purchasing power caused by the rise in the cost of living, household purchases have concentrated on products that are absolutely necessary."

Average price of wine rises 

The average retail price of German wines rose to €4.18 ($4.47) per liter in 2022, representing a rise of 26 cents or 6.6% compared to last year's prices.

Price increases were due to higher costs for glass, packaging, logistics and personnel.

Imported wines showed a much more modest price increase in 2022, with a rise of 7 cents bringing the average price to €3.64 per liter.

The quantity of domestic wine fell by 14%, and sales by 8%.

German wines lost 1% of their market share, dropping to 44%. Italian wines also lost 1% and Spanish wines gained 2%, landing at 12% and 14% market share respectively. French wines maintained the 11% share they had in 2021.

The German Wine Institute said organic wine represented an exception to the downward tendency.

White whine continues to be the most popular variety, with an unchanged volume share of 47%. The share of red wine declined from 41% to 40%, with rosé increasing from 12$ to 13%.

This report was written in part with material from DPA.

Edited by: Amanda Rivkin

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