12 Countries That Produce the Best Wine in the World
In this piece, we will take a look at the twelve countries that produce the best wine in the world. For more countries, take a look at 5 Countries That Produce the Best Wine in the World.
Wine is among the oldest drinks known to mankind, with the first use appearing as far back as 6,000 BC and having cultural significance in several countries all over the world. In the modern day world, it is also one of the largest industries, which was estimated to sit at a value of $489 billion in 2021 according to the research firm Acumen Research and Consulting. While a variety of industries such as the hospitality and manufacturing sector was severely impacted by the coronavirus pandemic, populations being forced indoors due to lockdowns led to a strong 22% growth in wine consumption during the pandemic.
Acumen Research estimates that the wine industry will grow at a compounded annual growth rate (CAGR) of 6.1% between 2022 and 2030 to sit at $825 billion at the end of the forecast period. It also believes that table wine will be the fastest growing segment and that Asia Pacific will be the fastest grower due to government interest in developing high income industries. For instance, wine has been a regular part of China's Five Year growth plans ever since the first plan was made. The inclusion is not a surprise, as the liquor industry is considered a high earning industry. Rare bottles of wine are sold at stunning prices, with the Romanée-Conti 1945 fetching collectors a whopping $558,000. Of course, an average bottle of wine costs much much less, with the St. Louis Federal Reserve listing down the price to $13.72 as of November 2022.
Just like other industries such as agriculture, the wine making sector is also embracing technology. These cover all aspects of the wine supply chain, starting from the cultivation process, extending to production, and encompassing delivery and customer experience. Wine companies use the Internet of Things (IoT) devices to keep track of their plant health, and regularly monitor soil conditions such as temperature and water levels. Sensors are also used to control and monitor the temperature of wine cellars, which is crucial for wine storage, particularly during the aging process.
Photo by Gio Bartlett on Unsplash
Additionally, companies such as Tactic are using augmented reality (AR) to enable the characters on their wine bottles 'speak' to the user when a smartphone is pointed at them - creating a rather novel customer experience likely to sit well with particularly the younger generations. Other advanced technologies that are being used include using satellites for crop imaging, robots for maintaining plantations, and artificial intelligence (AI) robots for matching the right wine with the right meal.
The biggest wine companies often end up earning revenues in billions of dollars. One of the largest wine companies in the world is Pernod Ricard SA (EPA:RI.PA), which earned a massive EUR8.8 billion in revenue in 2021. Other well known names in the wine and broader liquor industry are Brown-Forman Corporation (NYSE: BF-B), Diageo plc (NYSE: DEO), Constellation Brands, Inc. (NYSE: STZ) and China's COFCO Corporation.
We used data from the International Trade Center (ITC) to sift out the top wine making countries in the world. These were then complemented by the top wine making companies whose shares are listed on the stock markets.
Countries That Produce the Best Wine in the World
12. United Kingdom of Great Britain and Northern Ireland
Wine Exports as of 2021: $642 million
The United Kingdom of Great Britain and Northern Ireland is a European country with a wide variety of wine companies including one of the biggest alcohol firms in the world. Britain's Diageo plc (NYSE:DEO) has a market capitalization of $101 billion and it is responsible for producing some of the most well known brands in the world. These brands include Johnnie Walker, Guinness, Smirnoff, and Gordon's Gin. The company has a global presence, and it also has stakes in a Chinese company. Famous British wines from other companies include Chardonnay, Pinot noir, and Pinot blanc.
11. Republic of South Africa (RSA)
Wine Exports as of 2021: $750 million
The Republic of South Africa (RSA) is an African country that is one of the most developed nations on the continent. Due to its association with the Dutch East India Company, the country has been producing wine for centuries, with the first production dating back to the 1600s. Naturally, the Republic of South Africa (RSA) also has famous wineries on its soil. These include the Glenwood Vineyards, Stark Conde, Post House, and The Ahrens Family. However, these are not the only vineyards in the country, with South Africa having them in eleven different regions such as Durbanville, Tulbagh, Swartland, and Helderberg.
10. Argentine Republic
Wine Exports as of 2021: $853 million
The Argentine Republic is a South American country that is the second largest in the region. It is also one of the largest wine producing regions in the world, with the drink being introduced in the country by the Spanish Empire in the 1500s. Naturally, this also leads to a host of different wine companies that have set up their operations in the country. However, these do not have their shares up for trading on the Buenos Aires stock exchange. Some Argentinian wine making companies include BODEGA ALFREDO ROCA, Naiara Wines, Bodegas Lopez SA., and Finca La Amalia S.A.
9. Portuguese Republic
Wine Exports as of 2021: $1 billion
The Portuguese Republic, or simply Portugal, is a European country that is also one of the, if not the, oldest countries in the world since it has been inhabited since prehistoric times. Naturally, this also lends it a historic wine industry, which has been in business since 2,000 BC and grew during the Roman era. The Portuguese term for a vineyard is 'Quinta', and some top vineyards in the country are Quinta da Pacheca, Quinta da Aveleda, Adega Regional de Colares, and Quinta do Portal. The country divides its wines into three categories which range from strictly controlling the alcoholic content and the kinds of grapes used to the more relaxed table wine that is exclusive to the country.
8. Federal Republic of Germany
Wine Exports as of 2021: $1.17 billion
The Federal Republic of Germany is Europe's largest economy and a great power in modern day international politics. German wine dates back to the time of the Roman empire, and most of the wine making in the country is done around the river Rhine. In total, there are thirteen different wine making regions, with the largest being Rheinhessen. Due to its highly developed financial sector, there are dozens of wine companies that have listed their shares on the stock market. These include large multinationals which are not German firms, but some German wine stocks are Hawesko Holding SE (ETR:HAW.F), Schloss Wachenheim AG (ETR:SWA.F), and Berentzen-Gruppe Aktiengesellschaft (ETR:BEZ.F). However, the most notable names in the global industry that get the most limelight are Brown-Forman Corporation (NYSE:BF-B), Diageo plc (NYSE: DEO), Constellation Brands, Inc. (NYSE:STZ) and China's COFCO Corporation.
7. New Zealand
Wine Exports as of 2021: $1.36 billion
New Zealand is one of the largest island nations in the world and one that is also located in a remote part of the Southern hemisphere. It is also a heavy wine exporter, with the bulk of its local production dedicated to international consumption. New Zealand's wine growing regions are located all over the country, ranging from its Northern to its Southern halves. These provide growers with different climatic conditions for a variety of production, and the largest New Zealand wine region is Marlborough. These produce several kinds of wines, such as Pinot Noir, Bordeaux, and Sparkling Wine. Three New Zealand companies have listed their shares for trading on the New Zealand Stock Exchange. Out of these, Delegat Group Limited (NZE:DGL.NZ) is the largest with a NZD market capitalization of $1 billion. The other two are Foley Wines Limited (NZE:FWL.NZ) and Marlborough Wine Estates Group Limited (NZE:MWE.NZ).
6. United States of America
Wine Exports as of 2021: $1.45 billion
The United States of America is a North American country with the world's largest nominal economy and the only superpower status in global politics. The U.S.'s large land mass also allows wine makers plenty of land for plantation and cultivation. American wine traces its roots back to the 1500s, and due to the climatic requirements, most of the wine in the country is produced on the West Coast in the California region. Additionally, American wines are marked by a whopping 267 unique American Viticultural Area (AVA) tags, which list down the region in which the grapes for the wine were grown.
The size of its economy and the financial sector also provides the U.S. with alcohol firms that are worth millions of dollars. The largest American alcoholic beverages firm is Constellation Brands, Inc. (NYSE:STZ), and other large players are Vintage Wine Estates, Inc. (NASDAQ:VWE), Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), and Eastside Distilling, Inc. (NASDAQ:EAST). Out of these, Constellation Brands is naturally valued the most since it is not a dedicated wine making company. Others however are smaller players that focus exclusively on distilling or wine making.
As consumers begin to spend more on travelling and dining out, companies in the liquor industry like Brown-Forman Corporation (NYSE:BF-B), Diageo plc (NYSE: DEO), Constellation Brands, Inc. (NYSE:STZ) and China's COFCO Corporation are set to experience record profits in the long term.
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Disclosure: None. 12 Countries That Produce the Best Wine in the World is originally published on Insider Monkey.