german-post As competition abounds on the best deals for consumers across the food and drink sector, German consumers are no exception when looking for the best price points. However, new research from Mintel reveals that the wine segment may be one area consumers are looking to invest more in, as some 61% of German wine buyers say they are prepared to pay more for better quality still wine.

Furthermore, nearly a third (31%) say that they would be prepared to spend more on better quality wines if they understood more about them and over one in five (21%) say that they would be prepared to pay more for better quality private label wine. Just 24% of German consumers claim low price as a factor when purchasing wine.

Mintel’s research also reveals a shift in the average price of domestically-produced wine in the German grocery retail sector, where the average price paid for wine is still under €3 per litre. Although the biggest share of wine launches is still in the low and mid-range price segment, the share of German wine launches recorded by Mintel priced at €6 and above has almost doubled from 2013 to 2014, increasing from 9% in 2013 to 16% in 2014.

61% of German wine buyers say they are prepared to pay more for better quality still wine.

Katya Witham, Senior Food & Drink Analyst Germany at Mintel, said:

“The increase in new wine products at higher price points reflects a growing demand for authenticity and quality among German consumers, who are becoming more sceptical towards mass-produced food and drink. A growing number of consumers have upgraded their palates from inexpensive wines to better quality and higher priced ones. As German consumers keep trading up to higher priced wines, German winemakers would benefit from edging up the quality ladder and moving the regional origin to the centre of their marketing strategy. In addition, the recent surge in popularity of Riesling among wine lovers outside Germany, and in particular in the US and the UK, opens up export opportunities, especially in the premium segment.”

While it is German consumers aged 25-34 who demonstrate strongest preference towards higher quality wines and being willing to pay more for them, followed by those aged over 55 – younger consumers are not far behind. Mintel’s research reveals that over half (53%) of German consumers aged 16-24 also claim that they would pay more for better quality still wine.

“Although the German wine market is price sensitive due to the strong presence of discounters, young German wine drinkers are increasingly up-trading to higher end buys, which is a positive sign for the German wine industry. With this in mind, it is vital for the wine suppliers to develop an understanding of what influences young consumers in their wine choice and what might encourage them to trade up.” Katya continues.

At home with a partner, friends or family and with a meal top the list of places German consumers drink wine – with 42% claiming these aspects respectively, followed by relaxing at home (38%), at a party (24%) and at an outdoor social event (19%).

Meanwhile, Mintel’s research reveals red wine is the most popular type of wine for German consumers, with 46% claiming to have purchased this type in 2014, compared to 39% for white wine and 18% for Rose. In addition, there may be growing traction for other types of wine too, as 7% claimed to have purchased organic wine and 4% non-alcoholic.

Press review copies of the research and interviews with Senior Food & Drink Analyst, Katya Witham, are available on request from the press office. 

 

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