Structural features of the Italian wine industry

The wine supply chain represents a sizeable share of the Italian agro-food economy, especially as regards exports, and viticulture still characterizes Italian rural landscapes. The operators involved in the various phases differ in number, size, and production functions (grape-growing, crushing, bottling, shipping). Small and medium-sized family wine farms coexist with cooperatives and big industrial producers, but overall the sector is highly fragmented. The degree of concentration of the industry is low, notwithstanding the role of some big firms (especially cooperatives and industrial companies) that operate in different segments of the domestic and foreign markets. In the domestic market, the distribution is dominated by large-scale retail channels (especially for less expensive wines), followed at a distance by small retail and direct sales. the distribution is almost equally shared among direct sales, large retail and small retail & HO.RE.CA. channels . Marketing strategies and segments are quite different among individual firms, both in Italy and abroad. The majority of wines have a designation (PDO, PGI), and the share of generic wines is decreasing. Appellations are more important than brands for Italian consumers, while abroad brands can be important references, especially for super premium and icon wines.