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Prosecco would perhaps never be able to beat Champagne in value due to substantially lower prices, but the volume gap seems to have been widened further in 2014 when Prosecco is expected to have grown at least 10% (our estimate). It inched past Champagne in 2013 by clocking 307 million bottles sale that overtook Champagne with 304 million. With the popularity of prosecco sky-rocketing, it may not be possible for Champagne to catch up with the lighter fingered Prosecco, at least in the foreseeable future.
It's been a taxing ride for global Champagne sales since the collapse of Lehman Brothers in 2008. But official figures indicate that the consumer demand has been more stable in the last three years. Worldwide Champagne sales had hit record high sales of almost 340 m bottles, in 2007 just prior to the financial crisis that hit the global markets. The demand dropped to less than 300 m in 2008 and 2009.
In 2007, there were frequent media reports about pending Champagne shortages, due to rising consumer demand. The Comité Champagne, known as CIVC earlier, even announced a plan to expand the region originally designated to produce more champagne; the new region was expected to be ready with the production starting 2015. Although a concern was expressed then by many experts that the increase would result in lowering of quality by certifying extra land, the Comite Champagne had not buckled.
But, last year the plans had been shelved quietly as it became apparent that the sales were not going to skyrocket in the near future. Perhaps one of the reasons was the prosecco producers copying their idea and enjoying the increased demand during recession when the champagne drinkers across the globe traded down and switched to Prosecco. The Consortium had visions of a golden period and to meet the racing demand, expanded the area of vines that was designated to produce Prosecco DOC, the most of which was selling as IGT earlier but with much less stellar reputation and much cheaper. They had even got the GI for Prosecco accepted in 2009.
A recent IWSR report made for Vinexpo 2015 showed volumes of sparkling wine consumed in the UK rising from 8.68 million cases in 2008 to 11.23 million cases last year. It is forecast to reach 11.56 million cases this year. Prosecco is driving growth however, with 2013 UK imports up 43%, while Champagne has declined in the same period. Although the net amounts are much lower, India has seen a similar success story for Prosecco during the last couple of years.
In the meantime, the stable growth means that Champagne houses and growers will be allowed to increase the amount of reserve wines this year from 400 kilos/hA to 500 kilos/hA in order to increase the volumes. This would mean volumes available for the 2014 harvest would equate to about 310 million bottles.
There was a time in 2007 when Champagne was unable to meet rising demand.
After the Lehman Bros. fiasco one saw a continuous slide and Champagne Losing Fizz in World.
With sales volume in 2014 to exceed 307 million bottles and touching €4.5 billion, this is the second best performance ever. With the Comité Champagne attributing the success to the dynamism of export markets, the glass for Champagne is at least half full.
More details in Decanter
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