Modeling global wine markets to 2018: exchange rates, taste changes, and China's import growth

Kym Anderson, Glyn Wittwer

    Research output: Contribution to journalArticle

    Abstract

    In this paper, we use a revised, expanded, and updated version of a global model first developed by Wittwer et al. (2003) to project the wine markets of its 44 countries plus seven residual country groups to 2018. Because real exchange rate (RER) changes have played a key role in the fortunes of wine market participants in some countries in recent years, we use the model to analyze their impact, first retrospectively during 2007�11 and then prospectively during the period to 2018 under two alternative sets of RERs: no change, and a halfway return to 2009 rates. In both scenarios, we assume a return to the gradual trend toward premium wines and away from nonpremium wines. The other major development expected to affect the world�s wine trade is growth in China�s import demand. Alternative simulations provide a range of possibilities, but even the low-growth scenario suggests that China�s place in global wine markets is likely to become increasingly prominent.
    Original languageEnglish
    Pages (from-to)131-158
    JournalJournal of Wine Economics
    Volume8
    Issue number2
    DOIs
    Publication statusPublished - 2013

    Fingerprint Dive into the research topics of 'Modeling global wine markets to 2018: exchange rates, taste changes, and China's import growth'. Together they form a unique fingerprint.

    Cite this