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Europe is the house of wine: it is the biggest vineyard of the world, it produces two thirds of the global wine and with 35% of the total world sales value sold in the EU, it remains also the main consumption market.

Nobody would doubt that wine represents a key reference of European gastronomy and culture, but do we know exactly which is the real impact that wine production has on the EU?

To respond to this question and to put some figures behind this (correct) perception, PwC has carried out an exclusive study to quantify the complete socio-economic and environmental contribution of the wine sector to the European Union. This study reveals the impressive positive macro-economic figures of the EU wine sector.

With a market value of €100 billion, wine remains an example of a complex but balanced supply chain, where each one of the 3 activities involved – viti-viniculture, winemaking and commercialization – participate almost equally to the process of value generation. When looking at the fiscal impact, wine’s total contribution amounted to nearly €52 billion in 2022, which is the equivalent to 0,7% of the EU’s general government expenditure. The main fiscal contributions are social contributions (57%) and personal income tax (22%) while VAT and special taxes only represent 9% and 5% respectively.

Infographic. Credit: CEEV

EU wine exports to non-EU countries accounted for €17.9 billion in 2022. These exports resulted in €15.9 billion positive trade balance for the EU which is the equivalent to 22% of the total EU trade surplus in food and beverages. Without wine, the trade deficit of the EU would be 3.7% higher. Wine is also a driver of innovation and contributed to maintaining over €1.1 billion of investment in R&D and innovation in the EU. For each €1 directly invested by the wine sector in R&D, a total amount of €7.5 of R&D to the entire EU’s economy is generated.

In 2022, all wine activities contributed €130 billion to the EU GDP (0.8% of the total EU GDP), with viti-viniculture activities representing 25% of this share. The total economic activity of the EU wine sector is equivalent to almost half (47%) of the total agriculture, forestry and fishing Gross Value Added inside the EU. In general, each €1 of direct GDP from the wine sector generates a total amount of €2.3 to the entire EU’s economy.

All of these activities are based on a complex supply chain composed at 99% by micro, small and medium size companies. This is particularly the case at the viti-vinicultural level with 2.2 million vineyard holdings in the EU, the vast majority of which being very small (83.3 % had less than 1 ha of vineyards).

Infographic. Credit: CEEV

But it is at social level that wine presents its impressive positive role. The EU wine sector is a hotbed of jobs, mainly in rural areas, and represents 1.4% of total EU employment. EU wine cultivates secured and sustainable jobs which also shows exceptional productivity, yielding higher added value per employee compared to similar activities at every stage of the value chain (+90% of productivity in agriculture, +16% in manufacturing and +5% in commercialization). This results in EU vineyards being more productive than the average farm and enhancing economic profitability in the rural areas. As an example, vineyards are 37% more profitable than other permanent crops.

With almost 3 million jobs, the wine sector plays a fundamental role in the socio-economic sustainability of rural areas of the EU. A blessing against rural depopulation. Indeed, the wine sector is a qualitative socio-economic anchor for rural areas of the EU. Wine regions with increased vineyard surface tend to experience a smaller population decline (close to none) while regions where vineyards are shrinking suffer a population decline 6.5 times greater.

On top of this rural contribution, the EU wine regions are part of our cultural heritage, promoting a deep sense of tradition and a connection to the land. It is not a surprise if 10 EU wine regions have UNESCO World Heritage Status. Thanks to the promotion of this cultural heritage, wine tourism has been emerging in the last few years, attracting 36 million visitors which have spent €1.1 billion in wineries and wine museums visits. A key economic catalyst in many rural regions, oenotourism has generated almost €15 billion in revenue.

Infographic. Credit: CEEV

On the environmental side, the report shows how the 3.2 million hectares of vineyards in the EU – an area slightly bigger than Belgium – contribute to the sustainability of the EU environment in many ways, such as increasing biodiversity, limiting soil erosion, improving water management and providing fire protection.

The overall balance of wine for EU society is impressive and clearly positive. But this success story remains delicate and needs to be supported by further adapting the complex legal framework that applies to wine, while preserving wine culture against those attacks that attempt to demonize it. Harming EU wine is damaging EU culture, EU society and the EU economy.

Source

https://www.brusselstimes.com/promoted/982770/wine-a-solid-pillar-of-the-eus-socio-economy-and-rural-development