Economics of Wine

Appears in

Oxford Companion to Wine

Oxford Companion to Wine

By Jancis Robinson

Published 2006

  • About

economics of wine is a field of study that aims to improve our understanding of what affects the demand for and supply of different types of wines and wine grapes, and thereby the prices, quantities, and qualities of wines sold in domestic markets and traded internationally. This area of study has grown considerably in recent years, for several reasons. One is the increasing globalization of wine. Another is that wine growers have shown, perhaps more clearly than any other farmers, the possibilities for adding value to their primary product, particularly by differentiating it according to its terroir or via marketing investments. Wine producers are increasingly investigating which specific attributes of wine appeal to consumers in order to better target their production and marketing efforts. Some producers also benefit from investment in wine. The demand for the best vintages of iconic wines as a way of storing wealth has grown along with affluence, including in newly wealthy countries such as China.