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Home
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JWE-Articles
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Journal of Wine Economics Volume 16 | 2021 | No. 2
»
COVID-19 and Global Beverage Markets: Implications for Wine

COVID-19 and Global Beverage Markets: Implications for Wine

Glyn Wittwer & Kym Anderson
JEL Clasification: C63, D12, F14, F17, Q17
Pages: 117–130
Full Text PDF
Abstract

This article provides an empirical case study of the impacts of the COVID-19 pandemic on global beverage markets, particularly the wine sector. Both international trade and domestic sales have been adversely affected by temporary shifts away from on-premise sales by social distancing measures and self-isolation that led to the closure of restaurants, bars, and clubs, plus declines in international travel and tourism. Partly offsetting this has been a boost to off-premise and direct e-commerce sales. We first estimate those impacts in 2020 and their expected partial recovery in 2021 using a new model of global beverage markets. Further recent disruption to the global wine trade has been the imposition by China in late 2020 of prohibitive tariffs on its imports of bottled wine from Australia. Its diversionary and trade- reducing effects are compared with those due to COVID-19.

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