Sri Lanka: Wine Market 2024

Wine Market Size in Sri Lanka

The Sri Lankan wine market shrank to $X in 2021, declining by -7.8% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated temperate growth from 2012 to 2021: its value increased at an average annual rate of +3.2% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +1.5% against 2019 indices. Wine consumption peaked at $X in 2018; however, from 2019 to 2021, consumption stood at a somewhat lower figure.

Wine Exports

Exports from Sri Lanka

Wine exports from Sri Lanka soared to X litres in 2021, rising by 312% compared with the year before. In general, exports showed a measured increase. The exports peaked at X litres in 2019; however, from 2020 to 2021, the exports failed to regain momentum.

In value terms, wine exports surged to $X in 2021. Overall, exports posted a tangible expansion. Over the period under review, the exports reached the maximum at $X in 2019; however, from 2020 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Maldives (X litres), India (X litres) and the Czech Republic (X litres) were the main destinations of wine exports from Sri Lanka, together comprising 96% of total exports. The UK and the United Arab Emirates lagged somewhat behind, together accounting for a further 1.9%.

From 2012 to 2021, the biggest increases were recorded for the UK (with a CAGR of +22.2%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for wine exported from Sri Lanka were India ($X), Maldives ($X) and the UK ($X), together accounting for 93% of total exports.

The UK, with a CAGR of +21.1%, saw the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2021, the average wine export price amounted to $X per litre, declining by -25.2% against the previous year. Overall, the export price, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2016 an increase of 69%. As a result, the export price reached the peak level of $X per litre. From 2017 to 2021, the average export prices remained at a lower figure.

There were significant differences in the average prices for the major export markets. In 2021, amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per litre), while the average price for exports to the Czech Republic ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+30.5%), while the prices for the other major destinations experienced more modest paces of growth.

Wine Imports

Imports into Sri Lanka

In 2021, purchases abroad of wine decreased by -0.7% to X litres, falling for the third year in a row after four years of growth. Overall, total imports indicated a perceptible increase from 2012 to 2021: its volume increased at an average annual rate of +2.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports decreased by -34.0% against 2018 indices. The most prominent rate of growth was recorded in 2013 with an increase of 49% against the previous year. Over the period under review, imports hit record highs at X litres in 2018; however, from 2019 to 2021, imports stood at a somewhat lower figure.

In value terms, wine imports expanded sharply to $X in 2021. In general, total imports indicated a pronounced increase from 2012 to 2021: its value increased at an average annual rate of +3.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2018 when imports increased by 42% against the previous year. As a result, imports reached the peak of $X. From 2019 to 2021, the growth of imports failed to regain momentum.

Imports by Country

Chile (X litres), South Africa (X litres) and the United Arab Emirates (X litres) were the main suppliers of wine imports to Sri Lanka, together accounting for 37% of total imports. These countries were followed by Spain, France, Australia, Italy and the United States, which together accounted for a further 33%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Spain (with a CAGR of +23.7%), while imports for the other leaders experienced more modest paces of growth.

In value terms, France ($X), the United Arab Emirates ($X) and Chile ($X) appeared to be the largest wine suppliers to Sri Lanka, with a combined 35% share of total imports. These countries were followed by Italy, South Africa, Australia, Spain and the United States, which together accounted for a further 27%.

Spain, with a CAGR of +22.4%, recorded the highest growth rate of the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average wine import price stood at $X per litre in 2021, increasing by 6.9% against the previous year. In general, the import price saw a slight increase. The pace of growth was the most pronounced in 2014 an increase of 22% against the previous year. Over the period under review, average import prices attained the maximum in 2021 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was France ($X per litre), while the price for Spain ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United States (+6.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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