Definition: Belgium

Belgium is the fifth largest importer of wine in the world, purchasing nearly 5% of global wine imports.
Wine imports into Belgium by supplier country in 2001:
France                 70%
Italy                 8%
Portugal                5%
Spain 4%
Rest of the World    13%
Total                    2,700,000 hl
French wines are the leaders on the Belgian market, across all segments. They account for 75% of retail sales. In 2003, Belgium was the third largest export destination for French still wines, with a volume of 1.545 million hectoliters exported, representing a turnover of €420.5 million, according to Sopexa. However, they are beginning to lose market share to New World wines and those from Italy and Spain. Between 2002 and 2003, French still wines lost 59% in value and 5.7% in volume on the Belgian market. In contrast, New World wines almost doubled their market share during the same period, rising from 5% to 10%.
All origins combined, branded wines account for no more than 5% of the Belgian market. However, they have significant room for growth, particularly thanks to New World producers. Over the last four years, the top 10 New World wine brands have seen their sales increase by 66%.
According to the Port Wine Institute, between January and August 2003, Port exports to Belgium increased by more than 17% in volume and value compared to the same period last year. Belgium therefore remains the second largest export market for Port wines, after France.

Consumption:
Wine consumption in Belgium stood at around 24.06 liters per capita in 2001. The Belgian market is actually made up of two markets, one located in the south of the country and composed of a French-speaking community (the Walloons) and the other in the north, composed of Dutch speakers (the Flemish). While the Walloons (40% of the population) prefer French wines, they are consuming less and less wine. On the other hand, consumption is increasing among the Flemish (60% of the population). In addition, the purchasing power of this population is higher than that of the Walloons. Another difference is that the Flemish are very attracted to brands and wines from all over the world.
Despite the continued popularity of red wine, there has been a noticeable increase in the consumption of rosé in French-speaking regions. The return of white wine goes hand in hand with the growth in consumption in Dutch-speaking areas. The number of daily consumers is declining, while the number of regular consumers (at least once a week) is increasing. Wine has become a “pleasure” product, resulting in increased demand for wines from a wide variety of origins and an increasingly competitive market. Wine is mainly consumed with meals, although in Flanders it is becoming more popular outside of mealtimes. There are significant regional differences in consumption patterns, with consumption much higher in Wallonia, but it is Flanders that offers the greatest prospects for growth. In the medium term, a breakdown of 53% red, 35% white, and 12% rosé seems feasible.

Price range:
One-third of Belgian consumers now spend between €3 and €4 on a bottle of wine, and the growth of €5 wines is the most predictable. In 2002, the breakdown of wine purchases in Belgium by price was as follows:
wines under $5    74%
wines between $5 and $7    20%
wines over $7      6%
It is estimated that consumption in Belgium should grow by 5.9% by 2006.

Packaging:
The 75 cl bottle accounts for over 90% of sales volumes in the mid-range and high-end segments, where French VQPRDs account for the bulk of sales volumes. Alternative packaging is mainly found in the entry-level segment, and there has been a shift in their respective market shares, with a decline in sales volumes of large-format bottles and steady growth in bag-in-box sales.

Distribution networks:
Supermarkets dominate the wine distribution market, accounting for 64% of wine sales. The hotel and restaurant sector accounts for 25% of the market. In 2001, 85% of sales volumes were generated by general food retailers, and 65% by the four main supermarket chains, which dominate the hypermarket, supermarket, and hard discount segments: Carrefour (hyper/super), Delhaize Le Lion (supermarkets), Colruyt (soft discount supermarkets), ALDI (hard discount). The supermarket market accounts for around 200 million bottles:
hypermarkets/supermarkets - 1,430 stores - 145 million bottles
hard discounters - 460 - 40 million bottles
convenience stores/local stores - 20 million bottles.
Supermarkets use importers or import directly from producers themselves. Wholesalers (around 500 in Belgium) source their supplies directly from producers. There is a Belgian “tradition” of bulk imports, which was expected to decline in the coming years. This trend may be challenged by the new law on packaging contributions, which is due to come into force on April 1, 2004: deposit systems would be heavily favored from a tax perspective, which is a strong incentive for Belgian bottling plants and therefore for bulk imports.

Outlook:
According to Sopexa, it is less expensive to maintain an existing market than to tackle new markets. There are many arguments in favor of implementing measures to support French wines in Belgium, particularly in Flanders. Firstly, its small size allows for effective communication campaigns to be implemented with a relatively modest level of investment compared to neighboring countries. Secondly, the structure of large-scale distribution means that by working with just three retailers, it is possible to reach 50% of the country's consumers. Finally, the purchasing power of Flemish consumers is among the highest in the European Union, and wine consumption is growing significantly in the north of the country.