Projecting the world wine market from 2003 to 2010
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Rapid New World supply increases are imposing downward pressures on prices for grape and wine producers. A per capita decrease in wine consumption in the world’s largest wine producers is being offset by consumption increases elsewhere, and growing consumer preferences for higher quality wines. We use a global wine model to project the world’s wine markets from 2003 to 2010. Our decomposition of results allows us to examine the contribution of different market forces to changes in prices and outputs relative to 2003.