In an era of declining demand for Italian wines, the industry is in a tough spot.
The industry is also facing a surge in demand for premium wines.
“The Italian wine business is facing an unprecedented challenge: to become the leading wine producer in the world and to make up for the fact that in recent years, the wine industry has suffered from a lack of investment and quality,” said Italian wine expert Antonio Giacchino, a wine analyst at London-based Euromonitor.
The situation is especially dire because Italy is facing a record drought and is struggling to produce enough wine for its wine-hungry consumers.
“The situation in Italy is even worse than the United States.
In the United Kingdom, the drought is more serious,” Giaccho said.
The average daily wine consumption in Italy was 3.5 litres in the summer of 2016, according to Euromonitors study, which was released last month.
With the drought in Italy, Italian producers have started to invest in new production lines and new products.
Giacchinos study shows that in the first six months of this year, Italian wine production reached a new high of 1.7 million tonnes, up 40% from the previous year.
“There are very few producers who have been able to sustain their existing production lines, especially in Italy,” he said.
But the problem is not only that there are few wine makers, but also that the Italian industry is facing many challenges that make it difficult for it to compete with other markets.
According to Euromonitor, Italy’s wine production fell by 4.1 million tonnes in the last year, while the number of new wine producers rose by 3.3 million.
“Italy is facing very high inflation, and its consumers are also very angry at the government for not doing anything about the shortage of funds,” Giaccchino said.
In January, the government cut wine prices by 8.5% on average, and in March, the country increased the maximum price for wine from 1,500 euros ($1,720) to 1,900 euros ($2,080).
In the summer, Italy also reduced prices for beer and wine by up to 20% on the average.
However, the problems with the Italian wines industry continue.
“It has always been the case that Italy is a country where there is a strong appetite for wine, but there has been a lot of problems in the industry in recent times,” Giaca told Al Jazeera.
“The current situation is a huge disappointment to all of us who have invested a lot in the wine and who believe in the value of wine.”
Giacchi said that the problem is exacerbated by the fact the industry was once an important source of growth for the Italian economy, but in recent decades it has fallen.
Italy has been one of the biggest producers of wine in Europe for more than 200 years, but with the rise of global demand, it is now a declining export market.
Last year, it exported more than 7 million tonnes of wine to the US, with a high proportion of that coming from the United Arab Emirates.
Giacchino says that while the wine is good quality, it does not reflect the quality of the production.
“We don’t have the luxury of buying wine from a great producer and producing it in a very good way.
It has to be done by hand,” he told Aljeimers.”
If we buy wine from someone else who has better quality, then we are not really getting anything from it.
As a result, Italy is not able to keep up with the demands of its customers,” Giacci said.
“Italian wines have to be produced by hand.”
Italy’s wine producers are working on solutions to the problems facing them, but for the moment, the result is that it is difficult for the industry to sustain its business, according Euclid.
Italian wines are also struggling to meet demand for their premium wines, according a recent study from the University of Southern California in California.
For example, Giovanni Cappello, a Italian wine critic, said that in Italy’s top tier wine region, Bergamo, there are more than 70,000 wineries and restaurants.
Only about half of those wineries have been licensed to produce wines for export, and they are producing the same wines in the same way they have for years.
In recent years however, new wine growers have entered the market, and have been producing wines that are lower in alcohol content and are being exported as premium wines and sold at a higher price.
“For the sake of our industry, we need to get more investment in our wine industry,” Cappello told Aljazeera.
“This is why we need the government to give more money to wine producers.”
In Italy, a number of countries