Wine lovers in Britain may have to pay nearly a quarter more to enjoy a glass of their favourite wine after Brexit, a new study has shown. The UK Trade Policy Observatory has carried out fresh analysis on the long-term impact of the UK’s exit from the EU on the wine market. The report, authored by two Australian economists, Kym Anderson and Glyn Wittwer, indicates that by 2025 the price of wine in the UK could be 22 per cent higher than it would be were the UK to remain in the EU. In addition the report indicates that the volume of consumption will be 28 per cent lower, and the value of UK imports 27 per cent lower.
The report points to the impact of the devaluation of the GB Pound in the aftermath of the Brexit vote, and a slower economic growth, which will increase the cost whilst cutting demand for imported wine in bulk and in bottles into the UK. The UK accounts for nearly one-fifth of total wine imports around the world and the report is therefore bad news for producers the world over. The calculations in the report estimate an overall $1.2 billion reduction in wine exports from the EU by 2025 as a result of falling demand.