Geography and demography
Capital : Brussels
Total Population : 10.666.866
Belgium is made up of 10 provinces- Antwerpen, Brabant Wallon, Hainaut, Liège, Limburg, Luxembourg, Namur, Oost-Vlaanderen, Vlaams-Brabant, and West-Vlaanderen, and one region-Brussels.

Gross Domestic Product : 453.636 million $
GDP per capita : 42.557 $
Currency : euro €
Economy Overview : the primary sector accounts for 1%, the secondary sector 27% and the tertiary sector 72%. The main industrial areas are concentrated in the Flemish area in North Belgium, 2/3 of the gross national income are produced in the Flemish region. With few natural resources, Belgium has to import primary materials and export manufactured goods. 75% of its business is done with other EU countries, of which 18% is with France.

In 2007 wine consumption in Belgium was around 29.4 litres per person. The Belgium market is actually made up of two separate markets, one in the South amongst the French speaking ‘Walloons’ and the other in the North amongst the Flemish community. The Walloons, who make up 40% of the population, normally prefer French wine but they are drinking less and less of it, whereas the Flemish (60%) are drinking more. Furthermore, the Flemish have greater purchasing power than the Walloons, and another difference is that the Flemish are very brand conscious and enjoy wines not only from France but from around the world. In spite of the continuous popularity of red wine, in the French speaking areas there is a noticeable breakthrough of rosé wine. The revival of white wine goes hand in hand with the increase in wine consumption in Flemish areas. The number of people who drink wine on a daily basis is decreasing, whereas the number of regular consumers (at least once a week) is progressing. Drinking wine for pleasure is becoming more popular in Belgium, which is shown by the increased demand for original and diverse wines and a more competitive market. Wine tends to be consumed during a meal, though in Flanders its beginning to develop as a drink to be had on its own. There are considerable regional disparities in wine drinking trends here, it is much more developped in Wallonie but it is Flanders that offers the most potential for progression. Overall still wine has a market share of 65.3%, sparkling wine 20.1% and fortified wine counts for 14.6%. The distribution among the still wines spilts as follows: 53% red wine, 35% white and 12% rosé.

According to AC Nielsen, a third of Belgian wine consumers now spend between 3 and 4 euros on a bottle of wine and the development of wines at round 5 euros is more predictable. In 2002 distribution of wine sales in Belgium according to price was :
-wines costing less than 5 euros =74%
-wines between 5 & 7 euros each = 20%
-wines costing more than 7 euros =6%

Experts predict that the sales volume of wines under 5 Euro will fall slightly by 2010, while the category of 5-8 Euro will increase by 6.3% and that of wines above 8 Euro even by 16.3% [wines of Spain].

The 75cl bottle represents more than 90% of sales volumes for medium range and high quality products, where the French VQPRD provide the majority of these sales, according to the French Foreign Trade Service. Alternative packaging is present for lower quality wine and an evolution in these parts of its respective markets is noticeable, with a decrease in sale volumes of bottles and a continuous increase in the sale of boxed wine. Wine consumption has increased by 7.5% from 2001-2006, some 2.8 billion hectolitres, amounting to about 374 bottles

Distribution to supermarkets dominates the market with 64% of wine sales, according to the French Foreign Trade Service. Hotels and restaurants account for 25% of the market share. In 2001, 85% of sales volumes went to general food outlets and 65% by the principal groups of GMS (medium to large suppliers) who dominate the sector of hypermarkets, supermarkets and hard discounters : Carrefour (a hypermarket and supermarket chain), Delhaize (also a supermarket chain), Colruyt (supermarkets and soft discount) and ALDI (hard discount). The GMS market corresponds to 200 million bottles, which broken down is: hypermarkets/supermarkets (1430 stores - 145 million bottles) hard discounters (460 stores - 40 million bottles), convenience stores/off licenses (8010 sales outlets - 20 million bottles) (source GFK, 2002). Supermarkets and hypermarkets call on importers who buy directly from wine producers. Wholesalers (there around 500 in Belgium) supply directly from vineyards. According to the French Foreign Trade Service, there is a Belgian importation tradition of buying in bulk, in case of a decline in the years to follow. With the law on packaging contributions of 2004, the deposit system benefits from a tax reduction, encouraging the development of bottling lines and bulk wine imports.

According to Sopexa it is less expensive to maintain an acquired market than to penetrate a new one. There are many arguments in favour of putting in place a support system for French wines in Belgium, particularly in Flanders. Firstly, the country’s small size facilitates a modest media investment level compared to neighbouring countries, to put in place communication campaigns. Secondly, mass marketing in partnership with the three major store outlets can reach up to 50% of Belgian consumers. Finally, the purchasing power of Flemish consumers is amongst the highest in the European Union and wine consumption is gradually progressing in the north of the country.