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Wine Market Size, Share & COVID-19 Impact Analysis, By Type (Sparkling Wine, Still Wine, and Others), By Flavor (Red Wine, White Wine, and Rose Wine), By Distribution Channel (On-trade and Off-trade), and Regional Forecast, 2021-2028

Last Updated: April 08, 2024 | Format: PDF | Report ID: FBI102836

 

KEY MARKET INSIGHTS

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The global wine market size was valued at USD 339.53 billion in 2020 and is projected to grow from USD 340.23 billion in 2021 to USD 456.76 billion in 2028 at a CAGR of 4.30% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with alcohol consumption witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -6.79% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The industry is evoking bucolic landscapes for consumers worldwide and gaining huge popularity in the global marketplace, owing to its taste and refreshing properties. The beverage has become an important commodity and is also gaining popularity in the overseas market, owing to the relaxed trade duties and tariff barriers in marketing. The increasing trend of socialization with alcohol among people, coupled with the advent of low alcohol-by-volume (ABV) drinks for the working population is majorly propelling the market growth.


Supply Chain Disruptions Amid COVID-19 to Negatively Impact Market Performance


The COVID-19 pandemic has brought about a remarkable transformation in global markets, especially this particular market. The distribution channels around the world were disrupted, due to extensive closures of various facilities and restrictions on public mobility. According to Comité Européen des Enterprises Vins (CEEV), the pandemic caused an unprecedented decrease in global alcohol trade and reduced international exports in 4 months (March-June) by -17% in value compared to 2019. In addition, according to the International Organization of Vine and Wine (OIV), world wine consumption in 2020 is estimated at 234 MHL, marking a 3% decrease from the previous year, due to irregular consumption behaviors in different countries globally. Sparkling wine was impacted more in countries like U.K. and China, as they were mainly consumed in restaurants, bars or at weddings and special occasions.


The demand and consumption of the drink have been held up in most of the markets worldwide. The biggest impact had been in the way the consumers bought it, as consumers gradually shifted towards purchasing the drink online, due to the firm closure of on-trade channels. While, in case of off-trade channels, growth at all price points was observed. Furthermore, with the ease in quarantine restrictions and acceleration of consumers towards online purchasing, the market is anticipated to gain its usual growth pace.


LATEST TRENDS


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Product Premiumization to Aid in the Expansion of Market


The consumption of this drink is now more likely associated with a wealthy and lavish lifestyle of the consumers; thereby, promoting the market growth. Consumers in the major developed economies are curious and looking to buy a variety of quality products in the market. As consumers are becoming “wine connoisseurs”- an expert in the judgment of taste, manufacturers are emphasizing launching several premium and sensorial brands in the market. Premiumization is part of ongoing trends among consumers, thereby attracting long-term revenue from the world. Furthermore, with the recent introduction of the canned product by companies such as Sula Vineyards Pvt. Ltd. and Ardagh Group S.A.; the millennials and less experienced consumers of liquor across the world will have more opportunities to taste and enjoy it in upcoming years. In addition, canned liquor is the more accessible and economical drink for individuals and is gaining wide popularity, which is expected to be the new trend in the market as well as among beverage consumers.


DRIVING FACTORS


Increasing Alcohol Socialization among Consumers to Aid Market Growth


Wine production and consumption have witnessed rapid development in the past few decades, which has resulted in its increased consumption pattern. Nowadays, social engagements, modernization, and increasing adoption of Western culture are some of the factors promoting alcohol socialization among consumers.            


Alcohol consumption is becoming a sign of social status which is supporting the growth of low alcoholic beverages in the market. It is gaining huge popularity among millennials and youngsters, owing to its refreshing appeal and low ABV offerings. It is majorly associated with several occasions and served as a table drink with regular food in developing countries. This increasing demand is further encouraging manufacturers to launch and introduce innovative products in the market, which ensures its future market growth.


The Emergence of E-commerce Platforms to Support Higher Revenue Generation


E-commerce has become an increasingly popular option for buying alcohol in the past few years and is expected to grow further during the forecast period. Consumers are getting several benefits such as a convenient shopping experience, on-time home delivery, varied schemes, and others. Thus, the online sales channel is performing a crucial role in major markets such as the U.K., U.S., Italy, Spain, and others. According to the Ministry of Foreign Affairs Netherlands, online sales in developed regions such as Europe and North America are expected to grow annually by approximately of 15%. In addition, the COVID-19 crisis has boosted the e-commerce of the drink segment. According to Comité Européen des Entreprises Vins (CEEV), in Europe, the growth of this channel increased by 180% on average in volume, during the lockdown phase. Thus, manufacturers are focusing on developing new e-commerce platforms and entering into collaborations to expand their sales in the market. The technological advancements and improved distribution networks in e-commerce are further expected to bolster growth in the future.


RESTRAINING FACTORS


Gradual Shift of Consumers Toward Other Alcoholic Beverages May Hamper Market


The growing modernization and rise in alcohol consumption are ongoing trends across the globe, which has nudged the alcohol industry producers to launch innovative and bold variants in alcoholic beverages. The gradual shifting preferences of consumers towards various alcoholic beverages such as liqueurs, spirits, beer, and others due to their availability at economic prices.  According to American Addiction Centers (AAC), the majority of alcohol consumed every year around the world are beer, lagers, and cider i.e., approximately 400 billion liters. In 2018, the market share of beer consumption in the U.S. was 45.5%, liquor was 37.3% and the least share was of this product i.e., 17.2%. Thus, the trend of shifting towards other alcoholic drinks is likely to dampen the market growth in the upcoming years. However, the industry players are channelizing their focus towards enticing consumers’ by introducing drinks with various ABV ranges in the market.


SEGMENTATION


By Type Analysis


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Still, Wine Dominates the Global Marketplace, Due to its Offerings of Authentic Taste and Flavor


Still, wine is the oldest and the most popular form of alcohol served across the world. It is one of the most widely drunk and highly available alcoholic drinks, which is consumed as table liquor in European countries. The rising association of this kind with several occasions and food servings has made it a versatile drink that can be consumed in cocktails and on its own. The offerings of authentic taste along with the premium-sized appeal to consumers has resulted in its higher sales in the global market. 


However, sparkling wine is also emerging with immense potential all across the world, owing to its effervescent properties which make it unique in its spectrum. Consumers in developing countries are enticed towards innovative and this drink, offers desired sensorial properties and mouthfeel to consumers. People in several developing countries such as India, China, and others are becoming more experimental and prefer innovative drinks during their purchasing. Various manufacturers are engaged in the production of the new variety in the market which indicates the future growth of the market. 


By Flavor Analysis


Health Benefits and Luxurious Appeal Associated with Product to Hold Largest Market Share


Red wine is being consumed for many centuries in the past and is still a popular drink, which is globally trending. The drink is known to have several health-benefiting properties such as antioxidants. Various in-vitro studies have proved that regularly consuming liquor in a restricted amount may help in improving the consumers’ lifestyles. Along with this, it also has a luxurious appeal and is widely available to consumers. Therefore, it combines both – health-benefiting attributes and great taste, which has led red wine to emerge as a dominant segment and is anticipated to flourish even more in the coming years.


Rosé wines from regions such as French Provence, Italy, and Spain will continue to gain popularity in upcoming years. They are incredibly versatile and light, offering the freshness of white wine, but the body and fruit of red wine. This medium-sweet wine is low in alcohol and easy to drink. It has a great scent and is famous with female drinkers in particular. As women continue to take an interest in liquor, the rose segment is anticipated to witness substantial growth during the forecast period.


By Distribution Channel Analysis


Rapid Emergence of Modern Retail Have Resulted in Higher Revenue Generation Through Off-trade Distribution Channel


An off-trade distribution channel is one of the most efficient sales channels to deliver the product in the market. The off-trade channels consist of supermarkets, convenience stores, specialty stores, and others. Offering product variety at lower prices as compared to pubs, bars, and other on-trade channels has increased the popularity of retail counters across the world. Investors are intensively focusing on the development of modern trades and convenient retail points to offer easy shopping at affordable prices in the market, which is attracting high revenue to the market. On the other side, the rising adoption of different drinking practices has resulted in dine-out trends among consumers. The rising Westernization and cross-culture trends across the world are expected to promote the popularity of on-trade channels in the near future.


However, the drastic governmental measures and the increasing period of lockdowns due to COVID-19 around the world have majorly impacted the alcohol-buying behavior of consumers. With the closure of the on-trade channel, an average increase in sales in the off-trade has been observed. People are buying alcohol through e-commerce platforms in several economies such as China, the U.S., France, and others where home delivery is permissible. Thus, the shifting of consumers towards retail stores and e-commerce amid the lockdown is expected to contribute to the growth of this segment.


REGIONAL INSIGHTS


Europe Wine Market Size, 2020 (USD Billion)

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Europe Market Holds Major Market Share, Due to High Engagement with Culture and Civilization


Europe is expected to hold the largest share, as it offers one of the most attractive product varieties, exemplified by being the major consumer in the world and accounting for USD 204.94 billion in 2020. It has been always enmeshed in certain cultures and occasions that involve the product as a symbol of celebration. This stands as one of the major growth pillars of the market in the region. According to the International Organization of Vine and Wine (OIV), in 2020, European Union accounted for 48% of the world's product consumption, with an estimated volume of the drink of about 112mhl. France remains a major consumer with a consumption volume of 24.7 mhl in 2020, although the per capita consumption is showing a declining trend in the past few years. Italy is the second largest market within EU with a consumption of 24.5mhl, a 7.5% increase compared to 2019, according to OIV. The growing popularity of this product is associated with the increasing acceptance of low-ABV beverages among the young working population in their daily hectic schedules. Thus, the demand is encouraging manufacturers to introduce new and innovative products in the market.


North America is the second largest market for this product. The region has a massive potential for growth, owing to millennials growing inclination towards premiumization trends. In 2020, the U.S. was the world’s largest product-consuming country with 33 mhl, i.e., 14% of the world's product consumption, according to OIV. The sales of the California market hit USD 40 billion, despite the drastic closure of on-premise sales amid COVID-19, according to the Wine Institute. With the growing demand and consumption among consumers, manufacturers are focused on expanding their product ranges. For instance, in September 2020, Riboli Family Wines, a California-based family-owned company, announced the launch of Highlands 41. Furthermore, the establishment of new vineyards keeping consumers’ demand in mind, is also expected to drive growth in upcoming years.


Asia Pacific is expected to hold a significant market share in the global marketplace. This is owing to the rising adoption of westernized trends and the consumption of various regional cuisines among consumers. In China, domestic vineyards have been springing up throughout the past years. The government is also providing interim assistance to help local grape producers with nursery imports, technology training, water supply, road renovation, and electrical infrastructure projects. With the new desire for domestic goods among Chinese consumers these vineyards are expected to contribute to the market growth of the APAC region. In addition, South Korea is an ever-evolving business landscape for this product in the region. Alcohol is an important part of daily life for many South Koreans, according to Asia Beverage Media Group, the revenue of the South Korean market amounted to USD 1,671 million in 2019. Furthermore, the HoReCa (Hotel, Restaurant, and Cafe) sector is also serving table drinks along with their varietal food options, which is accelerating the demand in the region.


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However, South America and the Middle East and African markets are expected to hold the least market share, due to the lack of awareness and sub-optimal product penetration in the market.


KEY INDUSTRY PLAYERS


Fragmented Industry Structure to Define Market Competition


The competitive landscape of this market is moderately fragmented due to the presence of several key players in the market. The Wine Group, John Distilleries, International Beverage Holdings, Distell Group, and Halewood Wines are some of the major players with major market share. The manufacturers are focusing on developing new formulations and introducing new products in the market. For instance, in April 2021, Familia Torres, the Spanish liquor producer, announced to expand its range of Priorat wines with a launch of new pleasant and indulgent red wine. The product Secret del Priorat 2018 (DOQ Priorat) comes from selected vineyards and reflects the diverse peculiarities of each plot and variety.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • September 2021 – Familia Torres, discovered the latest vintage of their Antología Miguel Torres wine collection. The flagship liquor embodies the vinery's commitment to regenerative viticulture and sustainability as a way of fighting against climate change. The five wines are Milmanda 2018, Mas La Plana 2017, Reserva Real 2017, Grans Muralles 2017, and Mas de la Rosa 2018.

  • July 2021 - E. & J. Gallo Winery Group, global liquor and spirits industry leader, in collaboration with Randall Grahm, a legendary winemaker, and visionary announced the release of a collection of wines named “The Language of Yes”. The new collection is inspired by the rich history of wine growing in Southern France.


REPORT COVERAGE 


An Infographic Representation of Wine Market

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The growing world population is stepping towards an increased awareness of the product and its benefits with high efficacy. This is anticipated to add impetus to the market in the future years. The report provides qualitative and quantitative insights into the impact of COVID-19 on the market. It also offers a detailed analysis of its utility, applications, types, market size, and growth rate for all possible segments in the market.


Along with this, the report provides an elaborative analysis of the market, its dynamics, and its competitive landscape. Various key insights presented in the report include an overview of related markets, recent liquor industry insights and trend developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key wine industry trends.


Report Scope & Segmentation

















































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



  2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion)



Segmentation



By Type



  • Sparkling

  • Still



  • Others



By Flavor



  • Red

  • White

  • Rose



 



By Distribution Channel



  • On-trade

  • Off-trade



 



By Region



  • North America (By Type, Flavor, Distribution Channel, and By Country)

    • U.S.

    • Canada

    • Mexico



  • Europe (By Type, Flavor, Distribution Channel, and By Country)

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

    • Rest of Europe



  • Asia Pacific (By Type, Flavor, Distribution Channel, and By Country)

    • China

    • Japan

    • Australia

    • Rest of Asia Pacific



  • South America (By Type, Flavor, Distribution Channel, and By Country)

    • Brazil

    • Argentina

    • Chile

    • Rest of South America



  • Middle East and Africa (By Type, Flavor, Distribution Channel, and By Country)

    • South Africa

    • Turkey

    • Rest of ME&A








Frequently Asked Questions

Fortune Business Insights says that the value of this market was at USD 339.53 billion in 2020 and is projected to reach USD 456.76 billion by 2028.

Growing at a CAGR of 4.30%, the market will exhibit steady growth in the forecast period (2021-2028).

Still wine segment is expected to be the leading segment based on type in the global market during the forecast period.

Rising alcohol socialization is a key factor that drives the growth of the market.

The Wine Group, John Distilleries, International Beverage Holdings, and Distell Group are few key players in the market.

Europe is expected to hold the highest market share in 2020.

Red wine is expected to grow at a faster rate.

Premiumization of this product is a key market trend.

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