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The global wine market size was USD 364.25 billion in 2019 and is projected to reach USD 444.93 billion by 2027, exhibiting a CAGR of 6.06% during the forecast period.
The industry is evoking bucolic landscapes for consumers worldwide and gaining huge popularity in the global marketplace, owing to its taste and refreshing properties. It has become an important commodity and is 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 advent of low alcohol-by-volume (ABV) drinks for the working population is majorly boosting the market.
The global pandemic caused by COVID-19 will affect the global market negatively. The pandemic has affected the overall production and procurement of raw materials, which will result in the demand and supply disruptions in the market. The trade pattern has set to plunge as the pandemic upends the global economy. The downfall of its supply as well as an extended lockdown period, and restricted purchasing ability of consumers have influenced the market negatively. This condition is expected to interrupt the consumption patterns mainly in import-dependent economies such as Spain, the U.S., and others. Furthermore, the increased efforts, initiatives, and regulations imposed by various governments are expected to help the market to get back in its previous growth trend over the coming years.
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Wine Premiumization to aid in Expansion of Market
Wine consumption is now more likely associated with a wealthy and lavish lifestyle of the consumers and is promoting wine market growth. Consumers in the major developed economies are curious and looking to buy variety of quality products in the market. As the consumers are becoming “wine connoisseurs”- an expert in the judgment of taste, manufacturers are emphasizing on launching several premium and sensorial brands in the market. Premiumization is a part of ongoing trends among consumers, thereby attracting long-term revenue from the world.
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. 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 the millennials and youngsters, owing to its refreshing appeal and low ABV offerings. It is majorly associated with several occasions and served as table wine 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.
Emergence of E-commerce Platforms to Support the Higher Revenue Generation
E-commerce has become an increasingly popular option for buying alcohol from the past few years and is expected to grow further during the forecast period. The consumers are getting several benefits such as convenient shopping experience, on-time home delivery, varied schemes, and others. Thus, the online sales channel is performing a vital role in major markets such as the U.K., U.S., 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 an approximate of 15%. Thus, manufacturers are focussing 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.
Gradual Shift of Consumers toward Other Alcoholic Beverages May Hamper Market
The modernization and increased consumption of alcohol are currently trending all across the world and have propelled manufacturers to introduce new and innovative alcoholic beverages in the market. Consumers are gradually shifting their preferences towards other alcoholic beverages such as beer, liqueurs, spirits, and others, owing to their low price offerings. This trend is set to pull the overall market and may hamper its growth in the future years. Nevertheless, manufacturers are intensively capitalizing to regain the consumers' attention by launching different ABV products in the market.
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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 served across the world. It is one of the most widely drunk and highly available alcoholic drinks, which is consumed as table wine in European countries. The rising association of still wine with several occasions and food servings have made it a versatile drink that can be consumed in cocktails and on its own. The offerings of authentic taste along with the premiumized 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 makes it unique in its spectrum. The consumers in developing countries are enticing towards innovative and sparkling wine which 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 new variety in the market which indicates the future growth of the market.
Health Benefits and Luxurious Appeal Associated with Red Wine to Hold Largest Market Share
The consumption of red wine was followed for many centuries in the past and is still trending. This is likely to expand this segment all across the world. It is associated with the offerings of several health properties such as powerful plant compounds and antioxidants. Several vitro studies have proven that everyday consumption of wine in a limited amount can help to improve the healthy lifestyle of consumers. On the other hand, it also ensures a luxurious appeal and easy availability to the consumers along with the offerings of health benefits. Thus, the combination of both beneficial as well as luxurious factors has resulted in the dominance of red wine segment and is expected to grow further over the coming years. However, white and rose segments are also performing well in the global marketplace and are further expected to grow at a decent CAGR during the forecast period.
Rapid Emergence of Modern Retails 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 have increased the popularity of retail counters across the world. Investors are intensively focussing 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 lockdown due to COVID-19 around the world have majorly impacted the alcohol buying behavior of consumers. People are buying alcohol through e-commerce platforms in several economies such as China, U.S., France, and others where the home delivery is permissible. This sale is further expected to slow down after a certain period of time, owing to the low production, less workforce, and interrupted trade all across the world.
North America Wine Market Size, 2019 (USD Billion)
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Europe Market Holds Major Market Share, Due to High Engagement with Culture and Civilization
Even though Europe is very popular for the beer market, it offers one of the most attractive varieties, exemplified by being the major consumer in the world. It has been always enmeshed in certain cultures and occasions that involve wine as a symbol of celebration. This stands as one of the major growth pillars of the market in the region. France remains a major consumer although the per capita consumption is showing a declining trend since the past few years. 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.
Europe and North America remained the world’s leading importers in 2018 to fulfill the demand-supply gap in their regions, importing more than 5 billion liters every year. The global pandemic of COVID-19 is expected to dampen its trade scenario across the globe. U.S., Germany, and the U.K. are the major import-dependent countries that are expected to face the disruptions in their market for a certain time period.
Followed by Europe and North America, Asia Pacific is expected to hold a significant wine 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. The HoReCa (Hotel, Restaurant, and Cafe) sector is also serving table wine along with their varietal food options, which is accelerating the demand in the region. However, South America and the Middle East and Africa markets are expected to hold the least market share, due to the lack of awareness and sub-optimal product penetration in the market.
Fragmented Industry Structure to Define the Market Competition
The competitive landscape of this market is moderately fragmented due to the presence of several key players in the market. The manufacturers are focussing on developing new formulations and introducing new products 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 growing world population is stepping towards an increased awareness of wine 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 with the impact of COVID-19 in the market. It also offers a detailed analysis of its utility, applications, types of wine, market size and growth rate for all possible segments in the market.
An Infographic Representation of Wine Market
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Along with this, the report provides an elaborative analysis of the market, its dynamics and competitive landscape. Various key insights presented in the report include an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key wine industry trends.
Value (USD billion)
By Distribution Channel
Fortune Business Insights says that the value of this market was at USD 364.25 billion in 2019 and is projected to reach USD 444.93 billion by 2027.
Growing at a CAGR of 6.06%, the market will exhibit steady growth in the forecast period (2020-2027).
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.
Innovations and emerging e-commerce platforms are the major growth factor for the market.
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