Global wine market was valued at USD 402.11 billion in 2023, expected to reach USD 695.87 billion in 2031, with a CAGR of 7.1% for the forecast period between 2024 and 2031. The market dynamics can be characterized by various factors such as consumer preferences, economic conditions, climate change, and technological advancements.
The wine market has been growing steadily in recent years, driven by rising consumption of wine across the globe, especially in emerging markets such as China and India. Also, rising interest of millennial generation in wine culture and a desire to explore new varieties has contributed to the market expansion. Key factors influencing the market include the growth of organic wines, as consumers become more healthy and environmentally conscious. Furthermore, the emergence of e-commerce channels and direct sales channels has revolutionized the way wine is marketed and distributed, creating new opportunities for producers to reach consumers.
Despite several growth factors, the market poses challenges, including fluctuating grape harvests due to climate change, growing competition from new wine manufacturing companies, and regulatory hurdles in the markets. Overall, the market outlook seems positive with continued innovation catering to the evolving preferences of consumers and strategic marketing techniques adopted by manufacturers.
In April 2024, Winebow announced the inclusion of the wineries DeLoach Vineyards, Elizabeth Spencer, J. Moreau & Fils, Mommessin, Laboure-Roi, and Domaine Maire from the Boisset Collection to Winebow Imports. These wineries will get full-service national sales and marketing support from Winebow Imports.
Sustainability Trend Fuels the Market Growth
Sustainability is becoming a key driver of market growth in the wine industry, influencing consumer preferences, shaping product design, and guiding purchasing decisions. Consumers are increasingly concerned about the environmental and social impact of products including wine.
Moreover, the sustainability trend extends beyond manufacturing to packaging and distribution. Breweries are exploring new packaging options, such as small glass bottles and recyclable containers, to lower carbon emissions and reduce environmental impact during transportation. In January 2024, four wines from Element [AL] Wines brand by California-based Bogle Family Wine Collection launched packaging in 750 ml aluminum bottles that have been designed to resemble conventional wine bottles and are lightweight, shatterproof, and infinitely recyclable.
Growing Interest in Luxury Wines to Drive the Demand
The growing interest in luxurious wines is a considerable driving force of demand in the wine market, fueled by a combination of things including rising global wealth and the desire to access exclusivity. As disposable incomes grow, there is a greater inclination towards indulging in luxurious experiences, such as fine wines. Luxury wines are frequently related to exceptional craftsmanship and history, making them proper for enthusiasts in search of unique and memorable experiences.
Furthermore, the growing sophistication of wine consumers, coupled with a choice for source authenticity, has contributed to the growing demand for luxurious wines from renowned producers. Collectors and enthusiasts are willing to pay top rate prices for uncommon and limited-edition wines which encompasses the essence of terroir and showcases the artistry of winemaking. For instance, in March 2024, the largest winery in Israel, Carmel Winery, added the new vintage, Carmel Black Cabernet Sauvignon Galilee 2021, to its prestigious SIGNATURE line, a collection of luxury wines. The wine has a deep, dark crimson color, containing ripe fruit, cassis, and tomato leaf scents that are slightly tempered by warming spice undertones.
White Wine Holds the Largest Market Share
Global demand and supply for white wine have increased since 2000. The perceived health benefits of white wine are the major factors influencing its consumption patterns all over the world. The wine ranges in alcohol level from 5% to 14%, with an average ABV of 10%, which is quite low as compared to the higher alcohol content in red wine. The lower alcohol level in white wine makes its consumption easy and encourages to drink more. Since its lowest point in 2002, according to the data provided by International Organisation of Vine and Wine, white wine production has climbed by 13% in 2021, surpassing red wine output beginning in 2013. In the early years of the century, white wine made up 46% of the global total on average; however, in recent times, this percentage increased to 49%. The rise of sparkling wine is one of the primary factors contributing to this growth. Italy, France, and Spain account for almost two-thirds of the world’s white wine production, producing 29.4 mhl, 18.4 mhl, and 17.4 mhl of wine respectively in 2021.
Europe Holds the Dominant Share
In 2023, Europe had the majority share geographically, with countries including France, Portugal, and Italy, with significant annual per capita wine consumption. Also, wine production capacity is the highest in the region. Due to greater harvest volumes in Europe, the International Organization of Vine and Wine estimated the global wine production to be 258 mhl in 2022. There are 3.3 million hectares of vineyards in the region. The largest ones are in Spain (955 kha), followed by France (812 kha). In addition, France leads in wine consumption with an estimated 25.3 mhl, making it the second-biggest consumer of wine worldwide, after the United States, which is predicted to have consumed 34.0 mhl in 2022. Portugal consumes 51.9 liters of wine annually per person.
In November 2023, with the introduction of two powerful wines, Greasy Fingers Big Buttery Chardonnay 2022 and Greasy Fingers Luscious Red 2022, Pernod Ricard UK disrupted the wine market. These wines are skillfully made to cut through greasy food and are the ideal complement to gourmet fast food.
Future Market Scenario (2024 – 2031F)
- E-commerce and D2C sales channels are likely to experience growth in future playing a vital role in promoting the sales of wines across the globe, offering convenience and accessibility to consumers.
- Sustainable and organic wines are expected to spur the market with growing number of environmentally conscious consumers along with rising health concerns. Increased usage of sustainable farming practices, biodynamic viticulture, and carbon-neutral production practices can be expected further.
- Innovation will drive the market with better packaging formats and the addition of new flavours to the existing ranges, catering to changing tastes and preferences of consumers.
Report Scope
“Wine Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global wine market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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