Wine Market Trend Analysis On The Basis Of Product, Distribution Channel, And Region
Wine Industry Overview
The global wine market size is expected to reach USD 685.99 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.4% from 2021 to 2028. The growing preference for wines among all age groups instead of hard spirits across the world is expected to be a major factor contributing to the growth of the market. In addition to this, growing party culture with higher demand for low alcoholic beverages is anticipated to fuel the market growth over the forecast period.
Wine has gained wide-scale penetration across the globe. Its popularity is attributed to its affordable pricing along with fine taste. Online sales of wine have made it exceptionally affordable and accessible to consumers, regardless of their location. Along with that, digital communication technologies have improved the experience of shopping for different types of wine.
The off-trade distribution channel enjoys maximum penetration across the globe. The regular consumption of table and dessert wines is likely to be the major factor driving the sales of different types of wines through off-trade distribution channels. In addition, the low prices of wine being sold through these distribution channels are likely to encourage more consumers to opt for these, resulting in a positive impact on the market growth over the forecast years.
Companies are increasingly focusing on producing new wines to gain market share across the globe. For instance, in May 2020, E. & J. Gallo Winery announced the launch of a new French rosé, created and developed by Post Malone, a Grammy-nominated record artist, in partnership with Global Brand Equities and Dre London. E. & J. Gallo Company has exclusive distribution and sales support for the brand.
To increase geographic reach, cut down competition, and expand market share, companies are adopting strategies such as mergers & acquisitions and various partnerships. For instance, in 2020, Accolade Wines acquired the operations of Australian wine company Katnook Estate from Wingara Wine Group. Accolade Wines will control approximately 160 hectares of vineyards in Coonawarra, Australia.
Wine Market Segmentation
Grand View Research has segmented the global wine market on the basis of product, distribution channel, and region:
Based on the Product Insights, the market is segmented into Table Wine, Dessert Wine, and Sparkling Wine.
- Table wine held the largest share of more than 84.0% in 2020 and is expected to maintain its lead over the forecast period. Being inexpensive and easily accessible through retail, table wines often find preference among new consumers of the product. With the changing lifestyles, there has been a shift in alcohol consumption-from hard liquor to mild alcoholic beverages, such as beer, wine, and seltzers.
- Sparkling wine is projected to register the fastest CAGR of 6.6% from 2021 to 2028. Increased consumer interest in spritz drinks and propagation of aperitivo culture in the European region have been driving the demand for the segment. In the U.S., leading brands such as La Marca Prosecco (E. & J. Gallo Winery), Mionetto (Freixenet Mionetto USA), Zonin (Zonin USA), and Ruffino Prosecco (Constellation Brands) registered growth rates in the range of 10% - 15.4% between 2017 and 2019.
Based on the Distribution Channel Insights, the market is segmented into On-trade, and Off-trade.
- The off-trade segment held the largest share of 89.0% in 2020.The off-trade distribution channel includes retail outlets, supermarkets, and hypermarkets. With the ongoing pandemic, the off-trade distribution channel has seen more growth as compared to the on-trade channel.
- The on-trade distribution channel segment is anticipated to register the fastest CAGR of 15.3% from 2021 to 2028. The growing party culture among the younger and working-class population across the globe is expected to boost the sales of the product through an on-trade sales channel.
Wine Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is characterized by the presence of a few well-established players and several small and medium players.Mergers, acquisitions, and consolidations have been occurring among wineries worldwide.
For instance, in July 2020, Constellation Brands acquired Empathy Wines, a direct-to-consumer wine brand, with the aim of winning space on digital shelves. According to alcohol beverage compliance firm Sovos ShipCompliant, USD 3.2 billion worth of wine (6.6 Billion cases) was sold directly to consumers in 2019. Empathy’s e-commerce prowess will benefit the entire Constellation wine portfolio. Some prominent players in the global wine market include: -
- Asahi Group Holdings, Ltd.
- Beijing Yanjing Beer Group Corporation
- The Wine Group
- Castel Frères
- Accolade Wines
- Constellation Brands
- Treasury Wine Estates (TWE)
- Pernod Ricard
- & J. Gallo Winery
- Viña Concha y Toro
Order a free sample PDF of the Wine Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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