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The Global Wine Market size is forecast to increase by USD 134.59 billion, at a CAGR of 4.45% between 2022 and 2027. Market expansion relies on multiple factors, notably the surge in online sales channels, heightened application and demand in the food industry, and the burgeoning awareness of wine's health benefits. As consumers increasingly embrace e-commerce platforms for purchasing convenience, the industry is adapting to meet this demand by enhancing its online presence. Moreover, the integration into culinary experiences further stimulates market growth, as it becomes an integral component of dining occasions. Additionally, the recognition of wine's health attributes, such as antioxidants and moderate consumption benefits, contributes to its popularity among health-conscious consumers. By leveraging these factors, the market capitalizes on evolving consumer preferences and lifestyle trends, fostering sustained growth and innovation within the industry.
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In the market, e-commerce plays a significant role, offering consumers convenient access to a variety of red wine options. Consumers are increasingly drawn to wines containing resveratrol, known for its potential health benefits. Wine production focuses on sustainability and organic methods, ensuring the quality of alcoholic beverages made from grapes. Preservatives like potassium sorbate and potassium metabisulfite are used, while factors like water, aromatics, and acids contribute to the wine's flavor and aroma. Wine's impact on health, including its potential to reduce bad cholesterol and blood sugar levels, and its association with cancer prevention, highlights its multifaceted appeal beyond its culinary and cooking applications.
This market report extensively covers market segmentation by distribution channel (off-trade and on-trade), product (red, fortified, white, and sparkling), and geography (Europe, APAC, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the off-trade segment will be significant during the forecast period. Supermarkets and hypermarkets are the major retailers in the off-trade distribution channel. These retailers offer a wide range from different producers, countries and regions, making it easy for customers to purchase a variety of wines.
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The off-trade segment was valued at USD 250.89 billion in 2017. Off-trade distribution channels refer to selling products or services to consumers through retail outlets such as supermarkets, convenience stores, convenience stores, kiosks, wine and liquor stores, and online platforms. Off-trade distribution channels are methods of selling wine that takes place outside of bars, restaurants, or nightclubs. Due to its convenience, this distribution channel is popular with customers who prefer to buy and consume it at home. Sales through off-trade distribution channels are expected to increase significantly during the forecast period, owing to the proliferation of wine e-commerce portals and the rise of supermarkets, hypermarkets and department stores across the globe.
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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, Europe will account for the largest share of the global wine market and is anticipated to become one of the key markets during the forecast period. The market is driven by steady growth in Eastern Europe. Breweries and wineries are one of Europe's largest businesses and offer numerous employment opportunities. Portugal, France, Italy, and Switzerland are the major European wine consumers. Moreover, in Europe, non-trade consumption of wine is higher than on-site consumption. Demand for wine is greatest among the elderly. This consumer segment prefers premium wines.
E commerce platforms have revolutionized the market, offering diverse selections of alcoholic beverages to consumers worldwide. Alcohol, particularly in fortified wine, contributes to its distinctive taste, along with elements like tannins. However, excessive consumption may lead to cell damage. Despite this, moderate consumption is often associated with health benefits, such as reducing the risk of the common cold and combating enzymatic browning. This balance underscores the complex relationship between alcohol and health in the context of wine consumption. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing use of online sales channels is the key factor driving the growth of the market. The availability of online stores and online specialty stores, along with the convenience of online shopping offers consumers a wide range of choices. Consumers are more comfortable shopping online because they can compare prices. Increasing use of online channels for purchasing is likely to drive the growth of the market over the forecast period. The presence of strong online distribution channels and platform providers, such as WineWell, LiquorKart, and others, are expected to boost the growth of the online sales.
Additionally, the increase in online sales channels is expected to create new opportunities for vendors to target customers without geographical boundaries, improve their operational efficiencies, and provide customized products to consumers. Moreover, the online sales platform eliminates middlemen such as distributors and enables vendors to offer products at competitive prices while maintaining their profit margins. Such factors will increase the online sales channels during the forecast period.
The increasing prominence of private-label brands is the primary trend in the market. Private-label wine is becoming an important area for retailers around the world. Various retailers are selling different types of wine under their own brands to increase their profitability, which contributes to the growth of the market. Leading retailers around the world are launching their own brands to capitalize on the growing consumer demand for wine. In the last decade, the private-label product segment has grown in terms of scope and size. For instance, China-based Alibaba sells a variety of sparkling brands under its own brand.
Furthermore, retailers, especially grocery stores, see the private-label category as a profitable option with margins that are 10%-15% higher than national and global brands. Private-label wines are made exclusively for a single retailer and are sold under the retailer's own brand name, not the winery brand. Major grocery retailers, such as Tesco Plc and Aldi Stores Ltd., have come up with their own brands of sparkling wine, and the penetration level of private labels in some European countries is more than 50%. Therefore, the growing prominence of private-label wines is expected to drive the growth of the market in focus during the forecast period.
Rising competition from other alcoholic beverages is a major challenge to the growth of the market. The market faces increasing competition from other alcoholic beverages, which could hamper its growth and popularity. Alternatives such as beer, spirits, and cocktails are available worldwide and are sometimes cheaper and more accessible than wine.
Moreover, younger consumers may be more attracted to the sweeter and more flavorful options offered by other alcoholic beverages rather than the more traditional taste of wine. These factors, along with others, can make it challenging for the market to compete with other alcoholic beverages and maintain its growth and popularity, which will negatively impact the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accolade Wines Australia Ltd.: The company offers wines such as Pinot Gris, Sauvignon Blanc, and Riesling.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
Wine tourism offers enthusiasts immersive experiences into diverse wine varieties across regions, complemented by Western cuisines. Exploring red wine varieties like Chianti and Champagne contributes to expanding palates and understanding the luxury wine market. While alcoholic beverage consumption is linked to circulatory issues, moderate wine consumption may benefit heart health, reducing the risk of heart diseases like atherosclerosis and stroke. This positive association fosters a positive outlook towards wine's product adoption. With an emphasis on high-quality ingredients and premiumization, flavored fortified wines cater to evolving lifestyles, resonating particularly with young consumers conscious of health and carbon footprint.
Further, retail sales channel plays a pivotal role in distributing wines like vermouth, offering options for consumers concerned about circulatory diseases such as coronary heart disease and heart failure. Wines, known for their delicate flavors and richness of products, foster socializing and enjoyment. Despite concerns about chemicals used in harvesting, responsible practices by growers ensure quality. Moderate wine consumption may even benefit the liver and align with health consciousness, making it suitable for those with conditions like celiac disease seeking options that balance indulgence with wellness during the market forecast period.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.45% |
Market growth 2023-2027 |
USD 134.59 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.24 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
US, Canada, China, Germany, and France |
Competitive landscape |
Leading Copanies, Market Positioning of Copanies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accolade Wines Australia Ltd., Boisset Family Estates, Bronco Wine Co., Casella Wines Pty. Ltd., Castel Freres, Charlie and Echo, Delicato Family Wines, Deutsch Family Wine and Spirits, E. and J. Gallo Winery, Emiliana Organic Vineyards, Harris Organic Wines, Inglenook, Jackson Family Wines Inc., King Estate Winery, Les Domaines Barons de Rothschild Lafite, Pernod Ricard SA, The Wine Group LLC, Treasury Wine Estates Ltd., and Vina Concha y Toro SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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