Champagne Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Germany, Italy, France - Size and Forecast 2024-2028

Champagne Market Size 2024-2028

The champagne market is projected to reach a value of USD 2.51 billion, accelerating at a CAGR of 6% between 2023 and 2028. The market is driven by a growing demand from Millennials, particularly those aged 24-40, who constitute a significant segment of the global population. The enthusiasm of this demographic for diverse alcoholic beverages, including champagne, is driving market expansion. Particularly, Millennials in North America lead in alcohol consumption, influenced by a growing multicultural consumer group and the widespread influence of social media.

What will be the Size of the Industry during the Market Forecast Period?

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Market Segmentation by Distribution Channel

Offline segment is the Leading Segment to Dominate the Market

The Offline segment was the largest segment and most frequently distributed offline through specialty shops, supermarkets, hypermarkets and beverage stores. Because these distribution channels provide specific sections for each brand, customers can select from a wide range of items. Several well-known hypermarkets and supermarkets, including Carrefour SA (Carrefour), Tesco Plc (Tesco), and Target kinds (Target), carry several kinds of champagne. In the retail sector, supermarkets and hypermarkets are the main outlets for these products. The rise of the organized retail sector is responsible for this segment's domination. 

Market  - Revenue Share by Offline segment, 2018 - 2028.   

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Europe Holds a Prominent Position in the Champagne Market

Europe is projected to grow for 35% of the global market growth in the forcasted years. Key European markets driving this growth include Germany, Italy, and France. With champagne originating from Europe, the region holds a dominant position in the global market and is expected to sustain this lead. Among European countries, Germany, Italy, and France stand out as some of the largest consumers of champagne. France accounts hold a major share in the production worldwide. Furthermore, the significant production of grapes, particularly in France, makes it the largest regional market. Alcohol consumption is changing in developed nations like France and the UK. Around 80% of the champagne consumed worldwide is produced in France using traditional methods and ingredients. People prefer drinks with reduced alcohol content as they work to adopt a healthy lifestyle. Many manufacturers have created natural flavors like fruity, sweet, and nutty to satisfy this need. Drinking is a lifestyle choice and social gatherings frequently involve drinking. Companies that create beverages with reduced alcohol content and have ingredients that are beneficial for health are expected to stand out among the competition. 

Due to European customers growing interest in health-conscious beverages, champagne varieties with descriptors like no flavor additives, gluten-free, low carb, vegan-friendly, organic, and paleo-friendly are becoming more popular. Europe is anticipated to expand significantly during the forecast period. However, the imposition of stringent government regulations on alcoholic beverages and the presence of a large number of substitutes, such as cider, cannabis, craft beer, and spirits, are expected to hamper the growth of the regional market during the forecast period.

Market Dynamic

The Champagne market is dynamic, facing challenges from ocean freight charges impacting consumer prices. Despite this, the export of champagnes thrives, thanks to producing champagne from red and white grapes, undergoing first fermentation in tanks with acidic solutions. The second fermentation, driven by yeast and sugar, creates the alcohol and carbon dioxide that give champagne its sparkle. Although traditionally expensive and taking a long time to produce, developing technologies and innovative packaging contribute to easy availability. Companies leverage social media advertising and product launches to boost awareness. Champagne complements special occasions like weddings and achievements, with its authentic flavors and health benefits from antioxidants, though excessive consumption can pose risks like heat-related illnesses and strokes.

Major Market Drivers

Growing demand from Millennials is notably driving the market growth and trends. Individuals in the age group of 24-40 years constitute a major segment of the global population. The increasing demand for a wide range of alcoholic beverages, and brewers, including champagne is driving the growth of the market. Millennials in North America show higher alcohol consumption rates compared to other regions. This interest in alcoholic beverages is fueled by an increasingly diverse consumer base and the rising influence of social media.

The popularity of social media platforms such as Facebook and Twitter has created a new landscape where young people encounter and are influenced by content about alcoholic beverages. Globally, Millennials drive the demand for various champagne varieties, which is expected to positively impact the global market growth during the forecast period.

The Champagne market sees growth driven by disposable income and a taste for luxury champagnes. Product innovations focus on organic, vegan-friendly ingredients, appealing to health-conscious consumers. Online retailing platforms like Drizly and airport expansions in India boost import-export potential. Bars, restaurants, and wine-focused establishments like Ruinart Champagne leverage friendly packaging, such as recyclable paper cases, for ice bucket chilling without compromising wine's integrity. Premiumization trends in Germany and the European area contribute to rising value sales. Health-friendly attributes like gluten-free and low-carb options cater to diverse diets. While sparking wine enhances celebrations and business meets, flavored champagnes pose risks of overconsumption and associated side effects.

Marketing Strategies in the Champagne Industry

In the competitive industry, effective marketing strategies play a pivotal role in establishing a strong market presence. Businesses often focus on diverse economies, including Mexico, Belgium, and the United Kingdom, tailoring their approaches to suit each market's unique demands. Leveraging the popularity of specific varieties like Chardonnay and Blanc de Noirs forms the basis of targeted campaigns. Companies, such as Lanson-BCC, engage in innovative marketing, ensuring a robust global business reach. By understanding the preferences of diverse consumer groups, tailored marketing initiatives pave the way for successful penetration and sustained growth in the dynamic and evolving market.

Key Trends 

The increasing prominence of private-label brands is the key factor driving growth. Private labeling is one of the fastest-growing sectors in modern wine production, where a company produces wines and another firm does its branding, marketing, and sales. Earlier, private-label wines were affordable, but over time, with the changes in consumer and market behavior, the prices have now changed drastically. Sales have grown significantly past year. As of now, the sellers of private-label like Aldi and Lidl are winning awards for impressive quality at major international competitions.

Furthermore, new countries like China, Spain, Chile, and Australia are also emerging as major players, and with the increase in demand, many wines coming from lesser-known regions and making their mark can be seen. Hence, with the new products in the market, many private label companies will emerge, and this trend will propel the growth of the global market during the forecast period.

Future Outlook and Growth Prospects

The future outlook for the champagnes market is promising, driven by increasing disposable income in key regions such as Japan, South Korea, Thailand, Indonesia, and the United States. A comprehensive study suggests a notable growth rate, with consumers in these countries showing a growing affinity for champagnes on various occasions. The demand is not only a symbol of celebration but also a reflection of changing lifestyles and preferences. As disposable incomes rise, particularly in emerging markets like Thailand and Indonesia, is likely to witness significant growth, making it a lucrative industry with global prospects.

Key Challenges

Rising competition from other alcoholic beverages is a challenge that affects market growth. One of the main causes for the increased prices is the growing inflation and the supply shortage. The other alternative sparkling wines are the increasing competition for brands. The high prices led to a change in consumer behavior to opt for other alternatives.  

In addition, the rising demand for prosecco, a sparkling alcohol mainly produced in the Veneto region of Italy, is experiencing significant growth in terms of sales, whereas the sales have been slowing. Furthermore, other non-alcoholic spirits like wine and beer are also in demand from the millennials and GenZ generation. The growing preference for other alcoholic beverages amongst consumers may impede the growth of the market during the forecast period.

Regional Overview

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Leading Champagne Brands and Houses

The market refers to the production, distribution, and consumption of sparkling wine from the Champagne region in France. The market is heavily regulated, ensuring that only wines produced in the region can be legally labeled as Champagne. It is typically made from three grape varieties: Chardonnay, Pinot Noir, and Pinot Meunier.

Some significant players include GH Martel, Laurent Perrier, Louis Roederer, Nicolas Feuillatte,  Piper Heidsieck.

The market trends and analysis report also includes detailed analyses of the competitive landscape and information about 15 market champagne companies, including:

Taittinger CCVC,  Veuve A.Devaux, Constellation Brands Inc., De Castellane, E. and J. Gallo Winery, F. Korbel and Bros, Joseph Perrier, Krug Champagne, LANSON BCC, LVMH Moet Hennessy Louis Vuitton SE, Veuve Clicquot Ponsardin, Pernod Ricard SA, Remy Cointreau SA, THIENOT SAS Co., and VRANKEN POMMERY MONOPOLE

Market Analyst Overview

The market thrives as a symbol of achievements and joyous special occasions. From elegant dinners to lively office parties, champagne adds a touch of sophistication to any event. Its versatility caters to both formal celebrations and casual drinking moments alike, making it a staple in food service restaurants and social gatherings. With a wide range of vintage wines available, connoisseurs can indulge in unique flavors and aromas, perfect for marking birthdays and commemorating milestones. As the demand for premium sparkling wine continues to rise, the Champagne Market remains resilient, evolving to meet the diverse preferences of consumers worldwide, ensuring that every sip is a toast to life's unforgettable moments.

The Champagne market thrives on nightlife, peer approval, and milestone celebrations, with demand influenced by diverse drinking habits globally. While casual meetings often see champagne enjoyed in small quantities, overall sales reflect its popularity worldwide, despite varying customs and religious practices that might view alcohol consumption as taboo. Strict regulations ensure the production of quality champagne, with grape varieties like Pinot Noir and Chardonnay dominating. France leads as the chief exporter, with key brands using branding and advertising to target elite consumers and increase sales. Despite travel restrictions impacting consumer willingness in regions like the United Kingdom, champagne remains a symbol of luxury and shared success, driving its demand in regional markets.

Segment Overview

The growth analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 -  2028. 

• Distribution Channel Outlook 
  • Offline
  • Online
• Price Range Outlook 
  • Economy
  • Mid-range
  • Luxury
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	157
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6%
Market growth 2024-2028	USD 2.51 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	5.52
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 35%
Key countries	US, China, Germany, Italy, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	GH Martel,  Laurent Perrier, Louis Roederer,  Nicolas Feuillatte, Piper Heidsieck, Taittinger CCVC,  Veuve A.Devaux, Constellation Brands Inc., De Castellane, E. and J. Gallo Winery, F. Korbel and Bros, Joseph Perrier, Krug Champagne, LANSON BCC, LVMH Moet Hennessy Louis Vuitton SE, Veuve Clicquot Ponsardin, Pernod Ricard SA, Remy Cointreau SA, THIENOT SAS Co., and VRANKEN POMMERY MONOPOLE
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, Market condition analysis for forecast period
Customization purview	If our market 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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What are the Key Data Covered in this market research and growth report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of companies

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