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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. This demographic's interest in a wide range of alcoholic beverages, including champagne, is propelling market growth. Notably, alcohol consumption among Millennials is highest in North America, influenced by an expanding multicultural consumer base and the pervasive impact of social media.
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The Offline segment was the largest segment and was valued at USD 4.99 billion in 2018. Champagne is most frequently distributed offline through specialty shops, hypermarkets, supermarkets, 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 Tesco Plc (Tesco), Carrefour SA (Carrefour), 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.
Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Germany, Italy, and France are the key markets in Europe. The European region dominates the global market and is expected to maintain its position during the forecast period due to the origination of champagne from Europe. Germany, Italy, and France are among the largest consumers. 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.
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. Alcohol consumption among Millennials is high in North America compared with that in other regions. The interest in alcoholic beverages is mainly driven by the expanding multicultural group of consumers and the growing influence of social media.
The popularity of social media websites like Facebook and Twitter has increased recently, creating a new environment where young people are exposed to and influenced by content relating to alcoholic beverages. Globally, Millennials account for a majority of the demand for different varieties of champagne, which will have a positive impact on the growth of the global market forecasting period.
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.
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.
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.
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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
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 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.
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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