Wine Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, Canada, China, Germany, France - Size and Forecast 2023-2027

Wine Market Size and Forecast 2023- 2027

The global Wine Market market is projected to reach a value of USD 134.59 billion with a CAGR of 4.45% between 2022-2027. The growth of the market depends on several factors, including the increasing use of online sales channels, the increasing demand and production in the food industry, and the growing awareness of the health benefits. Additionally, the demand for organic and sustainable wines is increasing, reflecting changing consumer preferences.

The availability of online stores and online specialty stores, along with the convenience of online shopping offers consumers a wide range of choices. Europe is the largest market for consumption, followed by North America and Asia Pacific. Red wine accounts for the largest market share in terms of type. Online sales have been experiencing significant growth i.e increase by 25% in recent years. The demand for organic wine and sustainable wines is increasing, reflecting changing consumer preferences. These factors result in the growth rate of the industry.

Market Overview

The Market shows an Accelerate CAGR during the forecast period.

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Wine Market Dynamics

Market Trends

The increasing use of online sales channels is the key factor driving the growth of the global market. Consumers are more comfortable shopping online because they can compare prices. Increasing use of online channels for purchasing is like seltzers, hypermarket to drive the growth of the market over the forecast period. The market is a vibrant tapestry interwoven with events, recipes, diverse flavors, and unique bottles, appealing to the palate and fostering an appreciation for the craftsmanship and artistry behind every sip. The flavors into coffee or creating specialty cocktails, offering consumers a unique drinking experience.The industry is undergoing a significant transformation influenced by diverse factors that range from changing lifestyles to global economy shifts. The increasing prominence of private-label brands is the primary trend in the market. Private-label is becoming an important area for retailers around the world. Various retailers are selling different types under their own brands to increase their profitability, which contributes to the development of the market. Leading retailers around the world are launching their own brands to capitalize on the growing consumer demand. 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 wines under its own brand.

The development, the market is leveraging digital platforms like login home to reach consumers directly, creating personalized experiences and enhancing customer engagement. This digital shift plays a pivotal role in shaping the future of the industry, facilitating accessibility and convenience for consumers.The market operates within a multifaceted ecosystem, influenced by various elements such as production, export, and import dynamics. Suppliers play a crucial role in ensuring a consistent supply chain, while competitors continually strive to innovate and capture market share.

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 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 is expected to drive the market change in focus during the forecast period.

Current market trends reflect shifting consumer preferences across generations, with a focus on premiumization and unique selections. In Mexico, the majority of consumers are driving this trend, seeking something distinct. Despite economic restraints, the market adapts to the situation, emphasizing order and innovation to meet evolving consumer demands.

Future Outlook and Opportunities

• The growing population of wine enthusiasts worldwide and production, especially in emerging markets, is contributing to an increased demand for diverse grapes and unique table wines.
• Consumers are displaying a growing preference for high-quality, emphasizing the significance of the premium segment in the market. This shift in consumer behaviour is redefining the role of table wine, pushing wineries to innovate and offer diverse options to cater to varying tastes and preferences.
• One of the defining aspects is its intricate balance of flavors, including the level of acidity, which adds complexity and character to the drinking experience. This interplay of flavors and nuances contributes to the diverse market value of wines, ranging from everyday affordability to premium luxury options.
• Wine tourism is becoming more intertwined, with wineries offering immersive experience tours, enhancing visitors' understanding and appreciation for winemaking processes.As a result, this tourism took a hit in some regions, while alternative avenues like stories and facts shared via digital platforms became more prominent in engaging consumers.

Factors Affecting the Market

Rising competition from other alcoholic beverages is a major challenge to the evolution of the global market. The market faces increasing competition from other alcoholic beverages, which could hamper its development and popularity. Alternatives such as beer, wine and spirits and cocktails are available worldwide and are sometimes cheaper and more accessible than wine. Red wine accounts for 55% of the total consumption worldwide.

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 this. The evolving dynamics in alcohol sales and the emphasis on healthy diets are influencing consumer choices and challenging wineries to adapt by offering more diverse, health-conscious options. These factors, along with others, can make it challenging for the market to compete with other alcoholic beverages and maintain its elaboration and popularity, which will negatively impact the evolution of the market during the forecast period.

Types of Wine and Varieties

The market, tasting becomes an art, unraveling the nuances of each vintage. Knowledgeable sommeliers guide enthusiasts through the depths of the cellar, where each bottle holds a story shaped by aroma, oak aging, and meticulous fermentation. The unique expression of each varietal stems from the harvest and the influence of its terroir—the environmental factors shaping its character. The delightful bouquet of a well-aged Chardonnay or the vibrant zest of a Sauvignon exemplifies the diversity and richness within the market.

Production and Vineyards

The essence of harvesting is an art form entwined with the very soul of the vineyard's terroir. The careful selection of grapes during this crucial period influences the intricate bouquet and character of the final product. Expert sommeliers, versed in the nuances of tasting and vintage, oversee this process, ensuring the grapes are harvested at their peak to reflect the vineyard's unique essence. Once gathered, these grapes journey to the cellar, where the magic of fermentation and aging transforms them into liquid poetry, capturing the essence of the land and the passing years in each bottle. The interplay between terroir, grape variety, and the artistry of the winemaker manifests in the captivating vintages that grace the shelves of the market.

The boldness of a Cabernet Sauvignon or the finesse of an Italian varietal, the journey from the vineyards of California to the cellars echoes the dedication and hard work of artisan. Customer assistance and attentive service stand as hallmarks, as evident as the carefully crafted logo adorning each label. So, explore the digital cart, make a phone call for advice, or seek guidance about these exquisitely crafted items—the world of wine stands ready to captivate and delight.

Types in the Market

Specific grape varieties like Merlot have gained popularity, illustrating how certain areas have become synonymous with producing exceptional that resonate with global consumers. For instance, the allure of Champagne continues to captivate enthusiasts, embodying a legacy deeply rooted in a rich cultural heritage.

The increasing capacity for consumption and the rising middle class have contributed to the growth in this consumption and sales in these areas, warranting focused attention and strategic investments. The table wine segment also remains a significant part of the market, catering to a broader audience with diverse tastes and preferences. Its accessibility and versatility make it an essential component for overall growth demand, appealing to various cultures and preferences.

The market presents a diverse array of choices, from the allure of orange wines and the cultural significance of South Korea, appreciation to the culinary essence of cooking wine. Nations like China and Italy flaunt rich legacies, China excelling globally and Italy renowned for premium selections. Imported wines offer a taste of global vineyards. The term table reflects inclusivity, from everyday sips to special occasions. The market is a multifaceted industry that encapsulates a diverse array of preferences and consumption patterns, reflected in various industry statistics. From traditional favourites like red wine to unique varieties such as fortified wine, Port wines, and even innovative options like orange wines, the market caters to a broad spectrum of tastes and preferences. The increasing demand for imported wine in these regions signifies a shift in consumer preferences, driving both domestic and international producers to adapt and innovate. Cooking wine is an integral ingredient in various cuisines, enhancing flavours and adding depth to dishes, showcasing the versatile role that wine plays beyond just being a beverage. The experimentation with fruit varieties adds an innovative twist to the traditional wine landscape, appealing to an audience seeking new taste experiences.

Market Segment by Distribution Channel

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 varieties. 

The Off-trade segment was valued at USD 250.89 billion in 2017 and continued to grow until 2021.

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 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 it that takes place outside of bars, restaurants, or nightclubs. Due to its convenience, this distribution channel is popular with customers who prefer to buy wine and consume it at home. The sales through off-trade distribution channels are expected to increase significantly during the forecast period, owing to the proliferation of e-commerce portals and the rise of supermarkets, hypermarkets and department stores across the globe. 

Regional Analysis 

Europe is estimated to contribute 34% to the growth of the global market during the forecast period

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Europe is estimated to contribute 34% to the expansion 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 market and is anticipated to become one of the key markets during the forecast period.

For instance, countries like the United Kingdom and United States are witnessing a surge in its appreciation, driven partly by the influence of social media. This expansion is exemplified by regions like Napa Valley, renowned for its premium offerings, and even unexpected players like Ukraine, which are steadily making strides in the industry. The United States is the largest consumer, with an annual per capita consumption of 13 liters. Italy produces over 15% of the world and is the biggest exporter by volume. Sparkling wine sales have grown by 8% annually in the past five years. 

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 consumers. Asia-Pacific region is the fastest-growing market, with an annual growth rate of 7.5%. Moreover, in Europe, non-trade consumption of this is higher than on-site consumption. Demand for this is greatest among the elderly. This consumer segment prefers premium wines. India to the charming locales of Tuscaloosa, the global appreciation for a finely crafted Pinot Noir or the refined elegance of a delicate wine glass knows no bounds. In bustling urban centres like Vietnam and amidst the picturesque landscapes of Lucerne, wine enthusiasts partake in the delight of exquisite flavours and aromas.

During the COVID-19 pandemic, the manufacturing units in Europe were temporarily shut down under lockdown , and the demand could not be met. The global volume of its consumption continues to evolve, with significant shifts attributed to various factors, including the impact of the ongoing pandemic. However, in 2021, factories, warehouses, and other facilities of regional vendors reopened due to the large-scale COVID-19 vaccination drives carried out across Europe

Market Competitive Landscape and Market Share

The market refers to the buying and selling of this as a commodity. France, Italy, and Spain are some of the largest producers and exporters in the world. The global market is estimated to be worth billions of dollars. Factors such as grape variety, region, and aging process affect the price and value of this. Online platforms have become popular for purchasing and exploring different types.

The competitive landscape of the market, particularly in Spain and Latin America, has evolved significantly on the basis of cost, generation, and premiumization trends. The lockdown measures, experienced globally, including in Spain and Latin America, have influenced consumer behaviors, impacting incomes and preferences. Premiumization remains a key driver, with consumers increasingly inclined towards higher-quality and unique selections.

Research needs in the industry have intensified, reflecting the demand for data-driven insights to navigate market dynamics. In this context, associations play a pivotal role in shaping the market, fostering collaboration, and addressing challenges. Volume growth is a critical metric, and market players are strategically positioning themselves in emerging markets such as Japan, the Philippines, and South Korea. Understanding and adapting to the diverse preferences within these regions is essential for gaining market share and sustaining evolution in the evolving market landscape.

Consumer Demographics and Preferences

The market is witnessing a transformative phase, where traditional practices converge with modern trends. The statistics related to its consumption and preferences provide valuable insights into emerging trends and consumer behaviour.

The global industry is a vibrant tapestry woven with various threads—ranging from changing consumer interest to regional cultures and evolving diet preferences. It's an arena where numerous elements, such as age groups, alcohol sales, wine corks and pricing, interplay to shape consumption patterns and market dynamics. Sharing a bottle among friends, exploring new flavours, and appreciating the nuances of different grapes and regions contribute to the social and cultural significance.

Red wine involves a blend of precise ingredients, balancing sugar, and a variety of flavors derived from fruits. From the initial crush to the fermentation process in the bottle, each step contributes to a unique recipe. Sharing this experience with friends at social events heightens the enjoyment, whether exploring new recipes or savoring classic French or Italian blends. The choice of grapes determines its's sweetness and acidity, crucial elements that impart character and define its color. Whether capturing moments for Instagram or simply relishing the intricate notes in every sip, a well-crafted wine offers an unforgettable experience that's more than just a beverage – it's an artful article in every glass. Adapting to changing market trends and consumer behaviours while preserving the essence of it's culture is pivotal for sustained success in this ever-evolving industry

Key Companies

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

• 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.
• Vina Concha y Toro SA

The market operates in a dynamic landscape shaped by various factors, including population demographics, competitive forces from competitors, and the strategies implemented by companies operating within this sector.The interest in dessert wine has seen a resurgence, appealing to a wide spectrum of consumers across different income brackets and locations. This diversification in taste preferences has prompted wineries like Constellation Brands and Castel Frères to explore unique varieties to cater to this growing segment, aligning with shifting consumer interest and demands.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook (USD Billion, 2017 - 2027)
  • Off-trade
  • On-trade
• Product Outlook (USD Billion, 2017 - 2027)
  • Red
  • Fortified
  • White
  • Sparkling
• Region Outlook (USD Billion, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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	USD 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 Companies, Market Positioning of Companies, 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, Market condition analysis for 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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What are the Key Data Covered in the Market Research Report?

• What is the forecasted future growth of the market?
• What is the market share of different types in the market?
• What are the major regions driving the growth in the market?
• What is the consumer demand for organic or sustainable in the market?
• What is the impact of COVID-19 on the market size and consumption?
• Where can I find the latest statistics on the market size?
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• 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 behavior
• Growth of the market industry across Europe, APAC, North America, 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 market companies

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