Wine Market Analysis Report by Type, Material, Application, Region and Segment Forecasts, 2028

Wine Industry Overview

The global wine market size was valued at USD 417.85 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. The rising adoption of wine among all age groups from the young generation to the old age population across the globe is the key factor for market growth. The COVID-19 pandemic has disrupted the global wine distribution channel due to the extensive closure of and restrictions on hotels and restaurants across the world. The sudden outbreak of pandemic has affected around 77% of hotels, with turnover falling by 60% across the sector, while restaurants saw sales down by 91% by the end of 2020 across the globe. Meanwhile, there has been a sudden change in the purchasing behavior of consumers. With restaurants, hotels, and bars shut or running on limited capacity, consumers have turned to food retailers as well as online portals to shop for the product. Direct-to-consumer sales have also benefited from this shift in consumer behavior, with specialist wine trade also reporting some increase in sales.

Wine is an integral part of European cultures and this cultural trend is increasingly gaining popularity in various other parts of the world including Asian countries. The young and working-class people in these regions are including wine in their diet, house parties, and occasional drinks. These consumer trends are expected to fuel the market growth over the forecast period.

Gather more insights about the market drivers, restraints and growth of the Global Wine Market

The increasing consumption of wine among consumers has been acting as a major driver for the industry. According to a study promoted by the European Association of Wine Economists and the Chaire Vins et Spiritueux de INSEEC U., in May 2020, the frequency of the consumption of wine has increased significantly during the confinement phase resulting from the outbreak of coronavirus in Spain and the rest of Europe.

At the retail level, consolidation is occurring in both restaurants (on-premise) and in supermarkets (off-premise). Smaller brands have a harder time gaining placement on the shelves and on wine lists because the head office may choose a few brands to use in all of their locations. Supermarkets account for a substantial market share. So, the consolidation of these chains is relevant to the industry.

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Wine Industry Segmentation

Grand View Research has segmented the global wine market on the basis of product, distribution channel, and region:

Wine Product Outlook (Revenue, USD Billion, 2016 - 2028)

• Table Wine
• Dessert Wine
• Sparkling Wine

Wine Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2028)

• On-trade
• Off-trade

Wine Regional Outlook (Revenue, USD Million, 2016 - 2028)

• North America
• Europe
• Asia Pacific
• Central & South America

• MEA (Middle East & Africa)

Market Share Insights:

July 2020: Constellation Brands acquired Empathy Wines, a direct-to-consumer wine brand, with the aim of winning space on digital shelves.

Key Companies profiled:

Some prominent players in the global Wine Industry 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

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Wine Market Growth Factors, Key Development Strategies, and Trends

The Global Wine Market is subject to witness a substantial growth due to the rising penetration of the wine based on increasing popularity between consumer and lower percentage of Alcohol by Volume (ABV). Factors responsible for sustained market growth, in the recent years, are easy availability of wide range of wine products with differential flavors consisting of various categories and price range such as premium, and luxury wines.

Increasing production in the North America region is expected to favor the market growth in the upcoming years as well. Globally, the wine market is predicted to grow at high CAGR over the forecast period, providing numerous opportunities for market players to invest in research and development in the wine market.

Additionally, increasing demand for wine due to presence of online retail stores and e-commerce retailers, which allows small and mediums-sized businesses to reach wider audience, thereby driving market growth. Favorable laws and regulation and strong economic growth in the developing economies across the globe are anticipated to drive the growth of wine market in the upcoming years.

Easy availability of wine due to rising penetration of supermarkets, hypermarkets, retail stores and e-commerce retailers is predicted to boost market demand for wine products in the years to come. In addition, increasing consummation of wine from cinemas, bookstores and car washing stations alongside large-scale grocery stores such as Kroger, Wegmans, and Whole Foods serve food and on premise wine is projected to expand market reach for wine industry during the forecast period.

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The recent technological advancement in the manufacturing of wine and development of novel products and technique such automated machinery, which increasingly adopted during different phases of the harvesting and production procedures, particularly in the large production houses, thus triggering market growth, in the recent years.

In addition, increasing adoption of agriculture technology (ag-tech) in order to utilize water and electricity effectively, rising implementation of drones to irrigate crops and thermal & GPS imaging to gather information on each aspect of grapevine physiology is expected to positively influence market growth in the upcoming years. Improved quality of the product due to early adoption of agriculture technology (ag-tech) is likely to improve the product quality. Common primary materials needed for production of wine include grapes and water.

However, changing market prices of grape supplies due to reduced production or oversupply are expected to hamper market growth to a certain extent. Moreover, fluctuation in the prices of grapes are caused by unfavorable climates changes and agriculture policy changes, leading to significantly affecting the operational and manufacturing cost.

Manufacturers are facing extreme challenges because of the undesirable currency exchange rates and high logistics cost coupled with increase in the import costs. These factors are significantly affecting overall market performance in the last few years. Table wines is considered as one of the fastest growing segment in the wine market with substantial revenue generation in the last couple of years. Growing popularity of the table wine market segment is attributed to lower prices in comparison with its counterparts.

The wine market is divided by region as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the rise in the implementation of latest technologies in the production of wine, the high cost & availability of raw materials and existence of well-established manufacturing sector in the region. Asia-Pacific region is predicted to hold major market share in the wine industry with massive growth in forecast period.

Countries such as India, China and Singapore are leading the Asia-Pacific market with presence of large consumer base, increasing popularity of wine, rising personal disposable income, and significant investment by leading industry players considering potential growth opportunities in the region. The key players in the wine market are Wine Group, Constellation Brands U.S. Operations, Inc., E. & J. Gallo Winery, Treasury Wine Estates, Sula Vineyards Pvt. Ltd., Woolworths Ltd., and Total Wine & More.

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