The market is valued at USD 287.39 billion in 2016 and is expected to reach USD 402 billion by 2023, at a 5.8% CAGR during the forecast period 2018 - 2023. The wine market is huge, largely dominated by the European and North American countries. The USA, France, Italy, and Spain are the largest producers and consumers of wine. In the international trade, the European region has more than 50% share of the global wine trade. Currently, there are about one million small and big wine makers globally and the world’s most famous brands (around 84%) are French. The wine consumption is declining in the traditional markets. It is growing rapidly (x4 since 2000) in the Asian markets. Asia-Pacific accounts for 16% of value of global wine imports.
Wine Market Dynamics
The global wine market is driven by the consumption habits of wine, rapid urbanization, the changing lifestyles and high disposable incomes, and popularity of wine products during social celebrations and aging population preferring wine over hard drinks. Another important growth driver of the market is the increasing wine production in developing countries and new markets. The consumption of wine is increasing around the globe, and it is mainly due to the increasing consumption of wine by the younger generation.
Heavy taxation and legal regulations by governments and availability of other substitutes for wine would create a hindrance for the growth of the market. The growing popularity of craft beer and spirits are also a major restraining factor. The craft beer category has grown by 500% in value over the last ten years and quadrupled its market share in that same timeframe in North America. The major opportunities in wine market identified in the sector are innovative wine products with different flavors and growing demand for wine in the non-traditional market.
Rare wines will continue to be the most sought-after vintages. Because they are decreasing in quantity and finite, they are now chased by a global clientele. While Bordeaux and Burgundy Vintage Wines are the focus of most fine wine investors, many emerging markets are starting to come online. Innovation in wine products with flavored wine is also a huge opportunity for the companies for investment.
Wine Market Segmentation
The global wine market can be segmented into five categories - by taste, by wine style, by color, by body type, and by geography. In the taste type, wine can be classified into dry, medium, and sweet wine. By wine style, wine market can be segmented into still wine, sparkling wine, dessert wine, and fortified wine; wherein still wine accounts for most of the market share. Sparkling wine consumption is expected to experience the highest growth as a celebration wine. The major wine types as per color are red wine, white wine and rose wine. The market is further segmented by body type into light, medium and heavy. Still wine and sparkling wine are the two main segments of which still wine accounted for more than 83% of the total market in 2015. In 2015, red wine accounted for over 54% of volumes consumed globally; white wine for 37% and rosé just 9 %.
Wine Market Regional Analysis
By region, the European Union is a market leader in wine production, consumption and trading, accounting for half of the market share. Italy, Spain, and France are the countries which account for half of the global wine production. North America is the other major region where the USA alone accounts for the highest per capita consumption of wine. The country has surpassed France as the world’s foremost wine consumer, with average annual consumption of 12 liters per person.
The US is the largest wine producer in North America. In the South American region, Argentina and Chile are the major producers and consumers of wine. Asia-Pacific is the fastest growing market for wine consumption, supported by the high adoption rate of Western culture & lifestyle, large population, and the largest growing middle-class households. China, Japan, and India are the big markets in this region. Africa is growing at a slow rate in wine consumption. South Africa is the largest market for wine in Africa.
Key Developments of Wine Market
2015 & 2016- E. & J. Gallo acquired small wineries to extend its market share in the wine market. In June 2016, Gik which is a Spanish company launched a new wine. The company claims that it is the world's first blue wine.
2016- Actor Tituss Burgess launched a new wine under the brand name Pinot Noir
September 2016- The partnership between the Botanic Gardens of South Australia, National Wine Centre, and Jacob’s Creek winemakers is launching a new botanic garden wine label, and the product is claimed to be world’s first wine produced solely from grapes grown within a botanic garden.
August 2017- Aldi launched its red sparklers in Fizz focused wine festival. The new fizz lines include two red sparkling wines, an “unusually refreshing” Shiraz from New Zealand, Fork and Spoon and a premium Lambrusco Graspa Rossa, along with an unfiltered South African Louisville Cap Classique Sparkling Chardonnay made using the traditional Champagne method. The remaining three sparklers include a Pata Negra Vintage Cava, an Austrian sparkling Goldeck Grüner Veltliner and a sparkling Sauvignon Blanc from Gardo & Morris.
Wine Market Competitive Analysis
The competition in global wine market is reported to be large, mostly in developed countries of North America and Europe, with static growth over the years. Around 43% of the global wine consumption is in the non-wine producing regions. It is because of a huge population-driven demand for wine products in such non-traditional wine consumption countries; all big brewers are growing their business in such regions. The market is fragmented because of the presence of several local and international vendors, a few players hold major shares. Wine vendors mainly compete on the basis of the portfolio, product differentiation, and pricing and are now concentrating on expanding their business in the market by setting up new manufacturing plants and introducing new products.
Multiple product launches, flavored, innovative product packaging and crafted wine products, huge marketing & promotional activities, and mergers and acquisitions with smaller level players have been strong business strategies for wine market growth. Companies are making acquisitions in order to improve their positions with the wholesalers and to gain entry into the new markets.
Key Players of Wine Market
- Concha y Toro
- Constellation Brands
- E&J Gallo
- Grupo Penaflor
- Johnnie Walker
- Treasury Wine Estates
- The Wine Group
Reasons to Purchase Wine Market Report
- Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
- Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
- Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
- 3 months analyst support along with the Market Estimate sheet in excel.
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- Value chain analysis
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1.1 Research Methodology
1.2 Definition of the Market
1.3 Report Description
2. KEY FINDINGS OF THE STUDY
3. MARKET OVERVIEW
4. MARKET DYNAMICS
4.1.1 Growing Wine Consumption in Developing Countries
4.1.2 Changing Lifestyle and Consumption Habits of Wine
4.2.1 High Taxation in Wine Business and Trade
4.2.2 Availability of Other Substitutes for Wine
4.3.1 Innovative Products with Flavored Wine
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 By Colour
5.1.1 Red Wine
5.1.2 Rose Wine
5.1.3 White Wine
5.2 By Product Type
5.2.1 Still Wine
5.2.2 Sparkling Wine
5.2.3 Dessert Wine
5.2.4 Fortified Wine
5.3 By Distribution Channel
5.3.2 Specialty Stores
5.3.3 Online Channel
5.4 By Body Type
5.5 By Geography
5.5.1 North America
5.5.4 South America
18.104.22.168 South Africa
6. Competitive Landscape
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Strategies Adopted by Leading Players
7. Company Profiles
7.1 Accolade Wines
7.2 Amvyx S.A
7.4 Gruppo Campari
7.5 Castel Group
7.6 Compagnia Del Vino S.R.L.
7.7 Treasury Wine Estates
7.8 Pernod Ricard
7.9 The Wine Group
7.10 Vina Concha Y Toro
7.11 Constellation Brands
7.12 E. & J. Gallo Winery
7.13 Grupo Penaflor S.A