Wine is an alcoholic beverage made from fermented grapes or other fruits. Red wine, white wine, rose wine, sparkling wine, and dessert wine are some of the major types of wine consumed globally. Wine production involves grape harvesting, crushing, fermentation, aging, bottling, and marketing. Vineyards, winemaking facilities, packaging lines, distribution networks, and retail stores are some of the key components of the global wine industry value chain. Wine is consumed for social as well as health purposes due to its antioxidant properties. It is also used in culinary applications and religious rituals in some parts of the world. The growth of social drinking activities across pubs, restaurants, and parties has boosted the consumption of wine globally.
The global wine market is estimated to be valued at US$ 3422.75 billion in 2024 and is expected to exhibit a CAGR of 30% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights. With rising disposable incomes and changing lifestyles, wine consumption has increased significantly in developing nations. The growing preference for premium wines with unique flavors and high-quality packaging is also fueling the market growth.
Market Dynamics:
The market is expected to witness significant growth due to two major drivers – the rising social drinking activities and growing preference for premium wines globally. As young population prefers socializing over weekends at pubs, bars, and lounges, the consumption of wine has increased substantially during festivities, parties, and get-togethers. According to a survey, over 62% of millennials consume wine or cocktails every weekend due to increasing social life. The rising number of specialty wine stores, online retail channels, and innovative packaging solutions has made premium wines more accessible to consumers. This has boosted the demand for high-quality wines made from distinctive grape varieties and terroirs. The premiumization trend in the wine industry is thus expected to continue driving the market growth over the forecast period.
Segment Analysis
The wine market is dominated by the still wine segment which holds around 80% share. Still wine includes both table and grape wine. They are consumed on a regular basis and have wide acceptability. Their mass production and lower prices have made them highly popular across regions. Sparkling wine is the fastest growing segment and is expected to witness high demand especially from Asia Pacific region where celebrations and occasions frequently involve consumption of sparkling wine.
PEST Analysis
Political: The wine market is highly regulated with regulations around production, distribution, packaging and labelling. Trade policies and tariffs also impact wine imports and exports between countries. However, few countries have relaxed rules to boost local wine industry.
Economic: The economic growth and rise of middle class in developing nations is a key driver as they increase spending on premium beverages and experiences. Recession can impact luxury spending including on expensive wine varieties.
Social: Changing social trends like health consciousness and awareness is boosting demand for wine with lower alcohol content. Social media also plays a significant role in introducing new consumers to wine culture.
Technological: Advanced technologies are being used in vineyards for viticulture management as well as in production and aging processes. Technologies help achieve consistency and quality across batches. Traceability solutions enable tracking wines right from source to table.
Key Takeaways
The Global Wine Market Size is expected to witness high growth.
Regional analysis: North America dominates currently due to high per capita consumption especially of red wine varieties in USA and Canada. Asia Pacific is fastest growing market led by China, India with increasing spending power and exposure to western luxury brands.
Key players operating in the wine market are E & J Gallo Winery, The Wine Group, Constellation Brands, Castel Group and Accolade Wines. E & J Gallo Winery leads the market with wide product portfolio and strong distribution network across USA. The Wine Group has established itself as a leading producer and seller of everyday wines in key American and international markets. Constellation Brands has established foothold in wine production, marketing and distribution through strategic acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
