The global wine market is engaged in the production, distribution, and retail of wine around the world. Wine is made from fermented grape juice and comes in various styles like still, sparkling, fortified, and dessert. Red wine is made from dark-colored grape varieties, while white wine is made from lighter-colored grape varieties. The global wine market is expected to grow exponentially in the coming years due to the increasing popularity of premium and craft wines among millennials and generation Z consumers. Premium and craft wines offer new flavors, styles, and experiences to the consumers which has boosted their demand globally.
The global wine market is estimated to be valued at US$ 2971.13 Bn in 2023 and is expected to exhibit a CAGR of 30.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. The market is segmented on the basis of product type, distribution channel, and region. By product type, the market is categorized into still wine, sparkling wine, dessert wine, and fortified wine. On the basis of distribution channel, the wine market is divided into supermarkets and hypermarkets, specialty stores, online channels, and others.
Market Dynamics:
Growing popularity of premium and craft wines (as mentioned in the heading) is a key driver propelling the growth of the global wine market. Premium and craft wines are made in limited quantities by small production houses which offer new flavors, styles and experiences to the consumers. Their exotic flavors and artisanal production processes have attracted millennial and generation Z consumers globally. This has boosted the demand for premium and craft wines significantly. Another driver for the wine market is rising socializing and celebrations occasions. Wine is often consumed during social gatherings, parties, and celebrations to enhance the festive experience. Increase in disposable income and celebration occasions has positively influenced the consumption of wine globally.
Segment Analysis
The wine market is segmented into still wines, sparkling wines and dessert wines. Among these, still wines dominate the market with over 80% share owing to their easy consumption and lower price point. Still wines are further classified into red, white and rose variants with red wines constituting over 50% share of still wines due to increasing health consciousness among consumers.
PEST Analysis
Political: wine industry is regulated by governmental organizations that set standards for production and distribution. Recent trade deals have opened new export opportunities for wine producers.
Economic: rising disposable incomes in developing nations have increased affordability of premium wines. However, economic uncertainties could impact consumer spending on non-essential items.
Social: changing lifestyles and social trends have increased wine consumption, especially among millennial population. Health benefits associated with moderate wine consumption are driving greater social acceptability.
Technological: innovations in winemaking techniques like temperature controls allow production of high quality wines in different geographies. Advancements in packaging like lightweight bottles aid sustainability. Application of blockchain provides traceability.
Key Takeaways
The Global Wine Market Growth is expected to witness high over the forecast period led by increasing social acceptance of wine consumption in developing countries.
The European region currently dominates the market owing to the large cultivable land and high per capita consumption in countries like Italy, France and Spain.
North America is the second largest regional market for wine driven by strong economic recovery and presence of major producers in USA and Canada. Countries like China, India and Brazil are forecast to be the fastest growing regional markets in Asia Pacific and Latin America supported by rising disposable incomes, changing lifestyles and growing experimental young population.
Key players operating in the wine market are Semtech Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd., Comcast Corporation, Hewlett Packard Enterprise, NETGEAR Inc., TEKTELIC Communications Inc., Kerlink, Embit S.R.L., IMST GmbH, Aaeon Technology Inc, Laird Connectivity, Multi-Tech Systems Inc., Loriot SAS, Link Labs Inc., Senet Inc., WI-SUN Alliance, Actility S.A., The Things Industries B.V., Libelium Comunicaciones Distribuidas S.L. These players are focusing on new product launches and partnerships to strengthen their presence across various regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
