MARKET OVERVIEW- GLOBAL WINE MARKET
Wine is an alcoholic beverage typically made from fermented grape juice. The process involves the fermentation of the fruit with water and sugar. Most wine varieties are made with grapes, but it can technically be made from other fruits too, such as apples, blueberries and strawberries. An increase in per capita income, and rising urbanization along with the adoption of western culture are major factors anticipated to drive the growth of the market during the forecast period. Also, increasing demand of wine due to its health benefits along with the growing premiumization of wine products is anticipated to provide lucrative growth opportunities for key market players during the forecast period.
MARKET DRIVERS
The growth of the market is primarily driven by the rise in per capita income along with rising urbanization around the globe. According to the Indian National Statistical Office, the estimated annual per capita (net national income) at current prices for 2022-23 stands at Rs 1,72,000. This marks a growth of around 99 per cent from Rs 86,647 in 2014-15. An increase in per capita income has led to a rise in urbanization and subsequently the adoption of western culture. Wine is a key part of European cultures and this cultural trend is increasingly gaining popularity in various other parts of the world including many Asian countries. Therefore, the adoption of western culture is a major factor which is anticipated to drive the growth of the market during the forecast period. Also, nowadays, young people are introduced to alcohol consumption at an early age. This happens first through the media and advertising or in the family. Alcohol is a natural component of many social occasions. Adolescents gradually grow into this accepted culture of enjoying alcohol on social occasions. Therefore, a rise in alcohol consumption among young people is anticipated to further drive market growth over the estimated time period.
MARKET OPPORTUNITIES
The market is expected to have a new opportunity with an increasing demand wine due to its health benefits. Researchers suggest that red wine’s high concentration of polyphenol antioxidants can help reduce your risk of high blood pressure, high cholesterol, and metabolic diseases. It can also help in reducing blood pressure in people with high blood pressure, which may reduce the risk of heart disease Thus, a health benefits associated with wine are expected to have a positive impact on the growth of the market.
MARKET RESTRAINTS
An excessive consumption of alcoholic beverages, including wine, can cause various health-related issues. It may negatively impact the growth of the market. Also, several organizations are launching campaigns against alcohol consumption prevent the growing incidence of alcohol abuse and alcohol-related accidents, especially among the It is expected to restrain the growth of the market over the forecast period.
MARKET GROWTH CHALLENGES
An increase in consumption of alcohol has propelled several manufacturers to develop many innovative alcoholic beverages. This has led to a rise in consumption of other alcoholic beverages like beer, spirits, liqueurs etc. Thus, the presence of alternative alcoholic beverage options is expected to be a major challenge for the market growth over the forecast the period.
CUMULATIVE GROWTH ANALYSIS
The report provides in-depth analysis of the Global Wine market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. An increase in per capita income, and rising urbanization is anticipated to stimulate the demand for wine and due to this factor, the market is expected to witness the growth at a specific CAGR from 2023-2029.
WINE MARKET SEGMENTAL OVERVIEW
The Global Wine market comprises of different market segments like type, flavour, distribution channel and geography.
WINE MARKET BY TYPE
By type, the Global Wine market includes key segments like
Still wine is anticipated to lead the market over the estimated time period. Still wines are obtained through the natural alcoholic fermentation of the must (i.e. the juice of the grape). It is one of the most popular varieties of wine consumed around the world. This is expected to drive the growth of the segment. Also, the launch of new still wines are anticipated to fuel the growth of the market. For instance, in April 2021, Freixenet extended its inventory of still wines to draw demand from its new consumers.
Sparkling wine is predicted to witness high growth over the forecast period. Sparkling wines are distinguished from the normal ones by an increased level of CO2, which makes them acidified due to the natural fermentation process. It offers unique sensational properties and are therefore increasingly preferred by many consumers. It is expected to boost the growth of the segment.
WINE MARKET BY FLAVOUR
By colour, the Global Wine market includes segments like
Red wine is expected to dominate the market over the forecast period. Red wine is made by crushing and fermenting dark-coloured, whole grapes. Consuming moderate amounts of red wine has been shown to have health benefits. This is mainly due to its high content of powerful antioxidants. Thus, health benefits associated with red wine are expected to drive the growth of the segment.
White wine is expected to witness high growth over the projected time period. Although not as extensively studied in comparison to red wine, white wine does have some positive health attributes. In fact, some researchers have shown that white wine has its own unique roster of health-boosting chemicals and antioxidants that sets it apart from red wine.
WINE MARKET BY DISTRIBUTION CHANNEL
The Global Wine market includes major distribution channels like
The offline segment is estimated to lead the market during the forecast period. Offline distribution channels include specialty stores, supermarkets and hypermarkets, and others. They offer different varieties of wine at a lower price compared to restaurants, pubs, and others. It is expected to drive the growth of the segment.
The online segment is expected to grow at the fastest rate over the forecast period. The rise in acceptance of the e-commerce industry for purchasing consumer goods and groceries owing to the internet penetration is a major factor driving the growth of the segment.
WINE MARKET BY GEOGRAPHY
The Global Wine market is studied for the following regions
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
Europe is projected to lead the market during the forecast period. Rise in import of wine by several European nations due to high per capita wine consumption is a key factor driving the growth of the market in the region. European nations like Portugal, Italy, and France have the highest per capita wine consumption per year.
Asia Pacific region is expected to witness high growth over the projected time period. An increase in disposable income and rapid urbanization have led to a rise in wine consumption in the region. According to Korea Agro-Fisheries & Food Trade Corp survey on the frequency of consuming Korean wine in South Korea in 2021, roughly a third drank Korean wine one to two times during the first six months of 2021 and around 22.4 percent stated that they drank it once a month. Thus, rise in wine consumption is anticipated to drive the growth of the market.
COVID-19 IMPACT ANALYSIS ON GLOBAL WINE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors on the global Wine market. In addition, a complete analysis of changes in global Wine market expenditure, economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP and marketing strategies of key players present in the market.
The COVID-19 pandemic has significantly affected the growth of the market. The forced closure of on-trade wineries in various countries, such as the United States, the United Kingdom, and India have negatively impacted the growth of the market. But, during the COVID-19 pandemic, online sales channels have witnessed strong growth due to a variety of applications and stay-at-home regulations. According to the International Organization of Vine and Wine (OIV), online wine sales spiked during the pandemic in 2020. This is anticipated to provide new growth opportunities for key players operating in the market in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Global Wine market is majorly focused on expanding the global growth of Wine industry with new product innovation, and business expansion. An increasing a range of manufacturers operating in wine sector has led to growing demand for the market. Besides, the market offers a range of products in different application to fulfil the required demand of consumers which further contributes to healthy growth in the market.
The key players studied in market are
- The Wine Group
- Bacardi Limited
- E. & J. Gallo Winery
- Pernod Ricard
- Treasury Wine Estates Limited
- Constellation Brands Inc.
- Bronco Wine Company
- Beijing Yanjing Beer Group Corporation
- Accolade Wines
- Pernod Ricard
- Asahi Group Holdings, Ltd
- Foley Family Wines
- Lagfin SCA
- Madeira Wine Company SA
- Castel Group
- Miguel Torres S. A
- Sula Vineyards Pvt. Ltd
- Symington Family Estates
- Compagnia del Vino
RECENT DEVELOPMENT:
May 2022: Juvé Camps partnered with Nimbility (a Hong Kong-based market expert and export management company) to expand its presence in the Asia Pacific region, especially with an initial focus on Greater China and South Korea.
April 2021: Constellation Brands launched a new business unit for fine wine and craft spirits. The new fine wine and craft spirits include High West Whisky, Casa Noble Tequila, Mi Campo, Copper & Kings, Nelson's Green Brier Distillery, and The Real McCoy.
