Wine Market Size, Share & Trends Report

Wine Market Size, Share & Trends Analysis Report By Product (Table Wine, Dessert Wine, Sparkling Wine), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-353-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 105

Report 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.

Global wine market size, by product, 2016 - 2028 (USD Billion)

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.

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.

Product Insights

Table wine held the largest share of more than 84.0% in 2020 and is expected to maintain its lead over the forecast period. Being inexpensive and easily accessible through retail, table wines often find preference among new consumers of the product. With the changing lifestyles, there has been a shift in alcohol consumption-from hard liquor to mild alcoholic beverages, such as beer, wine, and seltzers. This trend is a key factor in attracting new consumers and it consequently plays a role in the rising demand for the segment.

Sparkling wine is projected to register the fastest CAGR of 6.6% from 2021 to 2028. Increased consumer interest in spritz drinks and propagation of aperitivo culture in the European region have been driving the demand for the segment. In the U.S., leading brands such as La Marca Prosecco (E. & J. Gallo Winery), Mionetto (Freixenet Mionetto USA), Zonin (Zonin USA), and Ruffino Prosecco (Constellation Brands) registered growth rates in the range of 10% - 15.4% between 2017 and 2019.

Distribution Channel Insights

The off-trade segment held the largest share of 89.0% in 2020.The off-trade distribution channel includes retail outlets, supermarkets, and hypermarkets. With the ongoing pandemic, the off-trade distribution channel has seen more growth as compared to the on-trade channel. The lockdown propelled the demand for off-trade sales of wine. According to a report by IWSR Drinks Market Analysis in 2020, approximately 80% of alcohol sales in the U.S. were generated from the off-trade distribution channel, and the rest 20% sales were from on-trade.

Global wine market share, by distribution channel, 2020 (%)

The on-trade distribution channel segment is anticipated to register the fastest CAGR of 15.3% from 2021 to 2028. The growing party culture among the younger and working-class population across the globe is expected to boost the sales of the product through an on-trade sales channel. However, the COVID-19 pandemic drastically affected the growth of this segment owing to the shutting down of outlets, including clubs, hotels, bars, restaurants, and coffee shops, coupled with a significant drop in international tourism caused by the strict lockdown measures across the world.

Regional Insights

Europe held the largest share of over 46.0% in 2020.Europe is the most established market for wine with several countries such as Portugal, Italy, and France having the highest per capita wine consumption per year. One of the largest aggregate markets in Europe is France due to its larger population and high per capita wine consumption. Countries such as Germany and the U.K. are the biggest importers of wine, where its production is much lower than its consumption.

Asia Pacific is expected to register the fastest CAGR of 8.2% from 2021 to 2028. Asia Pacific is the third-largest consumer of wine in terms of volume, driven primarily by China, Japan, and South Korea. The region offers significant potential due to its large customer base, rising disposable incomes, and favorable climatic conditions for wine cultivation, especially in China.

Key Companies & Market Share Insights

The market is characterized by the presence of a few well-established players and several small and medium players.Mergers, acquisitions, and consolidations have been occurring among wineries worldwide.

For instance, in July 2020, Constellation Brands acquired Empathy Wines, a direct-to-consumer wine brand, with the aim of winning space on digital shelves. According to alcohol beverage compliance firm Sovos ShipCompliant, USD 3.2 billion worth of wine (6.6 Billion cases) was sold directly to consumers in 2019. Empathy’s e-commerce prowess will benefit the entire Constellation wine portfolio. Some prominent players in the global wine market 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

  • E. & J. Gallo Winery

  • Viña Concha y Toro

Wine Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 434.99 billion

Revenue forecast in 2028

USD 685.99 billion

Growth Rate

CAGR of 6.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; U.K.; France; Italy; China; India; Japan; Brazil; South Africa

Key companies profiled

Asahi Group Holdings, Ltd.; Beijing Yanjing Beer Group Corporation; The Wine Group; Castel Frères; Accolade Wines; Constellation Brands; Treasury Wine Estates (TWE); Pernod Ricard; E. & J. Gallo Winery; Viña Concha y Toro

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global wine market report on the basis of product, distribution channel, and region:

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

    • Table Wine

    • Dessert Wine

    • Sparkling Wine

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

    • On-trade

    • Off-trade

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

    • Europe

      • U.K.

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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