The global market for Wine is projected to reach 30.4 billion liters by 2024, driven by its growing popularity as a lifestyle beverage ideal for casual and social drinking; growing demand for sparkling and premium wines; rise in dining out trends; and growing consumer interest in natural, organic, and fortified wines.
Wine, an alcoholic beverage that is traditionally produced from grapes, is basically a European drink that has expanded its addressable market to several new regions including Latin America, North America and Asia in recent decades. Wine, unlike other alcoholic beverages, has a large assortment of drinks to cater to the myriad beverage needs of recreational and enthusiastic drinkers. Prominent types of wines include still wines and sparkling wines, which account for more than 85% share of total volumes sales, with fortified wines, dessert wines, and non-grape wines being other major categories. Although principal production methods remain mostly the same i.e., partial or complete fermentation of grapes or other input materials (for non-grape wines), all these wines distinctly differ in taste, color, aroma and alcohol influence.
Closely reflecting the trend in the global alcoholic beverages sector, the world wine market demonstrated massive expansion in second half of the 20th century. While the efforts from traditional wine producers such as France, Italy and Spain have a greater role in growth of world wine market, increased role of new world countries such as Australia, Chile, and the US has also contributed to market growth on a major scale. However, the production as well as consumption of wine remained mostly lethargic during the past two decades. Maturity of the wine market in Europe, the largest producer as well as consumer, and lack of any massive increments in wine production and consumption in new world markets such as the US, constitute the key factors for overall sluggish growth in the global wine market in recent decades. However, current growth in the global wine market remains positive and the trend is likely to continue in the coming years as well. Availability of a diverse range of beverages, publicity as good-for-health beverage, growing popularity as a trendy and stylish drink, and launch of new and innovative products by wineries around the world would enable the wine market to stay afloat. At the same time, rising demand for new world wines and established image of old world wines among drinkers would facilitate market momentum.
Still wines are widely served along with food in restaurants in countries such as Spain, France, Italy and the US. Amid growing concerns over consumption of beverages with high alcohol content, low alcohol beverages are gaining immense attention and sparkling wine, being one such beverage, is benefiting from the trend. Wine packaging format underwent significant diversification in recent years. While wine is traditionally packaged in glass bottles with cork or metal closures, other types of packaging such as plastic pet bottles, metal cans, liquid cartons, and bag-in-box are making inroads into wine packaging domain. Such packaging innovations are mainly being influenced by wineries' intention to present their products in novel methods.
Wine being a largely European drink, Europe represents the largest market accounting for over half of global wine consumption. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 4.3% over the analysis period, led by factors such as westernization of food habits among the expanding base of affluent middle class population; growing awareness supported by the launch of wine trade shows; development of wine logistics trading, and retailing infrastructure; rise of China among the top five global producers of grape wine; and cultural changes that encourage a taste for wine among the locals.
Key players in the market include Accolade Wines Australia Ltd., Bacardi Ltd., Brown-Forman Corp., Cantine Riunite & CIV S.C.Agr., Castel Group, Caviro s.c.a, Codorniu, S.A., Constellation Brands, Inc., E. & J. Gallo Winery, Freixenet S.A., Grupo Penaflor S.A., Gruppo Italiano Vini S.P.A., Henkell & Co. Sektkellerei KG, J. Garcia Carrion S.A, Kendall-Jackson Wine Estates, Ltd., LANSON-BCC, LVMH Moet Hennessy Louis Vuitton S.E., Miguel Torres S. A, Pernod Ricard Groupe, Remy Cointreau Group, The Schenk Group, Treasury Wine Estates Ltd., Vina Concha y Toro S.A., and The Wine Group LLC, among others.