Global Wine Market Report and Forecast 2024-2032

Global Wine Market Outlook

The global wine market size reached a value of USD 428.96 billion in 2023. The market is further estimated to grow at a CAGR of 6.20% during the forecast period of 2024-2032, to reach an approximate value of USD 737.13 billion by 2032.

Wine is an alcoholic beverage made primarily from fermented grapes or other fruits. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, water, or other nutrients. Yeast consumes the sugar in the grapes and converts it to ethanol and carbon dioxide.

Different varieties of grapes and strains of yeasts produce different styles of wine. These variations result from the complex interactions between the biochemical development of the grape, the reactions involved in fermentation, the terroir (the unique environment including geography, climate, and soil where the grapes are grown), and the winemaking process itself.

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Global Wine Market Analysis

The wine market growth is driven by several factors such as increased disposable income, particularly among regular wine drinkers who are willing to spend more on wine, changing lifestyles and consumer preferences, including a growing interest in premium and organic wines, the rising popularity of wine as a social drink, and urban consumers' preference for exotic wines and a general increase in alcoholic beverage consumption.

Wine has been produced for thousands of years, with evidence of ancient wine production dating back to 6000 BC. It's often associated with cultural and religious rituals and celebrations. The wine market is significant both culturally and economically, and it's divided into numerous subfields, including viticulture (grape growing), winemaking, wine tasting, and wine trading.

News and Developments in the Wine Market

In August 2022, new technology for the automation of mechanical shoot thinners was funded by the Washington State Wine Commission. The project was in collaboration with Washington State University researchers.

Automation of the mechanical shoot thinning process can be a game-changer for the wine sector and vineyards. While mechanical solutions do save time as compared to manual shoot thinning, they require constant supervision. The new automated technology can save growers around USD 250 per acre, while providing precision and consistency, and saving resources.

Shoot thinning is necessary for grapes to improve shoot growth, uniformity, air movement, light penetration, and adjusting overall crop loads. Manual shoot thinning is expensive and labour intensive while mechanical shoot thinning requires skilled operators. The automation process implements a visibility solution, image analysis, and deep learning to improve the process.

In July 2022, Constellation Brands Inc. debuted a wine soda under its Woodbridge brand. The Woodbridge Wine Sodas are available in a ready-to-drink format in a convenient can. They feature white wine with different soda flavours. Such innovations by the manufacturers are likely to aid the wine market growth.

In November 2021, a new strategic partnership was announced by The Wine Group LLC with MPL Brands. They came together to launch a ready-to-drink wine-based beverage, with The Wine Group becoming the sales and production partner of MPL Brands, expanding its reach in the growing category of ready-to-drink beverage brands. The collaboration was aimed at boosting innovation in product development for wine, spirits, and ready-to-drink beverages.

In June 2021, E. & J. Gallo Winery expanded its operations, establishing a new facility on the east coast of the US in Pennsylvania state. With an investment of USD 423 million, the new facility was established to boost local production as well as support imports and exports.

Key Trends in the Market

Increasing demand for alcoholic beverages and growing preference among younger consumers

Younger audiences are experimenting with and consuming wine more than ever before. This has boosted the wine market demand by adding a new customer base. Social media promotions through ‘wine influencers’ and recommendations are encouraging audiences to experiment and increase their consumption.

Wine subscription boxes are immensely popular, providing customers with new and unique wines that they might not have chosen themselves. These subscription boxes are particularly beneficial for customers who are not familiar with the beverage but are interested in experimenting.

A wider customer base and expanding distribution channels offer growth opportunities to the market

Wines have traditionally been popular with older age groups, however, in recent years, younger customer are also experimenting with wine. This is one of the crucial wine market trends that increases the overall customer base for manufacturers. Beyond traditional shops, distribution channels such as eCommerce and subscriptions lower customer apprehension and help increase sales.

New types of wines

Experimentation over the years has resulted in new types of wines, and customers are open to trying new variations. Ready-to-drink wines, flavoured wines, premium wines, and wine sodas are among many new varieties.

Climate Changes, High Operational Costs, and Competition May Pose Challenges for the Global Wine Market

Climate Change

Changes in climate and weather patterns impact the growth of grapes and other agricultural sources of wine. Premium grapes are particularly sensitive to even minor changes in temperature, affecting the production quality.

High Operational Costs

Wine making tends to be an expensive process, with careful maintenance of vineyards and the overall winemaking process.

Increased Competition

With expansion of key wine manufacturers into wider regions, there is increased competition between local producers and bigger brands. The popularity of eCommerce as a distribution channel has extended the reach of sellers of all sizes, further adding to the competition.

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Global Wine Industry Segmentation

The global wine market can be segmented based on colour into red wine, white wine, and others. Based on product type, it is segmented into still wine, sparkling wine, fortified wine and vermouth, and others. The distribution channels are on-trade and off-trade. The regional markets can be classified as North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global wine market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• E. & J. Gallo Winery

• The Wine Group LLC

• Madeira Wine Company, SA

• Bronco Wine Company

• Constellation Brands Inc.

• Others

Red Wine Health Benefits Outweigh White Wine, Supporting the Demand Growth

Wine is most commonly available in the form of red wine, and white wine, while others can include rose, grey, and orange. The colour majorly defines the wine itself, its production process, taste, and health benefits. Rose wine tends to be quicker to produce and cheaper.

Red wines are made from entire crushed red grapes, with skins, stems, and seeds, intact for the fermentation process. White wines are typically made with green grapes, but the skins, stems, and seeds are removed before starting the fermentation. The presence of the skin adds health benefits to red wines by increasing plant compounds such as resveratrol and tannins. White wine does still have some health benefits, but in lower amounts since the skins were removed before fermenting.

Growing Demand for Sparkling Wine Likely to Increase Global Wine Market Demand Growth

The broad categories of wine are still wine, sparkling wine, fortified wine and vermouth, and others. Among the core categories of wine, sparkling wine demand is expected to increase and contribute to wine market expansion.

The level of alcohol, the fermentation process, and presence of additives can substantially affect the final flavour and texture of wines. The preferences for types of wines tend to vary based on region and customer demographic. Sparkling wines are fermented twice and contain carbon dioxide to create the bubbly effect.

Off-Trade Distribution Channel Expected to Continue to Dominate the Global Wine Market

For years, the popularity of off-trade distribution channels has been steadily growing for the wine market. The pandemic added a significant boost to its demand. On-trade distribution for on-premise consumption tends to be more expensive for customers as compared to off-trade.

There are multiple options for off-trade distribution through online stores, shops, distributors, supermarkets, or other resellers. Options for on-trade distribution are through restaurants, pubs, hotels, and other sellers.

United States Leads in Overall Wine Sales, Europe with Highest Per Capita Consumption

The regional wine market is based on consumption per capita, overall consumption, and regions with production.

Wine production is dependent upon the growth of agricultural produce, most specifically grapes. Accordingly, the production regions are concentrated in areas with suitable climate. Apart from the climate, the soil quality and the overall terrain also affect the quality of the wine produced.

Most of the grapes for wine production are grown in areas with a Mediterranean climate, including the Mediterranean region itself. Leading producers are Italy, Spain, and France, followed by the United States. Top producers often are top exporting regions for wine.

In terms of total volume, the United States holds a significant portion of the wine market share. Increasing availability of local wine and changing cultural preferences have all contributed to the high consumption in the United States. Based on per capita consumption, Europe leads with Portugal, France, Italy, Switzerland, and Austria all recording high per capita wine consumption. European preferences and wines’ status as a standard accompaniment of meals contribute to its high consumption levels.

In the United States wine market, California emerged as a popular production site for wine, with multiple vineyards, catering to the global wine market. However, droughts and water shortages have led to challenges for the vineyards in grape production. Predictive agriculture technology is implemented to maximise the use of limited water supplies while maintaining quality output for production.

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Asia Pacific to Witness Substantial Growth in the Forecast Period

The APAC wine market is showing strong growth, with a significant increase in market value and size expected in the coming years. This growth of global wine sales is driven by factors such as increasing disposable income, rapid urbanisation, and effective marketing and promotional activities. Additionally, the unique character of the wines produced in the region, owing to its diverse range of indigenous grape varieties, adds to the market's appeal and distinctiveness.

Competitive Landscape

E. & J. Gallo Winery is California-based winery and distributor, founded in 1933. Considered to be the largest family-owned winery in the United States, E. & J. Gallo Winery is also the largest exporter of California wines. Spanning three generations of the Gallo family, the company has a team of over 7,000 people worldwide. It offers over 130 brands, including sparkling, table, and luxury wines, dessert wines, distilled spirits, and beverage products.

The Wine Group LLC is the third-largest producer of wine in the world, and the second-largest producer in the United States. It has an estimated production of nearly 53 million cases per annum. Starting out with the acquisition of brands such as Franzia, Tribuno, and Mogen David, The Wine Group (TWG) was founded in 1981. By expanding its winery operations and increasing the number of brands under its purview, the company witnessed rapid growth.

Madeira Wine Company, SA is a leading producer of specialised Madeira wine. It started out as an association of several Madeira wine producers aiming to improve their winemaking and purchasing capabilities. A Portugal-based company founded in 1913, it maintains and prioritises the unique characteristics of each of the individual producers. Comprising multiple family-owned businesses, Madeira Wine Company, SA has 6th and 7th generation members maintaining the legacy of Madeira wine.

Bronco Wine Company is a family-owned winery launched in 1973 and based out of California. It owns over 35,000 acres of vineyards. The company is known for its low-cost wines aimed at bringing wine to a wider audience. Today, Bronco Wine Company maintains more than 250 wine brands, achieving vertical integration directly from vineyards to customer tables.

Constellation Brands Inc. is a Fortune 500 company, a United States-based producer and marketer of wine, beer, and spirits. With around 40 facilities, it has over 100 brands in its portfolio. Founded in 1945 in New York, the company started out as a bulk seller of wine to bottlers in the eastern United States.

The company went public in 1973 and changed its previous name of Canandaigua Wine Company Inc. to Constellation Brands Inc. in 2000. Multiple acquisitions followed during its expansion, with the company moving towards a premium portfolio. It currently has locations in Mexico, Canada, Italy, and New Zealand, in addition to the United States.

Key Highlights of the Report