Wine Market size is set to grow by USD 156.8 billion from 2024-2028, Online sales channels gaining traction in global wine market boost the market, Technavio

NEW YORK, July 25, 2024 /PRNewswire/ -- The global wine market size is estimated to grow by USD 156.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.93%  during the forecast period. Online sales channels gaining traction in global wine market is driving market growth, with a trend towards increasing prominence of private-label brands. However, rising competition from other alcoholic beverages  poses a challenge. Key market players include Accolade Wines Australia Ltd., Boisset Family Estates, Bronco Wine Co., Casella Wines Pty. Ltd., Castel Freres, Charlie and Echo, Concha y Toro, Delicato Family Wines, Deutsch Family Wine and Spirits, E. And J. Gallo Winery, Emiliana Organic Vineyards, Harris Organic Wines, Inglenook, Jackson Family Wines Inc., King Estate Winery, Les Domaines Barons de Rothschild Lafite, Pernod Ricard SA, The Wine Group LLC, and Treasury Wine Estates Ltd..

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Market Driver

Private-label wines have emerged as a significant focus area for retailers worldwide, contributing to the expansion of the global wine market. Major retailers, including Alibaba and grocery stores like Tesco Plc and Aldi Stores Ltd., are introducing their own branded wines to capitalize on the rising consumer demand and enjoy higher profit margins, which are around 10%-15% greater than national and global brands. These wines are exclusively produced for a single retailer and sold under their brand name, distinguishing them from winery-branded products. The private-label wine segment has experienced substantial growth in the last decade, with some European countries reporting penetration levels above 50%. This trend is anticipated to continue driving market growth in the forecast period. 

The wine market is experiencing a positive outlook with increasing product adoption, especially among young consumers. Delicate flavors and richness of products continue to drive demand. Heart health concerns, including coronary heart disease, heart attack, and stroke, have led some consumers to seek wines with health benefits. Organic wines are gaining popularity due to health consciousness and concerns about chemicals. Harvest time is crucial for growers, ensuring high-quality ingredients. Red wine, particularly, is in focus due to its heart health benefits, such as resveratrol and antioxidants. Premiumization and sustainability are key trends, with wineries adopting organic methods and focusing on reducing their carbon footprint. Socializing remains a significant factor, with restaurants, bars, and wine tourism playing key roles. Western cuisines and various wine varieties cater to diverse palates. E-commerce platforms and e-commerce have emerged as crucial retail sales channels. Flavored fortified wines are also trending, catering to various lifestyles. Celiac disease has led to a growing demand for wines free from gluten. Wine production and wineries continue to innovate, offering unique experiences and catering to diverse tastes. 

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Market Challenges

• The global wine market faces competition from various alcoholic beverages, including beer, spirits, and cocktails. Factors contributing to this competition include the availability of alternatives that are often less expensive and more accessible than wine. Changing consumer preferences, particularly among younger demographics, favor sweeter and more flavorful options. Imported brands of beer, spirits, and cocktails also pose a threat. Social and cultural factors in certain regions may impact wine's popularity. Lack of education and awareness regarding wine's health benefits and food pairing can lead consumers to opt for alternative beverages. These elements collectively present challenges for the global wine market, potentially hindering its growth during the forecast period.
• The wine market faces several challenges in the modern business landscape. In the e-commerce sector, ensuring secure and timely delivery of perishable red wine is a significant hurdle. Sustainability and organic methods in wine production are becoming essential for wineries seeking to cater to health-conscious consumers. Resveratrol and antioxidants in red wine varieties offer potential health benefits, but wine production involves adding preservatives like potassium sorbate and potassium metabisulfite, as well as acids and alcohol. Wine tourism and luxury wine markets thrive, especially in regions famous for Champagne, Chianti, and Western cuisines. Wine's role as an alcoholic beverage, with tannins, sugar, and enzymatic browning, raises concerns regarding its impact on circulatory diseases, heart diseases, and blood sugar levels. Moderate consumption of wine, particularly red varieties, may have benefits against common cold, bad cholesterol, and cancer, but excessive consumption can lead to cell damage. Wine's flavor, aroma, and various applications, including cooking, fortified wine, sparkling wine, and vermouth, make it a versatile alcoholic beverage.

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Segment Overview 

This wine market report extensively covers market segmentation by  

1. Distribution Channel
• 1.1 Off-trade
• 1.2 On-trade
2. Product 
• 2.1 Red
• 2.2 Fortified
• 2.3 White
• 2.4 Sparkling
3. Geography 
• 3.1 Europe
• 3.2 APAC
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Off-trade-  The wine market is a significant sector in the global beverage industry. It experiences consistent growth due to increasing consumer preferences for premium and high-quality wines. Wine production and sales have become a business opportunity for numerous countries, particularly in Europe and the Americas. Wine exports also contribute significantly to international trade. Market trends indicate a growing demand for organic and biodynamic wines, as well as wines with unique flavors and characteristics. Wine businesses invest in research and development to meet these evolving consumer preferences. The market is competitive, with various players focusing on innovation, quality, and branding to stand out.

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The global alcoholic drinks market is experiencing robust growth, driven by increasing consumer demand and innovation in product offerings. Notably, the global champagne market is expanding, with rising popularity among younger demographics and festive occasions. Meanwhile, the global rice wine market is gaining traction, particularly in Asia, due to its cultural significance and unique flavors. Key players are focusing on premiumization and strategic partnerships to capture market share, while sustainability and health trends are influencing product development across these segments.

Research Analysis

The e-commerce wave has significantly impacted the wine market, making it more accessible to consumers worldwide. Red wine, a popular choice, is rich in antioxidants like Resveratrol, known for their health benefits. The wine industry focuses on sustainability and organic methods, with wineries adopting eco-friendly practices in wine production. Grapes, the primary ingredient, are carefully harvested and processed to preserve their aromatics and flavors. Wine production involves adding potassium sorbate and water as preservatives, along with potassium metababisulfite and acids to maintain taste and stability. Alcohol, sugar, and tannins contribute to the wine's body and texture. Enzymatic browning can affect the wine's color and flavor, necessitating careful handling. Wine has various applications, from cooking to fortified wines, and serves as a common cold remedy. It's known to help lower bad cholesterol and regulate blood sugar levels, but excessive consumption can lead to health issues like cell damage and cancer. The aroma and flavor of wine are influenced by various factors, including the grape variety, fermentation process, and aging.

Market Research Overview

The global wine market is a thriving industry that caters to the growing demand for red wine and other alcoholic beverages. Wine production involves the fermentation of grapes, resulting in a complex beverage rich in antioxidants like resveratrol and various health benefits. Sustainability and organic methods are increasingly adopted in wineries to reduce the carbon footprint and cater to health-conscious consumers. E-commerce has revolutionized wine sales, making it accessible to consumers worldwide. Red wine varieties like Chianti and Champagne are popular choices, with delicate flavors and richness that complement Western cuisines. Wine tourism is a significant contributor to the industry, offering unique experiences and education on the production process. Wine is more than just an alcoholic beverage; it's a cultural experience with various applications in cooking and socializing. Fortified wines, sparkling wine, and Vermouth add diversity to the market. Moderate consumption of wine has been linked to heart health, with potential benefits for circulatory diseases, heart diseases, and even cancer. The luxury wine market caters to consumers seeking high-quality ingredients and premium experiences. However, concerns over chemicals like potassium sorbate, potassium metabisulfite, acids, alcohol, tannins, and sugar are driving the demand for organic wines. The industry's positive outlook is driven by product adoption, young consumers, and lifestyles that prioritize health and wellness. Despite its health benefits, wine consumption may have potential drawbacks, including enzymatic browning, allergies like celiac disease, and interactions with common cold or medications. The industry continues to innovate, with flavored fortified wines and e-commerce platforms offering convenience and variety.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Off-trade
• On-trade
• Product
• Red
• Fortified
• White
• Sparkling
• Geography
• Europe
• APAC
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio