Global Wine Market is expected to reach a healthy CAGR of 7.1 % in the forecast period 2019 to 2026. The new market report contains data for historic years 2017, the base year of calculation is 2018 and the forecast period is 2019 to 2026.
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Growing Consumption of Wine:
Wines has been studied extensively by the people and it have been found that moderate consumption of wine by an individual may help to live longer, gives protection against cancer, improvement in mental health and also enhances heart health. Due to such benefits the consumption of the wine as well as production of the wine is increasing in recent era.
Due to health benefits of wine across the people worldwide the wine consumption and production is increasing day by day in recent era. For instance, it was found that U.S., France, Italy and other countries have more consumption of wine by the people.
CHANGES IN LIFESTYLE:
In recent time the lifestyles of an individual have changed due to standardization and industrialization and hence it has led today’s world in a drastic change in all form such as living style and others. These changes in lifestyle are also responsible for changes in dietary patterns.
Changes in family and social environment have also taken place due to health services and better education facilities which have led revolutionized change in children’s as well as parents’ lifestyle.
Now a day, the consumption of alcohol is increasing due to changing lifestyles, rising disposable income and relatively young population who are attracted towards it. When it comes to wine, people feels that it is an elite product among other beverage. Now a day, people take wine with food, which is the main reason for the growth of this market and mostly dessert wines are taken while eating food by consumers.
Better lifestyle means people are getting rich and famous and hence they are more attracted to these things such as wine and other alcoholic products which are used when they arrange their parties. So, it can be seen that wine market is growing due to change in life style among people as people feel joy and fun in consuming these products mostly during parties.
GROWING HEALTH CONSCIOUSNESS AMONG CONSUMERS:
In recent time younger consumers are the most willing people thinking about their well-being and wellness-oriented lifestyle care. The people with better education and facilities of nutrition, fitness, work-related stress and the environment come under "health-conscious consumer profiles".
Food manufacturers as well as restaurant operators in today’s era are well suggested to take these trends seriously and react consequently.
This means that many of the traditional marketing strategies for products that give health benefits may give growth to this particular market.
Changing concern toward healthier foods and beverages among people provides health benefits, thus helping this market to grow. For instance, red wine is a good source of antioxidants as it contains flavonoid that reduces the risk of coronary heart disease. With such benefits people or consumers are getting more attracted towards it.
INCREASING MERGER AND ACQUISITION ON LARGE SCALE:
In the past few years it has been found that mergers and acquisitions by the companies especially for wine sector has increased significantly between countries largest wholesalers and retailers. Changes in technology, business models in wine industries are giving number of providers, sellers and distributors in this market.
The investments have been done by many major companies such as Treasury Wine Estates who have established its own distribution system in Chile. Concha y Toro have made an investment in the Excelsior Wine Co. Excelsior which is a massive import and marketing outfit.
As the wine market is a very big market, various mergers and acquisitions are taking place to increase the growth on large scale and they are given below:
Various product launches are taking place with respect to wine because of which companies are making different investment with other companies for their business expansion. Further increase in premium brands for alcoholic beverages has given companies a better opportunity to invest huge amount in alcoholic beverages in the form of product launch, innovations as well as merger and acquisition. Due to such mergers and acquisitions, the companies in wine market are found to be with higher revenue and hence this is helping in the growth of the market. For instance, Castel Group (France) acquired stake in Belvedere in 2015. This helped company to develop a strong growth potential in wine industry. Hence, continuous merger and acquisition will help in driving the wine market.
High Cost of Wine Production:
The wine market in recent time has undergone very important changes due to globalization and consumption behaviour of consumers. In recent era, the demands of the consumers have become more and more complex as there is an increase in heterogeneity when it comes to preferences.
Hence due the competition and the difficulties in completing consumer demand the companies are getting less profit in order to reach consumers need.
When it comes to the cost of wine production or packaging, cost of a bottle in which the wine is stored is one of the crucial elements in the management of a winery.
After fermentation wines are aged in oak barrel aging systems, however with the traditional aging technology it takes lengthy time and high cost.
Regulations for alcoholic beverages in beverage industry may hamper the growth of the market due to strict regulation which is a difficult task to maintain the criteria under regulation. Policy on alcohol marketing is relatively weak in the Western Pacific region where as in East Asia it is regulated by the government.
The European Commission has multiple regulations for wine sector which implements the quality schemes as per the requirement. Under this, it has specific regulation which includes the application of EU quality schemes and other legislations that requires the label checking and the presentation of certain wine sector products.
Wine has been a part of European people because it is consumed more with food in Europe and is also included in agriculture, food industry and trade. In Europe, 3 million producers and employees in companies are available and hence more production of wine is done.
There are rules which are made for specified agricultural sector products, including wine and the legislations that are:
Quality regulations in this market may also affect income distribution. In implementing the same, producers may face few more cost for maintaining certain quality standards in quality regulation scenario. For instance, regulations that restrict the production of wine in certain region may harm the owners of land and vineyards in neighbouring regions.
The strict regulations to this sector such as rules or legislation for proper bottling, production, import and distribution is hampering the growth of the market. For instance, the product should be manufactured with quality standard which is very difficult for the manufacturer sometimes.
Increasing Disposable Income & Growing Demand of Wine:
An increase in the disposable income means increase in household income which is available for spending and saving. Increase in saving money is making people to spend on some other things such as parties, fun full events and other. Some of the community & industry insiders conduct monthly tastings & events especially for wines where people spend their saving or money.
The wine is an agricultural product that can increase the capital income. India is an agricultural land and it provides major production of grapes by which wine is produced. As the wine consumption is increasing, grape production need to be also increased to fulfil the demand of manufacturers to produce more wine.
In recent time due to technological equipment of manufacturing capacities the production is increasing as per the demand by the public.
The wine demand is increasing by wine tourism and special programs conducted by companies or authentic agencies. The demand has also been influenced by the health recommendation of physicians.
Due to increase in the demand of wine by consumers, it is helping this market to grow. As wine is an agricultural product, hence it is helping to increase the per capita income of countries such as India, Germany, France and others.
Innovation in the Products with Flavoured Wine:
Wine is an alcoholic beverage which is produced by fermentation along with an organism called yeast. Basically wine has no flavours but this can be done by adding or blending with some other component that gives the flavour. There are components that give aroma, taste and tactile sensations to wine.
Various wines that are available in market as a flavoured category are Arbor Mist Blackberry Merlot, Arbor Mist Blackberry Merlot, Arbor Mist Exotic Fruits White Zinfandel, Arbor Mist Island Fruits Pinot Grigio, Arbor Mist Mango Strawberry Moscato, Arbor Mist Mango Strawberry Moscato, Arbor Mist Peach Moscato, Arbor Mist Pomegranate Berry Pinot Noir, Arbor Mist Raspberry Pink Moscato, Arbor Mist Raspberry Pink Moscato and many others.
Innovation of new products under this market is helping this market to grow, as the demands of the people are getting fulfilled by the manufacturer and hence helping this market to grow.
Increase in Substitute Products and Services:
There are various other products that are same as that of wine and hence this can be found to be a threat to this market. Other alcoholic products are gaining much popularity in alcoholic field. Younger Americans prefer other alcoholic beverages than wine.
The other alcoholic and non-alcoholic beverages that are available in the market are Vodka, Whisky, Brandy, Vermouth, Cognac, Beer and many others. These products are easily available in the market with less cost.
Magic Moments is a type of vodka that costs USD 8.6 for 750 ml and USD 4.5 for 750 ml. These products have low prices as compare to price of wines.
Availability of comparable products or substitutes may hamper the growth of the market. For instance, wine has upper class in alcoholic beverages and hence it has higher cost while other products have lower cost and people would prefer such products instead of wine.
On the basis of type, the market is segmented into still wines, sparkling wines, fortified wines and others. In 2019, still wines segment is expected to grow at a CAGR of 7.0% in the forecast period of 2019 to 2026. However, sparkling wines segment is growing with highest CAGR 8.0% in the forecast period of 2019 to 2026.
On the basis of colour, the market is segmented into red wine, white wine, rose wine and others. In 2019, red wine segment is expected to grow at a CAGR of 7.30% in the forecast period of 2019 to 2026. However, white wine segment is growing with highest CAGR 7.33% in the forecast period of 2019 to 2026.
On the basis of product type, the market is segmented into flavoured and unflavoured. In 2019, unflavoured segment is expected to grow at the highest CAGR of 7.4% in the forecast period of 2019 to 2026.
On the basis of packaging, the market is segmented into bottles, cans and others. Bottles segment is sub-segmented into glass and plastic. In 2019, bottles segment is expected to grow at a CAGR of 6.9% in the forecast period of 2019 to 2026. However, Can segment is growing with highest CAGR 7.9% in the forecast period of 2019 to 2026.
On the basis of body type, the market is segmented into light-bodied, medium-bodied and full-bodied. In 2019, full-bodied segment is expected grow at the highest CAGR of 7.2% in the forecast period of 2019 to 2026.
On the basis of distribution channel, the market is segmented into off trade and on trade. The on trade is sub-segmented into specialty stores, online retailers and others. In 2019, off trade segment is expected to grow at the highest CAGR of 7.2% in the forecast period of 2019 to 2026.
Some of the prominent participants operating in this market are Accolade Wines, The Wine Group, Davide Campari-Milano S.p.A., E. & J. Gallo Winery, Constellation Brands, Inc., John Distilleries, India, Castel Group, CDV · Compagnia del Vino, AMVYX, BACARDI, Pernod Ricard, TREASURY WINE ESTATES, Caviro, Miguel Torres S. A., Concha y Toro, Sula Vineyards Pvt. Ltd., Chapel Down and others.
Global Wine Market– Industry Trends and Forecast to 2026
North America Wine Market- Industry Trends and Forecast to 2026
Europe Wine Market– Industry Trends and Forecast to 2026
Asia Pacific Wine Market– Industry Trends and Forecast to 2026
Middle East - Africa Wine Market– Industry Trends and Forecast to 2026
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