Wine has gained significant popularity among consumers as it is seen as a beverage of relaxation and social bonding. It is perceived to be a drink of finer tastes and serves as a refreshing alternative to beer and spirits at social gatherings. The consumption of wine has been increasing across regions owing to rising disposable incomes, westernization and changing lifestyles. The global market is driven by the preferences of millennials and Generation Z consumers who enjoy wine as a beverage to socialize and unwind after a stressful day at work.
The global wine market is estimated to be valued at US$ 3422.75 Bn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the Global Wine Market Size are Semtech Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd., Comcast Corporation, Hewlett Packard Enterprise, NETGEAR Inc., TEKTELIC Communications Inc., Kerlink, Embit S.R.L., IMST GmbH, Aaeon Technology Inc, Laird Connectivity, Multi-Tech Systems Inc., Loriot SAS, Link Labs Inc., Senet Inc., WI-SUN Alliance, Actility S.A., The Things Industries B.V., Libelium Comunicaciones Distribuidas S.L. These players are focusing on expanding their product portfolios and global footprint through mergers and acquisitions.
The wine market provides significant opportunities for vineyards to experiment with different grape varieties and vintages and selectively target premium consumer segments willing to pay for unique tastes and experiences. The market is witnessing increased global expansion activities with many European and American producers setting up operations in emerging markets of Asia Pacific and Latin America to cater to the growing demand.
Market drivers and restraints
The growing trend of socializing over food and drinks among millennial and Generation Z consumers is a key driver boosting the wine market. These young consumers see wine as a sophisticated drink ideal for social gatherings like house parties, restaurant dining, and outdoor picnics. Their increased experimentation with different types of wines and willingness to pay premium prices for unique tastes and vintage varieties is driving market growth.
However, increasing health consciousness is a major restraint. Health-savvy consumers are shifting to low-alcohol or alcohol-free beverages due to concerns around sugar and calories. The rising popularity of healthier drinks like craft beers, hard seltzers and spirits could take market share away from wine. Strict regulations around wine production, marketing and pricing in some countries also pose challenges.
Segment Analysis
The wine market is dominated by the still wine segment. Still wine accounts for over 90% of the total wine market sales globally. Still wine is preferred due to its lower alcohol content as compared to sparkling and fortified wines. It also has a wider variety in taste and flavors which appeals to a larger consumer base. The still wine segment is further divided into table wine and premium wine sub-segments. The table wine sub-segment holds the major share currently due to its mass appeal and affordable prices. However, the premium wine sub-segment is witnessing faster growth rates driven by rising disposable incomes and growing culture of wine consumption among millennials and generation Z consumers.
Regional Analysis
Europe dominates the global wine market with over 37% share currently. Countries such as Italy, France, and Spain have established wine producing industries with a long legacy. However, the wine market in Asia Pacific is emerging as the fastest growing region. In particular, China is projected to surpass major European countries in wine consumption by value during the forecast period. Developing economies in Asia coupled with rising affluence are fueling the APAC wines market growth. North America follows Europe as the second largest market for wine globally. The United States alone accounts for over 15% of total global wine consumption currently.
Get more insights on This Topic- Wine Market
