The global wine industry in 2015 was valued at 288.52 billion USD. The industry grew at a compound annual growth rate (CAGR) of 5.34% per year to reach 355.32 billion USD in 2019. Until 2025, the global wine market is forecast to grow at a CAGR of 3.94% to reach 446.63 billion USD.
The wine market contains three main product types – still wine, sparkling wine, and fortified wine. In 2019, the still wine segment accounted for 85% of the global wine industry’s value. Sparkling wine and fortified wine held a share of 11% and 4%, respectively.
In 2019, Europe accounted for the largest share of the global wine market’s value with 45.6% of the total. North America followed with 18.45%. In third place was Northeast Asia with 10.52%.
South and Central America ranked fourth and held an 8.55% share of the total wine market’s value. Asia Pacific, the CIS countries, Africa, and the Middle East accounted for 8.2%, 4.45%, 3.93%, and 0.29%, respectively.
It should be mentioned that Northeast Asia groups together China, Japan, South Korea, and Hong Kong. If combined with Asia Pacific, then the Asian region would rank second with an 18.72% share of the total. That is slightly higher than North America but still significantly behind Europe.
Global Wine Market Trends
In recent years, the overall wine consumption has decreased, significantly impacted by large markets such as China, Italy, France, Germany, and Spain. Furthermore, consumers drink less but better wine, thus pushing the category in value terms.
According to industry experts, the importance of wine increases for most people. One of the reasons includes the development of food culture, which has led to higher interest in food and wine pairing.
Furthermore, younger people also express interest in trying new wines. However, despite the relatively high involvement and spend per bottle, the objective knowledge about the category has decreased.
Today, most people own a smartphone and have access to all necessary information on demand, which eliminates the need to remember details. Therefore, consumers and especially younger demographics become less aware of grape varieties, countries of origin, and wine-producing regions.
Branding also grows in importance in the wine industry. Major companies within the segment successfully strengthen their positions by increasing investments in marketing activities.
On the other hand, smaller brands that rely primarily on price go backward on key aspects, including awareness, consideration, and affinity. One of the possible reasons includes the tendency of retailers to consider mainly well-known brands as a better investment, while smaller brands are seen as replaceable with the retailer’s private-label products.
Global Still Wine Market Size
The global still wine market was valued at 244.61 billion USD in 2015. It grew at a CAGR of 5.48% to reach 302.8 billion USD in 2019. Until 2025, it is forecast to grow at a CAGR of 3.92% and reach 383.67 billion USD in value.
The regional value shares of the industry are similar to the wine industry as a whole.
Europe accounted for the largest with 40.99% of the total. North America and Northeast Asia followed with shares of 18.45% and 12.04%, respectively.
South and Central America ranked fourth with a 9.65% value share. Asia Pacific, the CIS countries, Africa, and the Middle East followed with shares of 9.29%, 5.02%, 4.26%, and 0.3% respectively.
Still Wine Market Trends
Based on types, organic wine has become a fast-growing segment, propelled by the increasing popularity of healthier lifestyles. At the same time, smaller wineries increasingly use direct-to-consumer strategies. They invite customers directly to their cellars, which provides a value-added experience to their clients. Such a strategy emphasizes the authenticity, heritage, and quality of the product, thus creating an emotional connection between consumers and the brand.
Therefore, direct sales have substantial profitability potential. In fact, in Australia, the cellar door segment accounted for 44% of all direct-to-consumer revenue in 2018. Other channels include online, discounters, and convenience outlets.
According to industry experts, technological development is expected to raise the popularity of virtual labels and further improve options for buying wine online.
Another growing category is orange wine. It gained popularity on the market in recent years, even developing into its own segment similar to rosé and red wine.
What is more, the interest in red wines and rosé remains prevalent on a global scale, especially when it comes to lighter-style wines with a floral scent.
As for white wines, demand witnessed a decline in 2019, owing to the poor harvest in important European regions.
While the market for commercial still wines experienced a decline of about 0.2% per year over the last decade, the premium segment has registered growth.
Global Sparkling Wine Market Size
In 2015, the global sparkling wine market was worth 32.47 billion USD. Until 2019, it grew at a CAGR of 4.87% to reach a value of 39.27 billion USD. The industry is forecast to continue its growth at a CAGR of 3.62% and reach 48.75 billion USD in 2025.
Regionally, the sparkling wine market value is concentrated in Europe. In 2019, Europe accounted for 73% of the total value.
North America ranked second, with a value share of 17% of the total sparkling wine industry value. All other regions accounted for a share of less than 3%.
Sparkling Wine Market Trends
Sparkling wine has grown in popularity in recent years, becoming a major growth driver in the wine industry as a whole. Its share of global wine sales has grown rapidly, especially in spring and summer, when consumers prefer light and refreshing beverages.
Based on type, the category is driven by prosecco, which is especially popular among younger consumers.
Geographically, consumption in Germany is fading. However, it gains momentum in newer wine markets like China, Brazil, Japan, South Korea, Russia, and some regions in Africa. Demand for sparkling wines from Chile, Australia, New Zealand, and Brazil has also risen.
Another growing trend in the sparkling wine market is linked with alternative packaging. Many companies explore unconventional packaging methods, including cans and single-serving glass bottles. Those types are more practical in the summer, as they can be used at outdoor places and events, where large glass bottles are often inconvenient to carry.
Global Fortified Wine Market Size
The global fortified wine industry in 2015 was valued at 11.44 billion USD. It grew at a CAGR of 3.74% per year to reach 13.25 billion USD in 2019. Until 2025, it is forecast to continue growth at a CAGR of 1.14% per year to reach 14.21 billion USD.
The distribution of value across regions for the fortified wine industry remains similar to the other segments in the overall wine industry.
Europe is again the region that concentrates the majority of the fortified wine industry’s value with a share of 68.43%. North America holds a share of 22.25% of the total.
All other regions held a share of less than 4% each.
Fortified Wine Market Trends
Major trends in the fortified wine market are closely linked with the growing health and wellness trend and the increased preference for low and non-alcohol beverages.
As a result, fortified wines like port and vermouth see frequent use in cocktail drinks because they keep alcohol levels down.
Moreover, vermouth aligns with customers’ high expectations of taste and demand for more sophisticated flavors, resulting in reviving interest. Its versatile aromatic flavor profile makes it ideal for cocktails.
Regionally, sherry and madeira have seen a significant resurgence in the USA and the UK, partially driven by restaurants’ efforts to match them with all courses of their meal. In addition, younger consumers also show increased interest in the category in recent years, following the rise of cocktail culture.
Wine Market Competitive Landscape
Similarly, following the growing trend of premiumization, wine-making companies enter into merger and acquisition deals to add more premium products to their portfolios.
One of the most prominent deals on the market is the 180 million USD purchase of Stagecoach Vineyard by E. & J. Gallo in 2017.
Another recent deal on the global market was the purchase of Outpost, a winery on Napa Valley’s Howell Mountain by AXA Millésimes in 2018.
In addition, the cooperation between the German sparkling wine producer Henkell and the Spanish-leading company – Freixenet S.A. is a crucial development on the market. In the second half of 2018, Henkell completed the acquisition of the Spanish winemaker by acquiring 50.67% of its shares. Thus, the two companies have formed the world's largest sparkling wine group.
Although, the industry is consolidating, there are still opportunities for further deals. Furthermore, corporate restructurings that involve wine distributors and retailers also grow.
