April 18, 2024
Wine Market

Wine Market Driven By Increasing Wine Demand From Millennial Population Is Set To Grow Exponentially

Wine is one of the most widely consumed alcoholic beverages produced by fermenting grapes or other fruits. Wine offers several health benefits such as reducing risks of heart diseases and diabetes due to presence of antioxidants. Red wine, in particular, contains resveratrol which is known to improve cardiovascular health. With increasing health consciousness, wine is becoming a preferred drink among consumers. Moreover, wine tastes great when paired with different cuisines making it a popular beverage option for social gatherings and celebrations.

The global wine market is estimated to be valued at US$ 3422.75 billion in 2024 and is expected to exhibit a CAGR of 30.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessing in the wine market is the rising popularity of rosé wines. Rosé wine production and sales are increasing significantly across major wine producing regions. Rosé wine appeals to a new, younger demographic interested in wines that are lower in alcohol and calories as compared to red wines. Rosé wines are considered fashionable, colorful, and feminine. Their light palate makes rosé wines extremely versatile as an all-day drink for occasions from brunch to beach days. With their growing health consciousness and interest in versatility, millennials are driving mainstream rosé consumption in both on-premise and off-premise channels. Rosé wines match their laid-back lifestyle perfectly well without many restrictions. This increasing millennial demand is expected to continue boosting the rosé wine market over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the wine market requires high initial investments and it is difficult for new players to gain brand recognition and acquire large distribution channels.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of a variety of wine brands at various price points. Buyers can easily switch between wine brands.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers of raw materials like grapes. However, some suppliers possess unique grape varieties and terroirs which give them an edge.
Threat of new substitutes: The threat of new substitutes is low as wine does not have many substitutes that can provide the same experience. However, beer and spirits act as potential competitors.
Competitive rivalry: The competitive rivalry is high among the existing major wine producers due to their established brands and global distribution networks.

Key Takeaways

The Global Wine Market Demand is expected to witness high growth over the forecast period of 2024 to 2031.

Regional analysis – Europe dominates the global wine market with Italy, France, and Spain being the fastest growing markets in the region. Together they account for over 50% of the global wine production.

Key players analysis – Key players operating in the wine market are E&J Gallo Winery, The Wine Group, Treasury Wine Estates, Constellation Brands, and Castel Group. E&J Gallo Winery is the largest wine company globally, selling over 110 million cases annually. The Wine Group is the second largest global wine company and the largest wine company based in the US.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it