The wine sector is of great importance in the global economy, due to its relevance, both in terms of production (the world wine consumption is around 24 billion liters per year) and in terms of value generation (28.9 billion dollars in revenue).
Italy, Portugal and France are in the top position as major wine consumers, with an average of 35 liters consumed per person, per year. In terms of total consumption, the main markets are the USA, China and France, due to their large populations.
The wine and spirits industry was severely affected by the pandemic, due to the closing and sanitary restrictions applied to the Horeca channel, especially bars, restaurants and the tourism sector. However, new trends have emerged, as a result of the pandemic and of consumers behaviour, that will shape the global wine market and present a number of opportunities for growth and tapping into new business niches.
Ecommerce and increased digital presence
In the face of the constraints of the pandemic and the closure of several retail outlets, sales of wine and spirits through digital platforms have grown at a rapid pace.
After the pandemic, the weight of online sales of wine and spirits should remain significant, with many consumers already loyal due to the features (comparison, reviews and feedback) of online stores and the ease of access, purchase and receipt of products “on the doorstep”.
There were also some changes in terms of consumer habits, which led to an increase in the demand for new formats for wine and alcoholic beverage packaging. The “bag-in-box” and canned wine stand out, which have been very popular around younger audiences.
Healthy and sustainable products
Concepts such as sustainability, health and well-being are increasingly valued by consumers. This trend has increased the demand for natural, organic and biodynamic wines, with a growth of 20% since 2014 and 15% in France and Italy, respectively.
Sustainability is a value that is increasingly aligned with the goals of social responsibility and the purpose of brands, with consumers paying more and more attention to the natural resources used in the production of their consumer goods.
Sparkling wine ramifications
Sparkling wine represents about 10% of all wines produced worldwide, and about 80% of it is produced in Europe.
The vast majority of sparkling wine is consumed in the European Union market, with increasing demand for this product category in foreign markets such as the United Kingdom and the United States.
Demand for rosé increases due to the influence of social media
Rosé wine has been gaining popularity among consumers, much due to the influence of various personalities on social media. This wine category represents, similarly to sparkling wine, about 10% of world production, and there has been a significant increase in demand. However, it should be noted that rosé is subject to seasonality, since it is a type of wine more in demand in the summer.
With a huge heritage of international expansion, the wine and spirits industry faces major challenges that shape the future of the sector. It is important to look closely at new trends, to be pioneers, and to seek to place innovation as a priority for sustainable growth in the future.
At Market Access we closely follow the requirements of the markets, new consumer trends and support our customers in addressing and meeting the challenges that international markets demand. If you want to approach new market niches and internationalize your wine to new geographies, contact us!
Zachary Elfman, “Libation Frontiers: A Deep Dive into the World Wine Industry”, available at: https://www.toptal.com/finance/market-sizing/wine-industry
IWSR, “Global wine trends to watch in 2021”, available at: https://www.theiwsr.com/global-wine-trends-to-watch-in-2021/