Still Wine Market (2022 - 2028)

Report Overview

The global still wine market size was valued at USD 279.32 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.1% from 2022 to 2028. The market growth can be credited to the consumption of premium still wines. Additionally, the increasing number of wineries in the domestic and international industry owing to the rising number of wine consumers is expected to fuel the market growth. Factors such as traveling and rising disposable income are leading to the adoption of global lifestyles and cultures, therefore leading to the appreciation and consumption of good wines. Thus, these factors are expected to drive the market for still wine. In addition, changing the preference of alcohol consumers from hard liquor to mild or low alcoholic beverages such as wine, beer, and seltzers is a prime factor boosting the market growth.

The growing investment by key players to launch new products is further anticipated to boost the industry sales. However, a gradual shift of wine consumers towards non-alcoholic beverages owing to the introduction of innovative beverages may hamper the growth of the market. Owing to the COVID-19 pandemic, the industry demand has been steady. As a result of the lockdowns, the production and supply chain of raw materials required for the manufacturing of wines were deeply affected, thus hampering the market growth.

During the COVID-19 pandemic, online sales channels have witnessed strong growth due to a variety of applications and stay-at-home regulations. According to the International Organization of Vine and Wine (OIV), online wine sales spiked during the pandemic in 2020. The growth in internet sales can be ascribed to many countries and states reducing their buying and shipping regulations. It was mostly driven by the social distancing and drinking at the home trend. Fueled by unique pandemic circumstances, digital platform innovation ushered in a new era of convenient and user-friendly online purchasing. Consumer inclination towards online sales channels to buy still wine has turned out to be a key trend transforming the global market.

Type Insights

The red wine segment captured the largest revenue share of over 50.0% in 2021. Red wine is consumed on a large scale globally as it is rich in antioxidants and powerful plant compounds. In addition, numerous Vitro studies have shown multiple benefits such as improvement in healthy lifestyles of consumers after daily consumption of red wine at a limited amount. Thus, all factors are anticipated to boost the segment growth over the coming years.

The white wine segment is expected to witness lucrative growth over the forecast period owing to its heart-related health benefits. White wine is also consumed on a large scale in the U.S. The rising demand for white wine in developed countries is likely to boost the growth of this segment in the coming years. The others segment is expected to register the highest growth rate over the forecast period owing to the growing product demand as it has a smooth flavor and taste. Increasing consumption of the product among millennials is also driving the market.

Distribution Channel Insights

The liquor stores segment held the largest revenue share of more than 30.0% in 2021 due to its increasing retail sales of liquor over the counter. Moreover, liquor stores offer a variety of products at a low price compared to bars, pubs, and other sale channels, thus have augmented the popularity of retail counters globally. For instance, as per Dimensional Insight, a software company based in the U.S., 36.8% of consumers preferred local liquor stores to purchase wine and spirits owing to localization and recommendations provided by the local stores.

Internet retailing is expected to exhibit the fastest CAGR of 10.9% from 2022 to 2028 owing to its benefits such as on-time home delivery, suitable shopping experience, and varied schemes. This mode of distribution channel has gained popularity over the past few years. According to a report by Wine Intelligence, there is an increasing focus on the delivery speeds and expansion of alcohol delivery apps. 8Wines has been selling wines through its site since 2015 and it has helped in normalizing the practice of purchasing wine through online mode during the pandemic.

Regional Insights

North America held the largest revenue share of over 30.0% in 2021 as the majority of still wine is consumed in this region. The U.S. is the leader in the consumption of wine. Still, wine is largely consumed as a table wine in North America. Furthermore, the growing demand for premium still wines is estimated to fuel the growth of the market in this region.

Asia Pacific is expected to register the highest CAGR of 10.9% from 2022 to 2028. This can be attributed to the growing demand for red wine in China. Red wine is consumed on a large scale in China as a tradition as the red color is considered lucky. Furthermore, there has been significant growth in the consumption of still wines in countries such as Australia and Japan.

Key Companies & Market Share Insights

Key players are focusing on R&D and launching new products to meet the increasing demand for still wine. Furthermore, key players are focusing on the acquisition of plants rather than investing in new production plants to increase their market share and their presence in the market. For instance, in April 2021, Freixenet extended its inventory of still wines to draw demand from its new consumers. Some prominent players in the global still wine market include:

• Diageo

• Pernod-Ricard

• Constellation

• EandJ Gallo Winery

• Treasury Wine Estates (TWE)

• Castel

• Trinchero Family

• Changyu Group

• Casella Wines

• Kendall-Jackson Vineyard Estates

• The Wine Group

• Dynasty

• Accolade Wines

• Concha y Toro

Still Wine Market