Description
The Global Sparkling Wine Market size was USD 55.6 billion in 2023 and it is expected to grow to USD 82.6 billion in 2031 with a CAGR of 4.5% in the 2024-2031 period.
Global Sparkling Wine Market: Overview
The global sparkling wine market has been growing and evolving rapidly, because of shifting consumer tastes and novel developments in products. From 2019 and 2022, monthly intake increased from 56% to 72%, with around 38 percent now consuming it frequently. There is a growing curiosity in trying new types, with 45% of customers eager to experiment. Premium possibilities such as Champagne as well as Napa Valley sparkling wines are becoming more and more common, as are rosé types. Cans and single-serve bottles are instances of modern packaging advances. While Champagne and Prosecco remain prevailing, other regions, such as Cava, have seen significant growth, reflecting the market’s constantly changing character.
Global Sparkling Wine Market: Covid-19 Impact
The Covid-19 pandemic had an enormous effect on the global sparkling wine market, although the industry remained resilient and expanded in certain regions. While initially viewed as a celebration drink, sparkling wine sales climbed by double-digit percent between 2020 and 2021, with more development expected in 2022. Sales initially decreased but not as drastically as projected, and a complete turnaround is expected by 2023. There was a noteworthy movement towards home drinking, with an increase in corresponding sparkling wines with casual dinners. During the worldwide epidemic, online and direct-to-consumer sales increased dramatically, particularly between occasional wine consumers.
Global Sparkling Wine Market: Growth Drivers
1. Changing consumer preferences:
Changing consumer tastes have an enormous effect. As more people seek variety and improvement in their beverage choices, there is an increasing curiosity in sparkling wines, particularly expensive choices like Champagne and high-end sparkling wine from locations such as California’s Napa Valley. This change towards the premiumization is driving market growth and drawing new customers to the market.
2. Innovative product trends
The sparkling wine market’s growth has been driven by novel product trends. Producers are responding to consumer demand for variety by introducing novel and unique sparkling wine varieties, such as rosé sparkling wines. These wines, with their attractive colour, fruity preferences, and associated with elegance, are gaining favour with consumers while contributing to total expansion of the market.
3. Regional trends
Regional trends are key in affecting the growth of the global sparkling wine industry. While classic sparkling wine-producing regions such as Champagne and Prosecco continue to dominate in terms of value and volume sales, other regions are also expanding significantly. For example, Cava, a sparkling wine from Spain, is experiencing substantial expansion, indicating that the market has been growing more diverse and stretching outside of its conventional borders.
Global Sparkling Wine Market: Restraining Factors
1. Economic Uncertainty:
Financial instability is an enormous danger to the around the world sparkling wine sector. During times such as economic depression or unpredictability, customers might restrict the amount they spend on non-essential matters, particularly expensive items like sparkling champagne.
2. Regulatory Challenges:
Conformity with regulatory rules is a significant challenge for subjects in the sparkling wine market. Producers must follow a complicated set of rules and requirements controlling alcohol production, labelling, and delivery.
Global Sparkling Wine Market: Opportunity Factors
1. Rising Consumer Affluence:
The rising wealth of consumers, particularly in nations that are developing, represents an enormous potential for the sparkling wine business. As economies develop and disposable incomes rise, customers are more inclined to indulge in luxury goods and activities.
2. Evolving Consumer Preferences:
Changing consumer preferences for premiumization and experience drinking create multiple opportunities for creative thinking and diversification in the sparkling wine sector. Consumers nowadays frequently seek out unique and sophisticated drinking experiences, which has increased demand for high-quality sparkling wines with distinctive traits.
Global Sparkling Wine Market: Challenges
1. Competition from Other Beverages:
The sparkling wine market is struggling against tough competition from a variety of both alcoholic and non-alcoholic drinks, including beer, spirits, even non-sparkling wines. Customers have a wealth of alternatives to select from, rendering it difficult for sparkling wine makers to make themselves stand out against intense rivalry.
2. Price Sensitivity and Economic Uncertainty:
Price sensitivity among consumers, especially in times of economic uncertainty, can impact the demand for sparkling wine.
Global Sparkling Wine Market: Segmentation
- Based On Type: The market is segmented into Red, Rose, White.
- Based On Product: The market is segmented into Cava, Champagne, Cremant, Prosecco, Others.
- Based On Price Point: Based on Price Point segmentation, the market is further divided into Economy, Mid-range, Luxury.
- Based On Sales Channel: Based on sales channel segmentation, the market is further divided into Supermarket/Hypermarket, Specialty Stores, On Trade, Others.
- Based On Region: Based on Region, the market is segmented into five key geographical regions namely – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Global Sparkling Wine Market: Regional Insights
1. Asia-Pacific
The Asia-Pacific sparkling wine industry is growing due to a number of causes. For initial reasons, Western culture is becoming more widely implemented, leading to an increase in sparkling wine intake on occasions of significance. Furthermore, social media and lifestyle personalities influence consumer tastes, especially among younger demographics. Furthermore, greater disposable incomes and a willingness to spend upon celebrations are fuelling interest in sparkling wine in the area. These patterns represent a shift in the buying landscape towards wine consumption, indicating appealing possibilities for expansion in the Asia-Pacific sparkling wine industry.
2. North America
The sparkling wine market in North America is thriving, especially within the United States, which leads the world in manufacturing as well as consumption. Canada and Mexico both play important roles within this regional market. Several factors influence the growing popularity of sparkling wine in North America. First, there is a noteworthy increase in consumption, shown by a 30% increase in the total amount of Americans consuming sparkling wine between 2019 and 2022. This trend is fuelled by increasing disposable income and a growing propensity for shelling out money on celebratory events like weddings as well as receptions.
Competitive Landscape
- Bronco Wine Company,
- Caviro Extra S.p.A.,
- Pernod Ricard,
- Treasury Wine Estates,
- Casella Family Brands,
- Vina Concha y Toro SA,
- E. & J. Gallo Winery,
- Constellation Brands,
- Inc., and Accolade Wines Australia Limited.
Recent Developments
Bronco Wine Co. introduces Panther Rock, a luxury label, with their debut release, the 2021 Panther Rock Napa Valley Meritage, crafted by Carol E. Franzia, a fourth-generation winemaker. This Meritage blend, comprising Cabernet Sauvignon, Merlot, Cabernet Franc, and Petit Verdot, symbolizes the family’s heritage and future aspirations.
Named after a cherished childhood location, Panther Rock embodies a harmonious blend of power and elegance, reflecting the family’s dedication to wine and kinship. With bold dark fruit flavors and a velvety texture, this wine, aged in French oak barrels, offers a premium experience priced at $90.
Caviro Extra advances its sustainability efforts by producing biogas and biomethane/RNG from winemaking by-products and agro-food wastewater. In 2020, they launched a CO2 recovery plant producing 7,000 tons annually and plan to start a biomethane liquefaction plant for transport use. Additionally, they are developing a new composted soil conditioner from digestate and organic residues, completing their eco-friendly cycle.
