Brut Sparkling Wines Demand to Dominate, Yielding 1/3rd of the Global Revenue Share, Finds Fact.MR
Published : 22 Oct 2021 Industry: Food & Beverage
Sales of sparkling wines are expected to reach US$ 84.6 Bn by the end of the forecast period 2021-2031, registering a robust 7% CAGR, concludes a recently published report by Fact.MR. Furthermore, the market is anticipated to be valued at US$ 43 Bn by 2021-end. Demand is being spurred by an increase in disposable incomes, permitting purchases of premium alcoholic beverages.
From 2016 to 2020, prospects appeared quite modest, with the sparkling wine industry registering a CAGR of 3%. Prospects further dwindled during the COVID-19 outbreak, as the first wave prevented purchases due to the imposition of stringent lockdowns. However, with the eventual flattening of the infection curve, certain restrictions were lifted, thus permitting online delivery of sparkling wines.
Manufacturers are likely to discover highly lucrative growth prospects across the developing world. For instance, as of 2020, alcoholic beverage consumption in India was said to have reached 6.5 billion litres, while the Indian Council for Research on International Economic Relations (ICRIER) estimates the market to be worth US$ 52.5 billion. Hence, various sparkling wine providers such as Fratelli, Chandon Brut Rose and Sula Brut are making their debuts in the market.
Key Takeaways from the Market Study
- By distribution channel, sales via modern trade channels to account for 1/3rd of global revenue
- E-commerce to hold around 20% share in sparkling wines distribution through 2021
- Brut sparkling wines to remain preferred, accounting for 33% revenue until 2031
- Demand for extra-brut sparkling wines to capture 20% revenue share
- Europe to be a global sparkling wine hotspot, generating an opportunity worth US$ 5 Bn
- Consumption of sparkling wine in North America to surge at over 4% CAGR until 2031
“Despite the COVID-19 outbreak, e-commerce sales of sparkling wine have set new records owing to the surge in residential consumption of wine. Also, emerging trend of consuming champagne and wine at casual occasions will garner the future demand.” comments a Fact.MR analyst.
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions to expand their market ground. Prominent market developments are as follows:
- In September 2021, Pernod Ricard SA signed an agreement to acquire online alcoholic beverages trading platform The Whiskey Exchange. This acquisition is co-incident with Pernod Ricard’s consumer centric strategy of fulfilling new consumer needs and expectations, and a strong demand for premiumisation
- In August 2021, Treasury Wine Estates Ltd. announced its decision to join the RE-100 global renewable power initiative, as part of its commitment to transition to 100% renewable electricity generation by 2024. Its premium brands: Penfolds, Wolf Bass, Pepperjack, Wyns and Squealing Pig- will be manufactured with 100% renewable electricity.
More Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the sparkling wine market, presenting historical demand data (2016-2020) and forecast statistics from 2021 to 2031.
The study divulges essential insights on the market based on sales channel (modern trade, grocery store, convenience store, e-commerce and other retail format), body type (light bodied, medium bodied and full-bodied) and sweetness level (extra-brut, brut, extra dry and demi-sec) across seven major regions (North America, Latin America, Europe, South Asia, Oceania and Middle East & Africa).
About the Food & Beverage Industry at Fact. MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned food & beverage team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over a thousand reports and 1 million-plus data points, the team has analyzed the food & beverage industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
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Sr. Consultant – Food and Beverages