Analysis of Red Wine market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The red wine market revenue surpassed US$ 78 Bn by 2021, experiencing a long-term surge at a CAGR of over 5% until 2032. According to Fact.MR's analysis of the red wine industry was worth approximately US$ 75 Bn in 2020. Consumers are showing a greater inclination toward Shiraz and merlot wines, holding 13% of the revenue share.
Prominent regions are likely to capture governing share in the revenue contribution. Especially, Europe and North America owing to the growing sales of alcohol in the regions.
Red Wine Market Size (2022)
US$ 82 Billion
Projected Market Value (2032F)
US$ 135 Billion
Global Market Growth Rate (2022-2032)
North America Market Share (2022)
Europe Market Share (2022)
Market Share of Light-bodied and full-bodied red wines (2022)
Key Companies Profiled
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From 2017 to 2021, red wine sales expanded sluggishly, registering a CAGR of around 2%. This restrained growth was largely an outcome of the high premium nature of red wines combined with limited penetration across certain regions.
However, as disposable income levels surge, more people can access premium alcoholic beverages, paving way for increasing sales of red wine globally. Furthermore, when consumed in moderation, red wine offers various health benefits, including enhanced bone density, improved immunological function, and a lower risk of heart stroke.
According to Fact.MR- market research and competitive intelligence provider- the market is expected to reach approximately US$ 76 Bn by the end of 2021. In the long run, the market is poised to expand at a CAGR of 5% until 2032.
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Organic Wines are Generating New Growth Frontiers
The global organic wine sector has seen tremendous growth in recent years as a result of rising consumer demand. The growing popularity of organic wine among consumers has prompted manufacturers all over the world to increase their production capacity of wines brewed from organic grapes.
Studies have established that organic wines possess high antioxidant resveratrol levels which help fight free radicals, improve heart health, and decrease cholesterol formation. Besides, these wines also impart better taste.
This is a major driver of the organic or natural red wine market's growth. Furthermore, as customers become more health-conscious and aware of the presence of dangerous chemicals in food and beverages, they are more likely to switch to organic red wine consumption.
Rising Disposable Income, Greater Urbanization is Likely to Drive Market Growth
The demand for red wine is expected to be driven by rising disposable incomes, fast-track urbanization, and an increasing proportion of millennials. The food business is booming, thanks to the rising demand for recreational activities, which should help the red wine market flourish. Furthermore, in developing nations, changing lifestyles and increased acceptance of alcoholic beverages may boost expansion.
Furthermore, a preference for wine at major events or social gatherings is expected to bode well for the market for red wine. As consumers seek to indulge in their sensory experiences, they demand beverages that taste better and ascribe a sense of social acceptance. Hence, people are increasingly consuming red wine with different cuisines across major social occasions.
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Instances of Alcohol Abuse May Constrain Red Wine Sales
While red wine consumption has acquired greater social acceptance, growing concerns regarding alcohol abuse are expected to hinder future sales prospects. To prevent excessive indulgence, governments have levied heavy taxes on red wine purchases.
In addition, growth prospects are expected to remain restricted amid the prolonged nature of regulatory approvals by food safety authorities. Wine formulations have to go through intense scrutiny to ascertain the presence of potential microbes or other substances which may cause harm upon consumption.
New Entrants are Launching Unique Taste & Can Packaging to Catch Consumer’s Attention
Lucrative packaging in terms of wine includes the color, shape, and packaging of the red wine container. New start-ups are investing in packaging and labeling to get distinctiveness and centrality in their product. Besides, they are offering the service of wine suggestions based on the consumer’s feedback. For instance,
Several start-ups are integrating the small vendors and offering a platform for the customers to order their favorite wine from them. For instance,
North America leads the market by acquiring a 40% share in the global revenue collection. This market growth is attributed to the increased social dynamics and high spending capacity of consumers. In terms of country-wise share, the United States & Canada experience a surge in their growth rate owing to the upward trends and formulations of distinct varieties of wine.
In June 2022, 19 Crimes launched ‘Snoop Dog’, as part of a multi-year partnership with the entertainment icon. The first California blend for the brand, Cali Red, casts a contemporary lens on 19 Crimes, featuring Snoop Dogg as a modern-day culture creator and innovator.
According to Fact.MR, Europe is the biggest producer of wine in the world, however, maximum production is concentrated in the south. Conventionally, these countries are relatively close to foreign wines. Most opportunities for emerging countries can be found in other countries, such as the United Kingdom, the Netherlands, Austria, Germany, and Belgium. Owing to inadequate domestic production in these countries, consumers are more open to foreign wines. Though the Eastern European markets are still relatively small, red wine markets there are flourishing and also provide opportunities.
According to Fact.MR, demand for red wine is expected to be the highest in Asia, with China dominating the market. Notably, red wine consumption is more of a tradition in China, where the color red is regarded as auspicious.
Australia is the second largest wine consumer, followed by Japan. In addition, India is the fastest-growing country in terms of wine consumption, with a 7.05% annual growth rate. Other prospective wine-consuming markets in Asia-Pacific include the Philippines, South Korea, and Vietnam.
Due to a shift in consumers' alcohol consumption preferences and a high inclination toward meeting social dynamics, the United States is experiencing a high demand for red wine, expected to generate around 40% of global revenue.
North America is expected to dominate the market due to the presence of a population with high spending capacity in this region. Furthermore, the growing demand for red wine from the food service is propelling the market forward.
Consumers prefer sweet red wines because of their lower alcohol percentage than dry red wines, in addition to containing more residual sugar. These bottles have a lot of flavors and are rather sophisticated.
According to Fact.MR, demand for sweet red wine is expected to develop at a significant rate, expected to reach nearly US$ 78 Bn by the next half a decade. In the long-run, demand is expected to surge at a CAGR of 4% until 2032.
Shiraz and Merlot are the most popular red wines, with a combined market share of almost 13%. By the end of 2022, the Shiraz wine segment is expected to be valued at over US$ 11.7 Bn, and important players in the red wine industry should take notice.
In the case of Merlot, Europe alone accounts for more than half of the regional contribution to the red wine market, and this share is expected to remain constant over the forecast period.
The global market is highly fragmented with the presence of a large number of local and regional players. Market players are concentrating on product launches to broaden their market footprints.
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As per Fact.MR’s projections, the market for Red Wine in North America will likely expand at a 40% CAGR.
By 2032, the Red Wine landscape is slated to reach a valuation of US$ 135 Billion.
From 2022 to 2032, the Red Wine industry is poised to flourish at a 5% CAGR.
According to Fact.MR, a CAGR of 2.3% was recorded for the Red Wine market from 2017-2021.
As of 2022, Fact.MR expects the Red Wine industry to be valued at US$ 82.7 Billion.
The Shiraz and morlet type segment is expected to grow the fastest, at a CAGR of ~5%.
Based on body type, the Light-bodied and full-bodied red wines Red Wine segment for sales Red Wine captures the highest share, documenting a 5.1% value CAGR.
As of 2021, the Red Wine market was valued at US$ 78 Billion.
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