Fact.MR’s recent report on the red wine market anticipates global revenues to surpass US$ 78 Bn by 2022, experiencing a long-term surge at a CAGR of over 5% until 2031. According to Fact.MR's analysis on the red wine industry, it was worth approximately US$ 75 Bn in 2020. Consumers are showing greater inclination towards shiraz and merlot wines, holding 13% of the revenue share.
Key Points Covered in Red Wine Industry Analysis
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Conditions
- COVID-19 Impact on red wine Market and How to Navigate
- Recommendation on Key Winning Strategies
Consumption Analysis of Red Wine 2016-2020 Vs Future Outlook 2021-2031
From 2016 to 2020, red wine sales expanded sluggishly, registering a CAGR of around 2%. This restrained growth was largely an outcome of the highly premium nature of red wines combined with limited penetration across certain regions.
However, as disposable income levels surge, more people are able to 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- a 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 2031.
How are Organic Wines 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 helps fight free radicals, improves heart health and decreases 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.
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Rising Disposable Income, Greater Urbanization Driving Market Growth?
The demand for red wine is expected to be driven by rising disposable incomes, fast-track urbanization, and 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 their sensory experiences, they demand beverages which taste better and ascribe a sense of social acceptance. Hence, people are increasingly consuming red wine with different cuisines and across major social occasions.
Instances of Alcohol Abuse to Constrain Red Wine Sales?
While red wine consumption has acquired greater social acceptance, growing concerns regarding alcohol abuse is expected to hinder future sales prospects. In order 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.
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What Supports Increasing Red Wine Sales in Asia?
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.
What are the Factors Driving Revenue Generation in the U.S.?
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 foodservice industry is propelling the market forward.
Why are Sweet Red Wines Highly Preferred?
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 2031.
Shiraz and Merlot to Remain Most Popular Products?
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 in the red wine market, and this share is expected to remain constant over the forecast period.
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In the following decade, manufacturers in the red wine market will focus on strategic acquisitions, collaborations, and product releases.
TWE has introduced a four-strong Penfolds-branded red wine lineup made primarily from Napa Valley Cabernet parcels. The two higher-priced California Collection expressions are blended with a lower amount of South Australian Shiraz, so they aren't entirely Californian.
E. & J. Gallo Winery has completed the acquisition of more than 30 wine brands. The Federal Trade Commission approved the conclusion of the agreement between Gallo and Constellation on December 23, 2020.
Accolade Wines, based in Australia, has acquired Rolf Binder Wines of the Barossa Valley in northeast Adelaide for an undetermined amount. Rolf Binder possesses over 100 hectares of vineyards, and Rolf Binder Jr. manages the firm winery.
Market size value in 2022
USD 78 Billion
Market forecast value in 2031
USD 125 Billion
CAGR of 5% from 2021 to 2031
Historical Data Available for
|US$ Mn for Value & ‘000 Units for Volume|
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Segments Covered
- Cabernet Sauvignon
- Pinot Noir
- Cabernet Franc
- Other Red Wines
- Red Wines Sales through Modern Trade
- Red Wines Sales through Grocery Stores
- Red Wines Sales through Convenience Stores
- Red Wines Sales through E-commerce Platforms
- Red Wines Sales through Other Retail Formats
- Light Bodied Red Wine
- Medium Bodied Red Wine
- Full-Bodied Red Wine
- Dry Red Wine
- Semi-sweet Red Wine
- Sweet Red Wine
Red Wine Market- Scope of Report
A recent study by Fact.MR on the red wine market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering red wine.
The study also provides the dynamics responsible for influencing the future status of the red wine market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report.
A list of prominent companies operating in the red wine market, along with their product portfolios, enhances the reliability of this comprehensive research study.
The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of red wine across the globe.
A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of red wine during the forecast period. Price point comparison by region with global average price is also considered in the study.
Key Questions Answered in Report
- Which are the most lucrative red wine markets?
- Which factors will impact the growth of red wine?
- How will changing trends impact the strategies of market players?
- How can market players capture the low-hanging opportunities across regions?
- Which companies are leading the red wine industry?
- What are the winning strategies of stakeholders in the market?
Analysis on Market Size Evaluation
The market has been analyzed for each segment in terms of volume (‘000 Units) and value (US$ Mn).
Estimates at global and regional levels for red wine are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global red wine market.
Inspected Assessment on Regional Segments
Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the red wine during the forecast period.
Country-specific valuation on demand for red wine has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries has also been included in the report.
In-depth Analysis on Competition Analysis
The report sheds light on leading manufacturers of red wine, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering red wine has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.
Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the red wine domain.
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the red wine industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.
Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.
- FAQs -
As of 2020, red wine sales reached a value of nearly US$ 75 Bn according to Fact.MR
According to Fact.MR, the global red wine market surged at a CAGR of 2% from 2016 to 2020
From 2021 to 2031, the market for red wine is expected to surge at a CAGR above 5%
In terms of value, the global market for red wine is expected to clock US$ 125 Bn by 2031
Increased social acceptance of alcoholic beverages consumption coupled with documented health benefits is bolstering red wine sales
Sales of red wine across the U.S will likely account for 40% of global demand until 2031
As per Fact.MR’s analysis, red wine sales in India will likely register an annual increase of over 7% until 2031
Shiraz and Merlot wines will hold significant share, collectively generating 13% of global revenues
Sweet red wines will remain most preferred, generating US$ 78 Bn in revenue by 2025
Accolade Wines Australia Limited, Casella Family Brands, Caviro, Viña Concha y Toro SA, and Constellation Brands are some prominent red wine manufacturers
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.