Europe Wine Market - Growth, Trends, and Forecasts (2023 - 2028)

Europe Wine Market - Growth, Trends, and Forecasts (2023 - 2028)

The European wine market is expected to register a CAGR of 4.65% over the upcoming five years.

The European wine market is mature as wine has been a part of the vivid European culture and is still a part of the lifestyles of the regional people. Also, the rise in the consumption of wine with meals at home has led to market growth in this region. The changing lifestyle and increased spending of consumers on premium wines have led to the development of the market. Alongside this, the popularity of wine in social gatherings and different celebrations has enhanced the consumption of wine in the European market. For instance, according to the international organization of Vine and Wine, France had the highest wine-consuming population among European countries, with wine consumption standing at around 25.2 million hectolitres in 2021 followed by Italy with wine consumption standing at around 24.2 million hectolitres.

The wine market in the region is supported by increasing demand for wine due to its health benefits. Conversely, the premiumization of wine products coupled with innovation in flavor has further regulated the wine market in the region. The different varieties of wine available, with different tastes, attract the consumers further. For instance, in May 2022, Hardy’s one of United Kingdom’s known wine brands announced its plans to launch new wine varieties in can format. The 3 popular varieties company planned to launch include rose, chardonnay, and shiraz. However, as the consumers of the European region are swaying towards nutrition-packed beverages, the regional wine market is likely to progress steadily.

The European countries have been extensively manufacturing wines for ages as drinks have been a regular part of the traditional meals across the region. The large area under vineyards is giving rise to the increase in wine production on a large scale. For instance, according to the International Organisation of Vine and Wine, in 2021, Spain had the largest vineyard surface area in Europe with 964,000 hectares followed by France and Italy with 798,000 hectares and 718,000 hectares respectively. Therefore, the large area under vineyards aids the greater production of wine.

Additionally, owing to the high demand, a considerable land area was converted into vineyards, especially in the countries of Spain, Italy, France, and Turkey, as their local wines gained popularity across the globe. According to the United Nations Food and Agriculture Organization, in 2021, these four countries altogether cater to about 39.7% of the global vineyard surface area. Europe holds a large proportion of the entire vineyards in the world. The manufacturers, thus, procure grapes in bulks from these vineyards to produce wine at substantial prices, attracting consumers further. Moreover, the increased production due to the large vineyard area is increasing the innovation in terms of flavor, color, and packaging customizations has led to increased sales of wine.

The rising demand for white wine is escalating the growth of the European wine market. Although red wine is preferred in most places, the preference for white wine is rising in European countries. The trend of wine consumption at home is driving the demand further which is supported by the factor that people in Europe prefer to have wine with their meals frequently. For instance, according to HM Revenue and Customs, in 2021, in United Kingdom, 13.9 million hectoliters of wine were released for consumption by HM Revenue and Customs which increased from 13.7 million hectoliters in 2020.

The sales of organic white wine can be seen growing in the region, owing to the benefits it carries. White wine is known to help in weight loss and can also help in maintaining a healthy heart, keeping a person away from heart diseases. While many countries in the region demand white wine abundantly, the demand is certainly higher in Poland. For instance, according to Krajowy Ośrodek Wsparcia Rolnictwa, in the 2020/2021 season, the country produced 9398.38 hectoliters of white wine, which was an increase of about 800 hectoliters compared to the previous season. Additionally, with the rising preference for the product, companies are expanding their presence in different countries throughout the region. For instance, in 2021, the Italian super white wine was launched in United Kingdom. This wine hails from Collio DOC in Italy and is made of Friulano grapes. Such developments in the region are expected to boost the sales of the whole market during the forecast period.

The European wine market is competitive with the presence of several global as well as domestic players. The market is highly competitive with major players like Pernod Ricard, Campari Group, and Castel Group, among others. The major opportunity for the players to grab the market is by launching innovative solutions to cater to the market, amidst the stagnant market situation. The taste, type, and cost also play a major role in laying a heavy brand foundation. The global players have a strong hand due to their brand image and are, therefore, indulging in geographical expansions, while others are considering mergers, acquisitions, and partnerships to capture the regional market. The local wineries are developing new products with organic taste, owing to the traditionality of wine in the European region.

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