MARKET OVERVIEW- GLOBAL SPARKLING WINE MARKET
Sparkling Wine is basically similar to wine but contains large amounts of bubbles in it. These bubbles make the wine fizzy, and large amounts of carbon dioxide in it make the wine sparkle. Sparkling wine is either red or white or rose type. There are examples of red sparkling wines such as the Italian Brachetto, Bonarda and Lambrusco, and the Australian sparkling Shiraz. Sparkling Wine is made from fermented grape juice. The wine can be made with virtually any grape, although chardonnay and pinot noir are the most commonly used grapes for sparkling wine. While Champagne and Prosecco are both sparkling wines, not all sparkling wines can be classified as Champagne or Prosecco. Many people use flute glasses for drinking wine but a wider tulip-shaped glass is best. Champagne may be the most famous sparkling wine in the world as it is made in the region of Champagne, France and it is made from special grapes such as Chardonnay, Pinot Noir, and Pinot Meunier grapes.
MARKET DRIVERS
The increasing alcohol socialization among consumers along with the increasing adoption of European culture will be the major driving factor behind the market growth. The high standard of living and cultural celebration also contributes to the growth. Fast-paced urbanization and rapid socioeconomic changes coupled with continuous rise in living standards across countries are propelling the demand for sparkling wines. In Asia region, the rising urbanization, individuals are becoming more aware of the importance of living a healthy lifestyle, and the adoption of wine as well as the growing influence of social media in developed countries impact the lifestyles of Younger generations, consumer spending on high lifestyle will boost the market growth. In North American region, the increasing demand for wine among youth fuel the market growth. For instance, according to the Organic Trade Association (OTA), organic wine sales in the United States surpass US$ 373 million in 2020, a 17.6% increase from 8.7% in 2019. Therefore, these factors are attributed to the market growth over the forecast period.
MARKET OPPORTUNITIES
Sparkling wine has been making its move from purely celebratory to refreshingly mainstream will bring opportunities over the forecast period. The sparkling wine has a fizzy effect and an upscale reputation. Sparkling winemakers are expanding their customer base and introducing refreshingly new and accessible ways to enjoy this beverage any day other than luxury events and special occasions. More global demand for this style of wine is creating a greater need for services in this industry and opportunities for more innovation than ever before. Some companies specialize in the products and services that sparkling wine producers need to refine their craft and expand their operations to meet demand. For example, Rack & Riddle offers guidance through the custom crush grape-to-bottle process. This includes crushing, lab work, storage in barrels or tanks, tirage bottling, aging, disgorging, corking, foiling, caging, labelling, packing, and palletizing wines for pickup.
MARKET RESTRAINTS
Sparkling wine is affected by some side effects that will restrict the market growth. For example, an average glass of sparkling wine may contain close to 100 calories. The alcohol content in sparkling wine can affect your metabolism. It also causes insomnia as it disrupts the most important phase of your sleep. In addition, however, the alcohol content can also increase the risk of cancer, especially lung and breast cancer. This factor may hinder market growth.
MARKET GROWTH CHALLENGES
The Sparkling wine is challenged by climate change. One of the major challenges facing Champagne in maintaining quality arises from the increase in average growing season temperatures is the key challenge for the Champagne industry. In the last two decades, heat waves have caused record-breaking temperature spikes, including 46.1 degrees Celsius—or 114.98 degrees Fahrenheit which affects the quality of grapes and production.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Sparkling Wine market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With the increasing demand for various Sparkling Wines in various applications and the consumption of sparkling wine becoming a social trend in many developing countries, is expected to propel growth at a specific CAGR from 2021-2028.
SPARKLING WINE MARKET SEGMENTAL OVERVIEW
The global Sparkling Wine market comprises different market segments like type, product, price point, sales channel and geography.
SPARKLING WINE MARKET BY TYPE
By type, Sparkling Wine includes key segments of
Red wine held the major sparkling wine market share. There have been a lot of health benefits associated with the consumption of red wine and that is the primary reason that red wine gets more praise and attention due to its rich, dark fruit flavors and tannins. Tannis is responsible for pleasant sensations when drinking red wine White wine is known to be more refreshing, fruity, and citrusy. The research report by the YouGovAmerica, Red wine (69%) is the most popular among wine-drinking adults, though majorities also say they like white wine (65%) or rosé (55%).
SPARKLING WINE MARKET BY PRODUCT
The Sparkling Wine market is divided by product such as
- Champagne
- Cava
- Prosecco
- Sekt
- Cremant
- Espumante
- Sparkling Rose
The Prosecco segment is anticipated to gain a major market share in the future. The growth of the segment is attributable to many factors. Prosecco is noticeably cheaper than Champagne which of course plays a role in its popularity. It is less expensive to produce than Champagne because its fermentation takes place in stainless steel tanks. Supermarkets are continuing to notice unprecedented figures in relation to prosecco sales. Sainsbury’s own-brand prosecco is increasing its sales 40% year on year, while Tesco has noticed a 26% increase in the sale of all the prosecco brands it sells.
SPARKLING WINE MARKET BY PRICE POINT
The Sparkling Wine market is divided by Price Points such as
The economy segment is expected to rise over the forecast period. The increasing consumer spending and high living standards coupled with increasing disposable income will drive the market growth. The economy Price range is easily adopted by everyone and is still affordable. These factors are attributed to the segment growth over the forecast period.
SPARKLING WINE MARKET BY SALES CHANNEL
The Sparkling Wine market is divided by sales channels such as
- Supermarket/Hypermarket
- Specialty Stores
- On Trade
- Others
The specialty stores segment is dominant and going to be led at a significant pace over the forecast period. The specialty stores are ideal for selling specialty sparkling wine. Wine retailers are specially opted for specialty stores.
On Trade option is also to be grow at significant pace over the forecast period. On trade option is ideal and offer good opportunity platform for ecommerce growth.
SPARKLING WINE MARKET BY GEOGRAPHY
The global Sparkling Wine market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
Europe region is expected to be a leader in the sparkling wine market. Europe is the largest producer of wine In 2021, the EU’s sparkling wine exports to countries outside the EU amounted to 636 million liters, a significant increase of 29% compared with 494 million liters exported in 2020. In the Europe region, Italy is the largest country with 660 million bottles followed by France and Germany with 550 million bottles and 350 million bottles. The remaining 20% is made by several different countries. The main reasons behind Europe’s growth are there is so many great sparkling wines being produced in Europe
COVID-19 IMPACT ANALYSIS ON THE GLOBAL SPARKLING WINE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global Sparkling Wine market. In addition, a complete analysis of changes in the global Sparkling Wine market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of a pandemic on global economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
COVID-19 has severely impacted the wine industry, with producers in different countries affected differently and, therefore, differing in their perceptions toward it. Globally, the wine market experienced a very strong contraction in the spring of 2020. The on-premise wine market collapsed with lockdowns limiting business and the movement of people in many wine-consuming countries. Despite this e-commerce has grown exponentially in 2020 and there had been a spike in online wine sales. In particular, entry-level and mid-range wines or bag-in-box wines are preferred by consumers. The average value of wine has decreased in 2020, breaking the positive general trend of the last decade. During the March-June period, the average price of wine decreased by -12% (from 3.05 €/l to 2.69 €/l). In addition, sparkling wine decreased by -30% in value and more than -10% in volume. These stats had shown that the market has impacted by COVID 19.
COMPETITIVE LANDSCAPE ANALYSIS
The Sparkling Wine market has leading operating players that are majorly focused on expanding the global growth of the Sparkling Wine industry with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the Sparkling Wine sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- Bronco Wine Company
- Bacardi Limited
- Accolade Wines
- Constellation Brands Inc.
- Caviro Extra S.p.A.
- Illinois Sparkling Co.
- Quady Winery
- California Champagnes
- Pernod Ricard
- Moet Hennessy USA
- The Sparkling Wine Co.
- E & J Gallo Winery
- Freixenet
- Dom Perignon
- Treasury Wine Estates Ltd
RECENT DEVELOPMENT:
July 2022: Bacardi Limited has announced its MARTINI that achieves sustainability landmark and the company has also launched Martini Asti sparkling wine in the UK that has been formulated to be served over ice.
Oct 2021: Constellation Brands Inc has acquired Sapere Aude Sparkling Wine. These acquisition deal will give the company to chance to grow its sparkling wine portfolio.
