Still Wine Market Industry Trends and Opportunity Analysis, 2018-2025

Posted October 25, 2018 by aprilcota

Still Wine Market report categorizes the global market by product type (Still Red Wine, Still White Wine, and Still Rose Wine), and by distribution channel (Hypermarkets, Supermarkets, Specialty Stores, Online Stores, and Others)

Still wine is a kind of table wine, which is specially treated to remove carbon dioxide, in order to make it non bubbly or fuzzy. Grapes are the most widely used raw material for still wine manufacturing. Manufacturing of still wine includes various processes such as sorting of raw material, crushing, maceration & pressing, fermentation, maturation, bottling, and bottle aging. Majority of wines are developed for immediate drinking, whereas some wines are manufactured to get benefits from bottle aging in optimum cellar conditions.

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Market Dynamics

Increasing popularity of alcoholic beverages such as wine and beer in the high millennial population (above the legal drinking age) is expected to be the major factor for growth of the market. According to Millennial Engagement Initiative Report 2017, in 2014, over 36% of the U.S. workforce comprises millennial generation and nearly half (46%) of all the U.S. work force is projected to be millennial by 2020. Such factors are projected to create conducive environment for growth of the still wine market over the forecast period.

Moreover, increasing investment by leading market players to expand wine production capacity to better serve the needs of local customers is an important factor for growth of the market. For instance, in November 2016, Accolade wines invested US$ 40 million into Berry Winery, to establish new packaging and glass bottling plant. The new facility possesses a bottling capacity of 8 million cases of wine annually.

Government across various regions have imposed strict regulations on wine products. For instance, European Union established a set of allowed and not-allowed oenological practices. Under this practice, all wine imported into Europe needs to be certified. The certification and wine analysis report must be presented within single document. In addition to this, legislations such as allergen declaration, labelling & presentation, food laws, and various others are strictly imposed on wine. These factors could act as a restrain to the market growth.

Market Outlook

On the basis of distribution channel, supermarkets segment is projected to gain major traction in the market over the forecast period. In International Wine Challenge 2018, over 391 supermarkets such as Morrison, Waitrose, Tesco, and various others received awards for their offerings in variety of wines. As a part of long term sales and marketing strategy, supermarkets are engaged in launching new still wine products to receive acknowledgment in International Wine Challenge. For instance, in November 2017, Tesco launched a Grenacha-Rose and a Sauvignon Blanc, two new low alcohol still wines, in order to meet rising demand for still wines in the U.K.

Europe is a well-established market for still wine and accounted for highest revenue share in global still wine market in 2017. In Europe, countries such as France, Italy, Spain, and Germany are the leading producers of still wines. According to United States Department of Agriculture 2017 Report, on Germany Wine Industry, total consumption of still wine and sparkling wine fluctuated between 19.3 and 20.5 million hl during 2015-17. Moreover, per capita consumption of wine increased between 20.1 and 21.1 liters in 2017. In 2015, Germany imported over 1.5 billion liters of wine, which included 58% of bulk wine, 37% bottled wine, and 4% sparkling wine. These factors are expected to aid in growth of still wine market in Europe.

Asia Pacific is projected to be the fastest growing region in the market over the forecast period. In Asia Pacific, China, Australia, and ASEAN are projected to gain major traction in still wine market over the forecast period. According to Agriculture and Agri-Food Canada 2016 Report on China Wine Market, the wine sales in China was pegged at 2,466 million liters in 2015. This is projected to grow by 75% by the end of 2019, reaching 4,320 million liters.

Key players

Key players operating in the global still wine market include E. & J. Gallo Winery, Constellation Brands, Inc., Miguel Torres S. A., The Wine Group Inc., Treasury Wine Estate, Castel Group, Accolade Wines, Concha y Toro, and among others.

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Several companies that manufacture still wine are adopting various growth strategies, in order to sustain their market position. Mergers, acquisitions, and collaboration in various geographies are some of key strategies followed by major players in the still wine market. For instance, in June 2016, E. & J. Gallo Winery acquired Orin Swift Cellars, a well-known wine brand. The acquisition included rights for Orin Swift Cellars wine brands, related inventory along with the control of popular wine tasting room located at St. Helena. Furthermore, in February 2016, E. & J. Gallo Winery acquired distribution rights for Renato Ratti, an Italy-based wine manufacturer, in the U.S. market. Such activities are creating a conducive environment for growth of the market.

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Issued By Mr. Shah
Country United States
Categories Business
Tags Still Wine Market , Still Wine Market size
Last Updated October 25, 2018