Global Wine Market 2016-2020
Wine is an alcoholic drink produced by the fermentation of grapes or other fruits. It has various health benefits, if consumed in adequate amounts. Wine is the third-largest segment of the global alcoholic drinks market. The wine market has become mature in Europe, especially in Germany, France, and Italy. However, APAC has the most potential for the manufacturers and is growing at a rapid rate.
Technavio’s analysts forecast the global wine market to reach a global consumption of more than 30 billion liters during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global wine market for 2016-2020. To calculate the market size, the report considers the the revenue generated from the sales of wine products to individual consumers.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Wine Market 2016-2020
Technavio recognizes the following companies as the key players in the global wine market: Accolade Wines, Constellation Brands, E. & J. Gallo Winery, The Wine, Torres, Treasury Wine Estates, and Vina Concha y Toro.
Other Prominent Vendors in the market are: Distell, Global Drinks Finland, International Beverage Holdings, John Distilleries, Soyuz-Victan, and SPI.
Commenting on the report, an analyst from Technavio’s team said: “Emergence of private label brands is a trend emerging in the market that can affect the market during the forecast period. The retailers, especially the grocery stores, see private label as a profitable option with margins that are 10%-15% higher than national brands. Private label wines are wines made exclusively for a single retailer and are sold under the retailer’s brand, not the winery’s brand. Private label has a market share of about 5%-10% in the US wine retail market. Major grocery retailers such as Tesco and Aldi have come up with their own brands of wine and the penetration level of private label in some of the European countries is more than 50%. However, the biggest challenge to the growth of private label is the issue of quality. Most consumers are skeptical about the quality of the products offered by private labels. This can be overcome by providing wine products with good taste and quality to the consumers.”
According to the report, a growth driver of the market is the increasing wine production in developing countries and new markets. The consumption of wine is increasing around the globe, and it is mainly due to the increasing consumption of wine by the younger generation. To meet the increasing demand, the players in the market have increased the wine production around the globe, and this is expected to continue during the forecast period. In 2015, global wine production was about 274.4 million hectoliters, an increase of about 2% compared to 2014. The total wine yard area is also increasing around the globe, and this factor is also helping to increase the wine production.
Further, the report states that availability of counterfeit products will be a challenge for the market. The wine industry is facing a major threat from the growing market of counterfeit products. Counterfeit products are not only spoiling the brand image, but they are also hampering sales. In China, the illegal sales of homemade rice wine are hampering the growth of original wine. Also, there are incidences where several old, empty bottles of wine were purchased, which included a 1958 Chateau Lafite Rothschild, a 1928 Chateau Margaux, and a 1971 Romanee Conti, and the bottles were filled with counterfeit wine. In fact, a businessman spent about $5 million on 500-600 fake bottles of wine.
Accolade Wines, Constellation Brands, E. & J. Gallo Winery, The Wine, Torres, Treasury Wine Estates, Vina Concha y Toro, Distell, Global Drinks Finland, International Beverage Holdings, John Distilleries, Soyuz-Victan, and SPI.