The year 2023 is ushering in good news for the wine market — it’s finally growing. The growing urban inclination for exotic wine, surging demand for alcoholic beverages, and rising consumer socialization with liquors are fueling the market growth.
On the industry side, significant players are leaning into new product launches and partnerships, which the report predicts will increase the wine market’s growth.
The global wine market, according to Acumen Research and Consulting, accounted for $489.3 billion in 2021 and is estimated to grow to a market size of $825.5 billion by 2030, growing at a CAGR of 6.1% from 2022 to 2030.
The good news
The industry should receive this projection as encouraging news after a few years of pandemic stress and millennials not buying into the wine industry in the same way their boomer predecessors have.
Online alcohol sales rose 167% in 2020. More acceptance of liquor consumption in social settings has helped. In addition, consumers’ desire to travel has increased, and they are seeking activities that serve alcoholic beverages while vacationing. New urban wineries are helping fuel the market growth as well, becoming tourist destinations.
On the e-commerce side, pandemic-era policies of allowing wineries to sell and ship wine online gives more customers more access to wines. Gone are the days of traveling to Napa Valley to sign up for a wine club. Wine lovers now need only head to their computers.
Rising demand for alcoholic beverages that have health advantages will also help aid market growth. In addition, consumers are seeking out low-calorie drink options, giving the wine market an avenue to shine. For example, Kim Crawford released its Illuminate Sauvignon Blanc, which promises its signature crisp, dry taste for only 70 calories a glass.
Barriers to growth
In order to achieve this predicted high growth, the industry will need to watch for its constraints, which include a gradual shift of consumers picking other alcoholic drinks, such as Ready To Drink cocktails and specialty beers.
Key players will need to deal with the increasing prices of wines due to high manufacturing costs. If wine becomes too expensive, it can price out an entire segment of customers.
In order for the wine market’s growth to flourish worldwide, the industry needs to continue to gain millennial and, as they come of age, Gen Z customers, and keep from losing them to craft cocktails and specialty beers.
How key industry players can use data to fuel growth
Data can be one of the most helpful tools in any industry’s growth.
Focusing on data that can lower costs for the wine industry will be critical during this time of overall economic inflation. But by analyzing the data, winemakers can maximize shipping routes to ensure trucks are full and being sent to liquor stores and restaurants that can turn the most significant sales and profits.
Data can also help distributors see which products are selling well and which aren’t worth the production costs. For example, many key players are phasing out bottles in the $11 category to focus on premium wine.
Finally, data is most readily available on e-commerce sites. Brands and distributors use this information to see where their best customers are coming from, and it allows them to maximize advertising and target those avenues.
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