Global Wine Sector will reach $385.2 Billion by 2021

23/08/2017 According to a new report from market research firm ReportLinker, the global wine industry is now forecasted to grow at a 4.7% compound annual growth rate (CAGR) from 2016–2021.

According to a new report (“Opportunities In the Global Wine Sector”) from market research firm ReportLinker, the global wine industry is now forecasted to grow at a 4.7% compound annual growth rate (CAGR) from 2016–2021,leading to a $385.2 billion industry in less than five years. Most of the growth in the wine industry is coming from rapidly growing emerging markets, especially those in Asia-Pacific.

As the report points out, there are three key factors responsible for the continued growth of the global wine sector — the increasing percentage of young drinkers reaching the legal drinking age, a pattern of economic growth in emerging markets, and the rising disposable income of the middle class in those nations. It all adds up to a perfect storm for winemakers looking to boost their sales — they are able to sell their products to young, upwardly mobile consumers in nations where economic growth is lifting many people into the middle class.

While the global wine industry is growing at an overall rate of 4.7%, that doesn’t mean that growth is evenly distributed worldwide. The two regions showing the greatest rise in wine consumption are Asia-Pacific and Eastern Europe. In contrast, there is a pattern of falling consumption in the Middle East & Africa, Latin America, Western Europe, and North America.

That pattern of falling wine consumption in much of the world is leading to a situation where wine is losing market share in the global alcoholic beverage industry. In other words, in mature markets like Western Europe and North America, wine is losing market share to both craft brewers and distillers.

That being said, there are still several pockets of growth in the wine industry. One of these is the private label market. Overall share for private label products in the global wine sector stood at 9%, estimated to have risen from 2,090.4 million liters in 2011 to 2,229.9 million liters in 2016. Western Europe held the highest share of private label wine consumption, followed by North America with a volume share of 3.1%.

In terms of distribution, ReportLinker notes that hypermarkets and supermarkets are gaining as important distribution channels. Hypermarkets & Supermarkets was the leading distribution channel for the global wine sector, with a volume share of 41.2% in 2016, followed by the On Trade channel with a 26% share of total volume sales. The large share of Hypermarkets & Supermarkets can be attributed to the developed organized retail industry in major countries, where most consumers prefer to buy wine.

Continue reading at BTN News.

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