2024
9
UK Still, Sparkling and Fortified Wine Market Report 2024
2024-10-31T12:03:55+00:00
REPD0FCA86E_FB93_4BEC_836B_611130E3CC14
2195
177037
[{"name":"Wine","url":"https:\/\/store.mintel.com\/industries\/drinks\/alcoholic-drink\/wine"}]
Report
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Wines have lost out in 2023-24 as consumers limited discretionary spending, with rising prices in the category acting as a further deterrent. Category volume sales should pick up in 2025-26…
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  10. UK Still, Sparkling and Fortified Wine Market Report 2024

UK Still, Sparkling and Fortified Wine Market Report 2024

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Gain a data-backed perspective on the UK wine market with this report. How and why do consumers drink wine? What are the motivations to spend more on wine? When do most decide to purchase wine? Answer critical industry questions and grow your insight strategy today.

UK Wine Market – Current Landscape

  • Wines have lost out in 2023-24 as consumers limited discretionary spending, with rising prices in the category acting as a further deterrent. Category volume sales should pick up in 2025-26 as real income growth strengthens, but the alcohol moderation trend will continue to pose headwinds.
  • Widespread alcohol moderation/reduction, with 59% of adults either limiting or not drinking alcohol, makes further innovation in low-/no-alcohol wines essential to maintain category sales. However, brands will need to address barriers to uptake of these variants, including concerns over their being highly processed and low quality.
  • A canned wine from a favourite brand appeals to 40% of category drinkers (61% of 18-34s). Further NPD in canned wines would be timely, these formats being able to appeal both as a means to moderate alcohol intake and on environmental grounds.

UK Wine – Market Statistics

  • UK wine market size: Estimated at nearly £15 billion in 2024, values sales of still, sparkling and fortified wine grew by more than 10% over 2019-2024, driven by rising prices.
  • Wine purchase occasions: Drinking wine at home is the leading reason for purchase by a significant margin, reflecting the fact that eating and drinking out is an infrequent treat for most people.
  • Wine consumer behaviour: Three in ten drinkers seen low-/no-alcohol wines as poor quality, likely based on past experiences and not assumptions. This highlights the need to continue to improve processes and recipes.

UK Wine Market Report – What’s Inside?

 

Key Topics Analyzed in the Report

  • The impact of inflation on value and volume sales of still, sparkling and fortified wine in the on- and off-trade.
  • Key in- and out-of-home purchase occasions for still and sparkling wines, including as a meal accompaniment and for celebrations.
  • Leading attributes people are prepared to pay more for in wine, including quality awards and sustainability.
  • Consumers’ usage of and attitudes towards low-/no-alcohol wine, including barriers to greater take-up.
  • Consumers’ usage of and attitudes towards alternative packaging formats to standard glass bottles, including cans and bag-in-box.

 

Report Scope

This Report analyses the UK market for still, sparkling and fortified wines, including sales through both the off- and on-trade. Coverage in the Report is restricted to wines of fresh grape, produced from the naturally fermented juice of the grape and includes low and non-alcoholic varieties.

The on-trade includes premises with a licence to serve alcohol for consumption on the premises, mainly pubs/bars but also nightclubs, hotels and the hospitality sector.

Still wines

Red, white and rosé wines are the three main types of still wines covered, with lower-alcohol wines (from 5.5% ABV), boxed wines and dessert wines also included here.

Semi-sparkling wine, defined as having a pressure of less than three bars, is included with still wines in HMRC data and is covered by this Report.

Fortified wines

Fortified wine is wine with an added distilled beverage, which is usually brandy. These wines differ from spirits made from wine as fortified wines have a spirit added to them. There are a wide range of styles, with the best known being port, sherry, Madeira and vermouth. Also included are British fortified wines, Montilla and ginger wine.

Excluded from the Report

Drinks made from concentrated grape juice, fruit wine, mead and cider and perry are excluded from this Report.

Meet the Expert Behind the Analysis

This report was written by Alice Baker. Alice analyses and writes on the UK Food & Drink sector, having joined Mintel in January 2016. She has previously worked for the International Meat Trade Association and in local government. She holds a BA in History and an MA in History of Political Thought from University College London.

Brands cannot ignore the low-/no-alcohol opportunity, given increased moderation, but they will need to improve the image of these drinks to succeed.

Alice Baker, Mintel AnalystAlice Baker
Food and Drink Analyst

Collapse All
  1. Executive Summary

    • Key issues covered in this Report
    • Overview
    • Opportunities for the still, sparkling and fortified wine market
    • Improve low-/no-alcohol wines’ image to support category volume sales
    • A focus on at-home occasions remains pertinent
    • Canned wines have multiple points of appeal
    • Market dynamics and outlook
    • Market size & forecast
    • Market predictions
    • Volume sales decline faster in the on- than off-trade in 2024; value sales grow due to inflation
    • Graph 1: value sales of still, sparkling and fortified wine, by on- and off-trade, 2022-24
    • Still wine dominates the wine category, with red and white varieties leading
    • Graph 2: retail value sales of wine, by segment, 2022-24
    • Leading brands lose out to own-label in various segments
    • Graph 3: Retail value sales of still wine, by top five brands and own-label, 2021/22-2023/24
    • Inflation in wine and spirits slows in 2024 but remains ahead of all-items inflation
    • Graph 4: RPI inflation for wine & spirits and all items, 2020-24
    • Increased alcohol moderation has eroded category sales and will continue to pose headwinds
    • Graph 5: [no title]
    • What consumers want and why
    • Two in three people drink wine; still white and red varieties lead on purchasing
    • Graph 6: frequency of drinking wine, 2024
    • At-home occasions lead for both still and sparkling wines
    • Graph 7: purchase occasions for still and sparkling wine, by type, 2024
    • Quality awards and sustainable production are among top attributes shoppers would pay more for
    • Graph 8: attributes deemed worth paying more for in wine, 2024
    • Need to improve low-/no-alcohol wines’ image; good opportunities for canned wines
    • Graph 9: behaviours relating to wine, 2024
    • Raise consumer awareness of the environmental advantages of alternative wine packaging formats
    • Graph 10: attitudes towards wine, 2024
    • Innovation and marketing
    • Low-/no-alcohol launches continue; brands and retailers explore alternatives to standard glass bottles
    • Examples of new product trends in the wine category in 2024
    • Advertising spend on wine rises in 2023; retailers dominate spending
    • Graph 11: Total above-the-line, online display and direct mail advertising on still, sparkling and fortified wine, by top 5 advertisers, 2022-24 (sorted by 2023)
  2. Market Dynamics

    • Market size
    • Inflation drives category growth over 2019-24
    • Graph 12: total value sales of still, sparkling and fortified wine, 2019-24
    • Market forecast
    • Improved on-trade performance to boost value sales in 2026; slower inflation for 2027-29
    • Boost to volume sales in 2025-26 will prove short-lived amid growing alcohol moderation
    • Value sales growth to outpace volume sales over 2024-29
    • Graph 13: forecast for growth in total value and volume sales of still, sparkling and fortified wine, 2024-29
    • The category should recover better from the 2022-23 income squeeze than from the 2008-09 recession
    • Graph 14: value and volume sales growth/decline in the wine category, 2008-14
    • Channels to market
    • On-trade loses ground to off-trade as consumer spending remains cautious
    • Graph 15: value sales of still, sparkling and fortified wine, by on- and off-trade, 2022-24
    • Retail market segmentation
    • Still wine dominates retail sales; champagne and fortified wines see the steepest declines
    • Graph 16: retail value sales of wine, by segment, 2022-24
    • Red and white dominate retail still wine sales
    • Graph 17: retail volume sales of still wines, by type, 2022-24
    • Graph 18: retail value sales of still wines, by type, 2022-24
    • Rosé wines outperform other varieties in 2024
    • Market share
    • Retail still wine market is highly fragmented
    • Graph 19: retail value sales of still wine, by top five brands, 2021/22-2023/24
    • Leading still wine brands lose out as shoppers economise
    • Graph 20: growth in retail value and volume sales of top five still wine brands and own-label, 2023/24*
    • Freixenet loses out as shoppers switch to cheaper alternatives
    • Graph 21: retail value sales of sparkling wine, by top five brands and own-label, 2021/22-2023/24
    • Leading Champagne brands lose sales as shoppers continue to limit spending on luxuries
    • Graph 22: retail value sales of Champagne, by top five brands and own-label, 2021/22-2023/24
    • Inflation drives value sales growth for leading fortified wine brands in 2023/24
    • Graph 23: retail value sales of fortified wine, by top five brands and own-label, 2021/22-2023/24
    • Market drivers
    • Weaker financial wellbeing than in 2021 drives down wine sales in 2023-24
    • Graph 24: the financial wellbeing index, 2016-24
    • Consumer confidence is crucial for wine sales
    • Graph 25: the financial confidence index, 2016-24
    • Wine and spirits inflation continues to run ahead of all-items inflation
    • Graph 26: RPI inflation for wine & spirits and all items, 2020-24
    • Pub and bar numbers decline over 2018-24
    • Graph 27: total pubs and bars, 2018-23
    • Global wine production falls to a sixty-year low in 2023
    • Strengthened alcohol moderation trend erodes category sales in 2023-24
    • Graph 28: alcohol reduction and non-usage, 2022-24
    • Consumers’ increased commitment to healthy eating will further encourage alcohol moderation
    • Graph 29: how often people try to eat healthily, 2021-24
    • Alcohol moderation trend could boost sales of low-/no-alcohol wines, but these also have barriers to overcome
    • Even moderate drinking carries increased cancer risk, finds university study
  3. What Consumers Want and Why

    • Usage of wine
    • Two in three people drink wine, but most only do so occasionally
    • Graph 30: frequency of drinking wine, 2024
    • Usage is higher among the financially better off
    • Graph 31: frequency of drinking wine, by how people describe their household finances, 2024
    • Still red and white wines lead on purchasing
    • Graph 32: purchase of wine, by type, 2024
    • Standard glass bottles lead over other formats by some distance
    • Graph 33: purchase of wine, by format, 2024
    • Younger adults favour smaller wine formats
    • Graph 34: purchase of wine, by format, by age group, 2024
    • Standard-strength wine dominates, but a quarter buy low-/no-alcohol versions
    • Graph 35: purchase of wine, by strength, 2024
    • Under-35s are the most likely to opt for low-/no-alcohol wine
    • Graph 36: purchase of wine, by strength, by age group, 2024
    • Purchase occasions for still and sparkling wine
    • At-home occasions lead for both still and sparkling wines
    • Graph 37: purchase occasions for still and sparkling wine, by type, 2024
    • A focus on at-home occasions has continued relevance for still and sparkling wines
    • Still and sparkling wines outperform other alcoholic drinks as meal accompaniments
    • Graph 38: drinking of still and sparkling wine with meals at home and in the on-trade, by type, 2024
    • Make meal pairing prompts more prominent at POS
    • Place meal pairing prompts outside the wine aisle to boost visibility
    • Meal deals help to drive wine purchase
    • Explore meal pairing prompts more widely in the on-trade
    • A focus on at-home celebrations remains pertinent
    • Graph 39: drinking of still and champagne/sparkling wine at a celebration at home, 2024
    • Wines that offer a talking point are a good fit for at-home social occasions
    • Target at-home celebrations to boost take-up of low-/no-alcohol wines
    • Attributes deemed worth paying more for in wine
    • Multiple options to add value in wine, but no ‘silver bullet’
    • Graph 40: attributes deemed worth paying more for in wine, 2024
    • Awards and sustainability are among leading added-value factors for wine
    • Under-35s are especially willing to pay more for award-winning wine
    • Graph 41: those who would pay more for award-winning wine, by age group and how they describe their household finances, 2024
    • Draw attention to awards in store as well as in marketing
    • At-home celebrations and pub visits are among key occasions to target with award-winning wines
    • Nearly a quarter are willing to pay more for sustainably produced wines, but this does not always translate into action
    • Sustainably produced wines have good potential both in the immediate and longer term
    • Signpost sustainable wine choices more prominently at POS
    • Promote sustainable aspects as enhancing wine’s treat status
    • Graph 42: those saying they drink alcohol to treat themselves, by usage of different types of wine, 2023
    • Sustainable wines can appeal for a variety of occasions, both in and out of home
    • Graph 43: those who would pay more for sustainably produced wine, by occasions for which they have bought still and sparkling wines, 2024
    • Behaviours relating to wine
    • The majority of wine drinkers would opt to drink less rather than choose low-/no-alcohol versions
    • Graph 44: behaviours relating to wine, 2024
    • Need to improve low-/no-alcohol wines’ image to support category volume sales
    • Address the barriers to drinking low-/no-alcohol wine to grow uptake
    • Views of low-/no-alcohol wines as highly processed deter half of drinkers
    • Graph 45: those who are put off drinking low-/no-alcohol wines by concerns that they are highly processed, by age group, 2024
    • Explain the production methods for low-/no-alcohol wines
    • Guinness detailing its dealcoholisation methods offers cues for wine
    • Highlight traditionally lower-ABV wines; wine spritzers hold promise
    • Three in ten drinkers see low-/no-alcohol wines as poor quality
    • Quality awards are among means to boost low-/no-alcohol wines’ image
    • Graph 46: attributes deemed worth paying more for in wine, by views of low-/no-alcohol wines as poor quality, 2024
    • Canned wines hold promise
    • Good opportunities for canned wines
    • Smaller formats can help to drive sales amid alcohol moderation trend
    • Graph 47: interest in canned wines, by usage frequency for wine, 2024
    • Cans help to drive trial of new variants…
    • …including low-/no-alcohol
    • Raise consumer awareness of cans’ green credentials to win over eco-conscious shoppers
    • Use prompts at POS to drive purchase of canned wines for outdoor occasions
    • Attitudes towards wine
    • Most people (incorrectly) see glass bottles as better for the environment than plastic packaging
    • Graph 48: attitudes towards wine, 2024
    • Need for brands to prove the environmental advantages of alternatives to standard glass bottles
    • A few brands highlight the reduced environmental impact from lightweight packaging formats
    • Less than half of drinkers are aware that bag-in-box formats help to preserve wine’s freshness
    • Flag up bag-in-box’s ability to keep wine fresh prominently on-pack
    • Outline bag-in-box wines’ advantages for alcohol moderation and suitability for ‘ordinary’ occasions
    • Asda suggests usage occasions for its bag-in-box wines on-pack
    • Emphasize how bag-in-box is an environmentally friendly choice
  4. Innovation And Marketing Trends

    • Launch activity and innovation
    • Low-/no-alcohol launches continue, with many taking a premium positioning
    • Brands continue to launch lower-ABV options
    • Brands and retailers continue to take steps to improve the sustainability of their packaging
    • Wine brands call out their sustainable practices
    • Further activity in canned wines in 2023-24
    • Challenger brands and specialist retailers explore new alternatives to standard glass bottles
    • Own-label raises the competition for brands
    • Own-label wine releases in 2023-24 spotlight lesser-known varieties and countries
    • Celebrity launches continue
    • ‘Rebellious’ brands look to shake up the wine category
    • Advertising and marketing activity
    • Advertising spend on wine rises sharply in 2023
    • Graph 49: total above-the-line, online display and direct mail advertising on still, sparkling and fortified wine, by top 5 advertisers, 2022-24 (sorted by 2023)
    • Laithwaites emphasizes its expertise and care taken to source the best wines
    • Tesco highlights its loyalty-scheme-exclusive discounts on wine
    • Morrisons portrays its wines as an ideal choice for Mother’s Day
    • Supermarkets and specialist wine retailers target sporting fixtures in 2024
    • Casillero del Diablo celebrates the “spark” of inspiration
    • Wine brands look to project aspirational lifestyle image through holiday giveaways
    • Various brands focus on at-home celebrations in 2023-24
    • Fortified wine brands look to shake up their image
    • Niche wine brands look to raise their profile in 2024 through music-themed initiatives
    • Graph 50: use of free and paid-for streaming services to listen to music in the last three months, by selected age groups, 2024
  5. Appendix

    • Supplementary data
    • Appendix – channels to market
    • Appendix – retail market segmentation (1)
    • Appendix – retail market segmentation (2)
    • Appendix – still wine value sales – brands
    • Appendix – still wine volume sales – brands
    • Appendix – still wine value sales – brand owners
    • Appendix – still wine volume sales – brand owners
    • Appendix – sparkling wine value sales – brands
    • Appendix – sparkling wine volume sales – brands
    • Appendix – sparkling wine value sales – brand owners
    • Appendix – sparkling wine volume sales – brand owners
    • Appendix – Champagne value sales – brands
    • Appendix – Champagne volume sales – brands
    • Appendix – Champagne value sales – brand owners
    • Appendix – Champagne volume sales – brand owners
    • Appendix – fortified wine value sales – brands
    • Appendix – fortified wine volume sales – brands
    • Appendix – fortified wine value sales – brand owners
    • Appendix – fortified wine volume sales – brand owners
    • Market forecast data and methodology
    • Market forecast and prediction intervals (value)
    • Market forecast and prediction intervals (volume)
    • Forecast methodology
    • Report scope and definitions
    • Market definition
    • Market definition (continued)
    • Abbreviations and terms
    • Consumer research methodology
    • Infegy Atlas – coverage
    • Nielsen Ad Intel coverage

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