2020
9
UK Still, Sparkling and Fortified Wine Market Report 2020
2020-11-26T03:01:36+00:00
OX989520
2195
127995
[{"name":"Wine","url":"https:\/\/store.mintel.com\/industries\/drinks\/alcoholic-drink\/wine"}]
Report
en_GB
“While the COVID-19 outbreak gave a boost to retail wine sales, these are in the firing line for cutbacks in 2021 amid pressure on household incomes. Meanwhile consumers’ heightened health…

UK Still, Sparkling and Fortified Wine Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Still, Sparkling and Fortified Wine – UK market including the behaviours, preferences and habits of the consumer.The COVID-19 outbreak gave a boost to retail sales of wine while wiping out a significant chunk of on-trade sales. However, volume sales in both channels are liable to lose out in 2021 amid pressure on household incomes. Consumers’ heightened health consciousness prompted by the pandemic will also serve to accelerate the alcohol moderation trend.

Quickly Understand

  • The impact of COVID-19 on the still, sparkling and fortified wine market and the outlook?
  • How lockdown accelerates the shift towards at-home drinking?
  • Learn why Rose outperforms in the booming retail segment?
  • Launch activity in 2020 and future product development opportunities?
  • See why brands look to Social Media to drive engagement during Lockdown?

Covered in this report

Red, white androsé wines. Champagne,Sparkling wines,Cava,English sparkling wine,Prosecco,Fortified wine,Sherry & Brandy etc

Wines mentioned in no order: Hardys, Barefoot (E&J Gallo) ,Yellow Tail (Casella Family Brands) ,Casillero Del Diablo (Concha y Toro) ,McGuigan (Australian Vintage) ,Echo Falls (Accolade Wines) ,Blossom Hill (Treasury Wine Estates) ,Campo Viejo (Pernod Ricard) ,Isla Negra (est) (Concha y Toro) ,Gallo (E&J Gallo) ,Villa Maria ,Wolf Blass (Treasury Wine Estates) ,Oyster Bay ,Brancott Estate (Pernod Ricard) ,Trivento (Concha y Toro) ,Lindeman’s (Treasury Wine Estates) ,I Heart (Freixenet Copestick)^ 5 ,Oxford Landing (Oxford Landing Estates) ,Other brands and Own-label.

Expert analysis from a specialist in the field

Written by Alice Baker, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

While the COVID-19 outbreak gave a boost to retail wine sales, these are in the firing line for cutbacks in 2021 amid pressure on household incomes. Meanwhile consumers’ heightened health awareness will accelerate the alcohol reduction trend. Opportunities remain, however, for small bottles to appeal as offering portion control and a more accessible means to try premium products.
Alice Baker
Food & Drink Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
    • Still wines
    • Sparkling wines
    • Fortified wines
    • Excluded from the Report
  2. Executive Summary

    • Impact of COVID-19 on still, sparkling and fortified wine
      • Figure 1: Short, medium and long-term impact of COVID-19 on still, sparkling and fortified wine, 27 October 2020
    • The market
    • 2020 halts inflation-led value growth
    • Further inflation and weak volume sales ahead
      • Figure 2: UK total value sales for still, sparkling and fortified wine, 2015-25
      • Figure 3: UK total volume sales for still, sparkling and fortified wine, 2015-25
    • National lockdown accelerates the shift towards at-home drinking
    • Rosé outperforms in booming still wine retail segment
    • 2020 brings diverse effects on wine prices
    • Companies and brands
    • Mixed fortunes for leading brands in still wine retail
      • Figure 4: Leading brands’ value sales in the UK retail still wine market, 2018/19-2019/20
    • Freixenet takes the lead in sparkling wine
    • Better-for-you NPD continues in wine
    • Launches with ethical proposition remain rare
    • COVID-19 sees brands look to social media to drive engagement
    • The consumer
    • 2020 sees a small fall in wine usage
      • Figure 5: Usage frequency for wine, July 2020
    • Two in three buy wine, red wine gains in 2020
      • Figure 6: Purchase of wines, by type, July 2019 and July 2020
    • Growth in online, but in-store purchasing continues to dominate
      • Figure 7: Channels used for buying wine, August 2018 and July 2020
      • Figure 8: Locations for buying wine, July 2020
    • Just one in four buyers would spend over £10 on wine; gifting attracts higher spend
      • Figure 9: Spending on wine by occasion, July 2020
    • Price is important, but wines must deliver on taste
      • Figure 10: Buying factors for wine, July 2020
    • Ethical propositions must be tangible
      • Figure 11: Wine drinking and buying behaviours, July 2020
    • Small wine bottles can tap numerous current needs
      • Figure 12: Attitudes towards wine, July 2020
  3. Issues and Insights

    • COVID-19 dials up the focus on health and price
    • Ethical propositions must be tangible
    • COVID-19 creates barriers and opportunities for new brands
  4. The Market – Key Takeaways

    • 2020 halts inflation-led value growth
    • Further inflation and weak volume sales ahead
    • National lockdown accelerates the shift towards at-home drinking
    • Rosé outperforms in booming still wine retail segment
    • 2020 brings diverse effects on wine prices
  5. Market Size and Forecast

    • Economic impact of pandemic to damage both on- and off-trade sales
      • Figure 13: Short, medium and long-term impact of COVID-19 on still, sparkling and fortified wine, 27 October 2020
    • 2020 halts inflation-led value growth
      • Figure 14: Market size for still, sparkling and fortified wine, 2015-25 (prepared on 18 November 2020)
    • Inflation and weak volume sales performance ahead
    • Post-Brexit trade agreements will be a key factor in price trends
    • Volume sales to fall in 2021, then make some recovery over 2022-25
      • Figure 15: UK total value sales for still, sparkling and fortified wine, 2015-25
      • Figure 16: UK total volume sales for still, sparkling and fortified wine, 2015-25
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 27 October 2020)
    • Learnings from the last recession
      • Figure 18: Growth in value and volume sales of still, sparkling and fortified wine, 2009-13
  6. Market Segmentation

    • Rosé outperforms in booming still wine retail segment
      • Figure 19: Off-trade value and volume sales of still wine, by type, 2018-20
    • British fortified wine hit by Buckfast’s decline
      • Figure 20: Off-trade value and volume sales of fortified wine, by type, 2018-20
  7. Channels to Market

    • National lockdown accelerates the shift towards at-home drinking
      • Figure 21: UK value and volume sales of wine in the on- and off-trade, by type, 2018-20
    • Inflation in both the off- and on-trade in 2020
    • Mixed performance for different wine types in the off-trade
  8. Market Drivers

    • Multiple factors affect wine prices
    • Pound’s weakness and extreme weather drive inflation over 2016-19
    • Exports of English wines rise in 2019
    • COVID-19 restrictions in various countries have divergent effects on prices
    • Brexit to cause complications for the wine industry
    • Alcohol duties on wine frozen in 2020
    • COVID-19 lockdowns put pressure on the wine sector
    • European wine producers make efforts to shift the oversupply
    • English and Welsh wine producers hit hard by closure of the hospitality sector
    • Government intervention affects both the on- and off-trade
    • New restrictions put on-trade’s recovery at risk
    • Consultation on alcohol calorie labelling announced
  9. Companies and Brands – Key Takeaways

    • Mixed fortunes for leading brands in still wine retail
    • Better-for-you NPD continues in wine
    • Launches with ethical proposition remain rare
    • COVID-19 sees brands look to social media to drive engagement
  10. Market Share

    • Mixed fortunes for leading brands as still wine leaps ahead
      • Figure 22: Leading brands’ sales and shares in the UK retail still wine market, 2017/18-2019/20
    • Barefoot and Yellow Tail NPD taps current trends
    • Concha y Toro’s backing fuels rapid growth for Trivento
      • Figure 23: Leading brand owners’ sales and shares in the UK retail still wine market, 2017/18-2019/20
    • Freixenet surges forward in sparkling wine
      • Figure 24: Leading brands’ sales and share in the UK retail sparkling wine market, 2017/18-2019/20
      • Figure 25: Leading brand owners’ sales and share in the UK retail sparkling wine market, 2017/18-2019/20
    • Taittinger grows in struggling market
      • Figure 26: Leading brands’ sales and share in the UK retail Champagne market, 2017/18-2019/20
      • Figure 27: Leading brand owners’ sales and share in the UK retail Champagne market, 2017/18-2019/20
    • Leading fortified wine brand Buckfast struggles
      • Figure 28: Leading brands’ sales and share in the UK retail fortified wine market, 2017/18-2019/20
      • Figure 29: Leading brand owners’ sales and share in the UK retail fortified wine market, 2017/18-2019/20
  11. Launch Activity and Innovation

    • Further activity in low- and non-alcoholic wines
    • Brands flag up their wines’ lower calorie status
    • Belle & Co launches non-alcoholic wine/green tea blend
    • Alcohol-free mulled wine is a rare example of a seasonal L/N/R alcohol launch
      • Figure 30: Examples of alcohol-free wine launches, 2019-20
    • Canned wine launches target picnic occasions
      • Figure 31: Examples of canned wine launches positioned as ideal for picnic occasions, 2020
    • Origin Wines claims UK first with vegan and Fairtrade canned wine
    • Blossom Hill releases canned version of its Gin Fizz mixed drinks
    • Waitrose claims UK first with launch of wine in tube format
      • Figure 32: Waitrose launches wines in tube format, 2020
    • New mixed wine drinks look to compete with gin and RTDs
    • Leading brands launch wines with botanicals
      • Figure 33: Echo Falls Botanical Fusions Melon & Mint, 2020
    • Wine seltzers are pitched as healthier alternatives to RTDs
      • Figure 34: Examples of wine seltzers, 2020
    • Pre-mixed versions look to find new usage occasions
      • Figure 35: Examples of pre-mixed alcoholic drinks with fortified wine, 2020
    • Still and sparkling wine brands cross over
      • Figure 36: Examples of wine brands diversifying their offering, 2020
    • Retailers extend their own-label offering
      • Figure 37: Harvey Nichols India Cream Jerez Xérès Sherry, 2020
    • New English rosé highlights its sustainable packaging
      • Figure 38: Folc English rosé takes craft positioning and makes sustainable claim, 2020
    • Ethical claims are rare in the wine category
    • Companies look to reduce their carbon footprint
      • Figure 39: Viña Sol Original 2019 White Wine, 2020
    • Exploring alternative packaging materials
    • Wine brands support conservation charities
      • Figure 40: Examples of wine launches pledging support for charity on-pack, 2020
  12. Advertising and Marketing Activity

    • Retailers lead on advertising in 2019
      • Figure 41: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, 2019-20
    • M&S teams up with Fred Sirieux to promote its Classics range
      • Figure 42: M&S in-store display promoting their partnership with Fred Sirieux, 2020
    • Trivento continues partnership with Discovery Channel
    • Brands use social media to engage consumers during lockdown
    • Yellow Tail focuses on connections with family and friends…
      • Figure 43: Facebook post by Yellow Tail as part of its ‘#RaiseAGlass’ campaign, 2020
    • …and celebrates everyday triumphs
      • Figure 44: Facebook post by Yellow Tail as part of its ‘#EverydayMoments’ campaign, 2020
    • Moët & Chandon portrayed as making at-home occasions more special
    • Hardys’ virtual book club recommends ‘uplifting reads’
    • Barefoot promotes exotic cocktails as sparking the holiday feeling…
      • Figure 45: Facebook post by Barefoot offering cocktail recipe, 2020
    • …and also focuses on small victories
      • Figure 46: Facebook post by Barefoot as part of the ‘Virtual Cheers’ campaign, 2020
    • I Heart celebrates ‘unsung heroes’
    • Nielsen Ad Intel coverage
  13. The Consumer – Key Takeaways

    • 2020 sees a small fall in wine usage
    • In-store buying dominates, online grows
    • Taste and price lead in wine choice, just 26% would pay more than £10
    • Ethical propositions must be tangible
    • Small wine bottles can tap numerous current needs
  14. Impact of COVID-19 on Consumer Behaviour

    • A fifth of users have drunk less wine since the COVID-19 outbreak…
    • …but nearly a quarter have drunk more
      • Figure 47: Changes in wine drinking habits since the COVID-19 outbreak, July 2020
    • Concerns linger about going to restaurants/bars
    • Pubs and restaurants go from closure to restricted operations
    • Two in five people feel uncomfortable visiting bars/restaurants
    • Continued restrictions and squeezed incomes pose further challenges
      • Figure 48: Feeling comfortable about going to restaurants/bars indoors, 25 June-1 October 2020
    • Two in five people look to limit time in store
    • Tried-and-tested wines hold an advantage
      • Figure 49: Limiting time in-store and shopping more online and from local businesses since the start of the COVID-19 outbreaks, 14 May-1 October 2020
    • Uplift in online shopping
    • One in six resolve to cut back on alcohol post-pandemic
      • Figure 50: Changes to frequency of drinking alcohol since the start of the COVID-19/coronavirus outbreak, by gender and age, May 2020
      • Figure 51: Resolution to cut back on alcohol intake post-COVID-19, by gender and age, July 2020
    • Environment becomes a higher priority
  15. Usage of Wine

    • Usage of wine dips
      • Figure 52: Usage of wine, July 2020
    • Recession poses a problem for wine
      • Figure 53: Usage frequency for wine, July 2020
    • Over-55s overtake under-35s as the most frequent wine drinkers
  16. Purchase of Wines

    • Seven in 10 adults buy wine
      • Figure 54: Purchase of wines, by type, July 2019 and July 2020
    • Purchase of red wines rises in 2020
    • Champagne loses out
    • Ageing UK population will benefit some wine varieties while hindering others
    • 45% of people buy only one or two types of wine
      • Figure 55: Repertoire of wine types purchased, July 2020
  17. Locations for Buying Wine

    • Growth in online, but in-store purchasing continues to dominate
      • Figure 56: Channels used for buying wine, August 2018 and July 2020
    • Supermarkets lead on both in-store and online buying
    • Focus on expertise should help to boost online specialists
    • Three quarters of buyers purchase wine in-store from supermarkets
      • Figure 57: Locations for buying wine, August 2018 and July 2020
    • In-store wine events can be promoted as a chance to sample international flavours without travelling
    • Three quarters of wine buyers source from one or two locations
      • Figure 58: Repertoire of locations where wine has been bought, July 2020
  18. Spending on Wine by Occasion

    • Consumers spend more on wine as a gift than for personal use
      • Figure 59: Spending on wine by occasion, July 2020
    • Promotions to assume even greater importance during downturn
    • Environmental claims can help to persuade people to pay more for wine
  19. Buying Factors for Wine

    • Price is important, but wines must deliver on taste
      • Figure 60: Buying factors for wine, July 2020
    • Opportunity for newcomers to succeed through promising a unique flavour
    • Only a minority are influenced by ethical claims
    • Need for companies to explain the importance of buying ethical wines
  20. Behaviours Relating to Wine

    • Three quarters of drinkers stick to the same varieties
      • Figure 61: Wine drinking and buying behaviours, July 2020
    • Comparisons with established favourites can help to boost lesser-known varieties
    • Peer recommendations exert a powerful influence
    • Eco-friendly options attract interest
    • Need for companies to prove their commitment to sustainable packaging
      • Figure 62: International examples of wine launches with sustainable packaging claims, 2019-20
    • Producers of bag-in-box wines should make more play of the packaging savings
    • Sustainable claims are rare in wine
      • Figure 63: International examples of wine launches with on-pack details of companies’ environmental policies, 2020
  21. Attitudes towards Wine

    • Champagne is widely seen as enhancing social occasions
      • Figure 64: Attitudes towards wine, July 2020
    • Portray smaller Champagne bottles as ideal for small-scale at-home celebrations
    • Highlight portion control aspects of small wine bottles
    • Smaller bottles can help to encourage experimentation
    • Focus on avoiding wastage to strengthen smaller bottles’ value associations
    • Promote small bottles of premium wines using a ‘less but better’ message
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix – Purchase of Wines

      • Figure 65: Repertoire of wine types purchased, July 2019

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