2021
9
UK Still, Sparkling and Fortified Wine Market Report 2021
2022-01-07T03:05:41+00:00
OX1050519
2195
146641
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Report
en_GB
“Consumers’ increased environmental consciousness as a result of the pandemic makes it imperative for companies to be proactive on sustainability. Wine made with surplus ingredients such as ‘wonky’ grapes is…

UK Still, Sparkling and Fortified Wine Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Still, Sparkling and Fortified Wine market report identifies consumer attitudes towards the still wine market, sparkling wine market, on-trade sales of wine, changes in wine channels, and top buying factors for wine in the UK. This market report covers the wine market size, fortified wine market trends, market segmentation and industry trends for the Still, Sparkling and Fortified Wine market in the UK.

Current Market Landscape

The strong growth in retail wine sales following the COVID-19 outbreak boosted overall category sales over 2020-21, despite the steep decline in the on-trade sector. Both markets were propelled by lockdowns and restrictions to combat the COVID-19 outbreak and consumer wariness towards busy spaces, wine’s popularity as an at-home drink seeing it benefit from the shift to at-home occasions.

  • Wine made with surplus ingredients such as ‘wonky’ grapes appeals to 76% of category drinkers/buyers.
  • Value sales are estimated to slip back by 5% to £1.63 billion during 2021.
  • Sustainable claims featured on just 6% of category launches in 2020.

While environmental factors apparently have only limited effect on wine buying, this appears to be due to lack of availability, as certain tangible sustainable initiatives attract strong interest. Consumers’ heightened environmental focus prompted by the COVID-19 pandemic adds further incentive for brands to be proactive on sustainability. The fact that ethical claims are rare in wine suggests a missed opportunity.

Future Market Trends in Still, Sparkling and Fortified Wine 

Consumers’ increased health-consciousness as a result of the pandemic will accelerate the alcohol moderation trend and hamper volume growth in wine. However, this also provides opportunities for further NPD in low/non-alcoholic versions, particularly in products with a non-sweet flavour profile.

Bag-in-box wines have low usage currently, but have good opportunities to succeed in the current climate. This format can appeal on several fronts, including helping to prevent wastage of wine, facilitate alcohol moderation and reduce packaging waste.

Read on to discover more details or take a look at all of our UK Drinks market research.

Quickly understand

  • The impact of COVID-19 on retail and on-trade sales of still, sparkling and fortified wine.
  • Changes in the channels from which people buy wine.
  • Top buying factors for wine, and how these vary depending on whether people are buying for themselves or as a gift.
  • Consumer attitudes relating to wine and the environment.
  • Current trends in launch activity in the wine category and opportunities for further innovation.

Covered in this report

Wines: Still wines (red wine, white wine, rosé wine), semi-sparkling wine, sparkling wines (champagne, cava, English sparkling wine, prosecco), fortified wine (brandy, port, sherry, Madeira, vermouth, mantilla, ginger wine).

Brands: Accolade Wines (Hardys), E&J Gallo (Gallo, Barefoot), Casella Family Brands (Yellow Tail), Australian Vintage (McGuigan), Concha y Toro (Casillero Del Diablo, Isla Negra), Treasury Wine Estates (Blossom Hill, 19 Crimes, Wolf Blass, Lindeman’s), Pernod Ricard (Campo Viejo, Brancott Estate), Villa Maria, Oyster Bay, Freixenet Copestick (I Heart), Cantine Ruunite & CIV (Plaza Centro), Fratelli Martini Secondo Luigi (Canti), Valdo Spumanti, Bacardi Martini, Borgo Molino Vigne, Contarini Vini E Spumanti (Scalini), Moët Hennessy Diageo (Moët & Chandon), Lanson International, Bollinger, Taittinger, Charles Heidsieck, Laurent Perrier, Nicolas Feuillatte.

Expert analysis from a specialist in the field

This report, written by Alice Baker, a leading analyst in the Drinks sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumers’ increased environmental consciousness as a result of the pandemic makes it imperative for companies to be proactive on sustainability. Wine made with surplus ingredients such as ‘wonky’ grapes is a promising area for brands to explore. Bag-in-box wines also have a chance to shine in the current climate, being able to appeal both on environmental and alcohol moderation grounds.

Alice Baker
Senior Research 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
  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, 2021
    • The market
    • Strong retail sales fuel market growth in 2020 with modest volume growth in 2021
    • Further inflation and declining volume sales predicted for 2022-26
      • Figure 2: Market forecast for total value sales of still, sparkling and fortified wine, 2016-26
    • Rosé sees the strongest growth in still wines, while fortified wines expand their audience
      • Figure 3: Retail value sales of still wine, by sub-segment, 2019-21
    • Various factors drive up wine prices in 2021
    • Pandemic accelerates the alcohol moderation trend
    • Companies and brands
    • Multiple brands gain as still wine retail sales growth continues
      • Figure 4: Leading brands’ sales in the UK retail still wine market, by value, 2019/20 and 2020/21
    • Champagne revival boosts brands and own-label
    • Further launch activity in low/no-alcohol, bag-in-box and English wines
    • Ethical claims are underexplored in wine
      • Figure 5: Share of UK wine launches with selected ethical claims, 2017-21
    • Source: Mintel GNPD
    • Laithwaites leads on advertising in 2020/21 as overall adspend falls
    • Social connections and expertise are key themes of wine advertising in 2020/21
    • The consumer
    • Seven in 10 adults drink wine, with a third doing so weekly
      • Figure 6: Usage frequency for wine, 2021
    • Still white and red wines remain the most widely bought, Champagne buying recovers
      • Figure 7: Purchase of wines, by type, 2019-21
    • Some recovery in buying through on-premise channels, growth in online continues
      • Figure 8: Channels used for buying wine, 2018-21
    • Promotions are more compelling than a low basic price, brand loyalty is higher when people are buying for themselves
      • Figure 9: Buying factors for wine, by occasion, 2021
    • Need for further action on sustainability in the wine category
      • Figure 10: Behaviours relating to wine, 2021
    • Opportunities for bag-in-box and low/non-alcoholic wines to succeed
      • Figure 11: Attitudes towards wine, 2021
  3. Issues and Insights

    • Focus on sustainability to capitalise on consumers’ increased environmental consciousness
    • Find ways to navigate the alcohol moderation trend
    • Bag-in-box wines are poised to fly
  4. Market Size and Performance

    • Wine sales see growth during the pandemic despite on-trade losses
      • Figure 12: Short, medium and long-term impact of COVID-19 on still, sparkling and fortified wine, 2021
    • Inflation masks volatile volume sales performance over 2016-21
    • Pandemic boosts value and volume sales in 2020 despite on-trade closures
    • Further modest volume sales growth with increased inflation in 2021
      • Figure 13: Market size for still, sparkling and fortified wine, 2016-21
  5. Market Forecast

    • Further inflation and slight volume growth predicted for 2022-26
    • Income squeeze to erode category volume sales in 2022, but some on-trade recovery
    • Improved sales expected for 2023, but tempered by the alcohol moderation trend
    • Some segments to lose out from the ageing UK population
    • Sharp price rises expected in 2022, then slower inflation over 2023-26
      • Figure 14: Market forecast for total value sales of still, sparkling and fortified wine, 2016-26
      • Figure 15: Market forecast for total volume sales of still, sparkling and fortified wine, 2016-26
    • Market drivers and assumptions
      • Figure 16: Key drivers affecting Mintel’s market forecast, 2015-26
    • Forecast methodology
  6. Market Segmentation

    • Still wine’s strong retail sales performance starts to fall away in 2021
      • Figure 17: Retail value and volume sales of still wine, by sub-segment, 2019-21
    • Fruit and mixed wines hit by Californian supply chain issues
    • Organic wine performs strongly in 2020
    • Fortified wine expands its audience over 2020-21
      • Figure 18: Retail value and volume sales of fortified wine, by sub-segment, 2019-21
  7. Channels to Market

    • Retail gains at the expense of the on-trade over 2020-21
      • Figure 19: UK value and volume sales of wine in the on- and off-trade, by type, 2019-21
    • On-trade regains ground in second half of 2021
    • Inflation runs faster in the on- than off-trade in 2021
  8. Market Drivers

    • Income squeeze in 2021-22 to hinder category sales
    • Various factors drive up wine prices in 2021
    • Poor weather impacts wine harvests across Europe
    • New Zealand loses out but Australia gains from unseasonal weather
    • California experiences drought and gridlock at ports
    • Poor summer weather and shortage of workers undermine English wine production
    • HGV driver shortage reduces on-trade wine supplies
    • Rising packaging costs trickle through to retail prices
    • Changes to alcohol duties to have divergent effects on the category
    • Alcohol moderation trend poses a threat to the category
    • Scope for further NPD in non-alcoholic and lower-ABV wines
    • Premium wines can benefit from a ‘drink less but better’ positioning
    • Consumers’ heightened health focus poses a challenge and an opportunity
    • Consumers’ increased eco-consciousness makes it imperative for companies to prove their environmental credentials
    • Spotlight on sustainability could help bag-in-box and canned wines to gain traction
    • Pandemic-induced boost to patriotism could aid sales of British wines
    • Ageing UK population to affect some wine segments more than others
  9. Market Share

    • Multiple brands gain as still wine retail sales growth continues
      • Figure 20: Leading brands’ sales and shares in the UK retail still wine market, by value and volume, 2018/19-2020/21
    • Premiumisation trend benefits Yellow Tail, Trivento, Casillero del Diablo and 19 Crimes
    • Echo Falls and Gallo lose out from supply chain disruptions in California
    • Marketing activity allows Freixenet to race ahead as sparkling wine sales growth accelerates
      • Figure 21: Leading brands’ sales and shares in the UK retail sparkling wine market, by value and volume, 2018/19-2020/21
    • Brands and own-label benefit from Champagne’s revival in 2021
      • Figure 22: Leading brands’ sales and shares in the UK retail Champagne market, by value and volume, 2018/19-2020/21
    • Buckfast fails to regain its 2019 levels amid fortified wine’s resurgence
      • Figure 23: Leading brands’ sales and shares in the UK retail fortified wine market, by value and volume, 2018/19-2020/21
    • Youth appeal boosts MD 20/20
  10. Launch Activity and Innovation

    • Further launch activity in low/non-alcoholic wines comes as timely
    • Non-alcoholic sparkling wine launches emphasise taste and quality as well as health
    • Ara Wines claims UK first with alcohol-free Marlborough Sauvignon Blanc
    • Canned wine brand Hun unveils non-alcoholic variant
    • Competition heats up in bag-in-box wines
      • Figure 24: Examples of bag-in-box wine launches from leading brands, 2020-21
    • Canned wines put the focus on provenance and expertise
      • Figure 25: Examples of canned wine launches, 2020-21
    • Ethical and environmental claims are rare in wine
      • Figure 26: Share of UK wine launches with selected ethical claims, 2017-21
    • When in Rome introduces carbon footprint labelling for its boxed wines
      • Figure 27: Example of When In Rome bag-in-box wines with carbon footprint labelling, 2021
    • Niche brands support nature conservation
      • Figure 28: Examples of wine launches supporting nature conservation, 2021
    • Majestic launches cork-recycling scheme
    • Waitrose concludes its wine refill scheme
    • The English Vine claims UK first with paper bottle
    • Organic claims gain share of launches in 2020
      • Figure 29: Share of UK wine launches with organic claims, 2017-21
    • Source: Mintel GNPD
    • Branded and own-label launches look to explain the benefits of organic
    • Running Duck releases organic and Fairtrade wine
      • Figure 30: Examples of organic wine launches, 2021
    • Supermarkets turn the spotlight on lesser-known wine varieties
    • Further activity in English wines
    • Some brands emphasise their craft attributes…
      • Figure 31: Examples of English wine launches with an emphasis on craft attributes, 2021
    • …while others look to offer English wines at a more accessible price point
    • Brands and retailers continue to experiment with flavours
    • 19 Crimes looks to appeal to young adults with coffee-blended red wine
    • Aldi’s fruit-flavoured wine offers a challenge to brands
      • Figure 32: Examples of flavoured wine launches, 2021
    • Celebrity launches continue in 2021
    • Various brands partner with music stars
      • Figure 33: Example of wine launch with celebrity branding, 2021
    • James Martin offers food pairing suggestions on his signature wines
    • Liquid Diamond wines use on-pack emojis to communicate their flavour notes
  11. Advertising and Marketing Activity

    • Advertising spend falls in 2020
      • Figure 34: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, by advertiser, 2019-21 (sorted by 2020)
    • Laithwaites invites people to ‘get that wine cellar feeling’
    • Yellow Tail focuses on enjoying life’s simple pleasures
    • Concha y Toro increases advertising spend in 2020
    • Cono Sur highlights its environmentally friendly credentials
    • Casillero del Diablo emphasises quality and plays up its ‘devilish’ associations…
    • …and takes an innovative approach to summer heat
    • Trivento focuses on expertise and attention to detail
    • 19 Crimes invites people to find a hidden cork and get tattooed
    • Freixenet looks forward to reunions in Christmas 2020 advert
    • Dom Pérignon and Lady Gaga join forces on creativity-focused campaign
    • Taylor’s promotes its versatility in new seasonal campaign
    • Majestic emphasises staff expertise in first ever Christmas TV advert
    • Nielsen Ad Intel coverage
  12. Usage of Wine

    • Seven in 10 adults drink wine
      • Figure 35: Usage of wine, 2021
    • A third of adults drink wine weekly or more often
      • Figure 36: Usage frequency for wine, 2021
  13. Purchase of Wines

    • Still white and red wines are the most widely bought types
      • Figure 37: Purchase of wines, by type, 2019-21
    • Ageing UK population will affect different wine segments differently
    • Still red and white wines’ age bias should protect them
      • Figure 38: Purchase of still white and still red wine, by age, 2021
    • Still rosé will lose out from the ageing population
    • Revival in Champagne buying
    • More people buy three or more types of wine than in 2020
      • Figure 39: Repertoire of wine types purchased, 2020 and 2021
    • Standard 750ml bottles still dominate for wine
    • Promote smaller formats as helping with portion control and alcohol moderation
    • Highlight bag-in-box formats’ environmental credentials
      • Figure 40: Purchase of wines, by format, 2021
    • Standard-strength wine leads significantly
      • Figure 41: Purchase of wines, by strength, 2021
  14. Locations for Buying Wine

    • Online buying of wine remains above pre-pandemic levels
      • Figure 42: Channels used for buying wine, 2018-21
    • Some recovery in on-premise buying
    • Supermarkets lead on both in-store and online sales
    • Localism trend boosts sales through specialist wine stores
      • Figure 43: Locations for buying wine, 2018-21
  15. Buying Factors for Wine by Occasion

    • Brand loyalty is higher when people are buying for themselves
      • Figure 44: Buying factors for wine, by occasion, 2021
    • Good opportunities for brands to explore healthier variants and lesser-known varieties
    • Unfamiliar brands can appeal for gifting occasions
    • Promotions are more compelling than a low basic price
    • Attractive packaging is the leading choice factor when gift buying
    • Innovate with packaging that is both visually pleasing and eco-friendly
      • Figure 45: International examples of wines with sustainable yet attractive packaging, 2021
    • Refill schemes are an underexplored concept in wine
    • Present packaging reductions as enhancing a product’s gifting potential
  16. Behaviours Relating to Wine

    • Need for further environment-led innovation in the wine category
    • Wine made with surplus grapes attracts strong consumer interest
      • Figure 46: Behaviours relating to wine, 2021
    • Other alcoholic drinks categories offer cues on anti-food waste products
      • : Figure 47: Examples of alcoholic drinks made from surplus ingredients, 2019-20
    • Highlight environmental credentials to boost sales of British wine
    • Need to reassure consumers on imported wines’ environmental credentials
    • Satisfy consumers’ thirst for knowledge on wine
    • Allow people to access further information at the point of sale
  17. Attitudes towards Wine

    • Bag-in-box wines have a chance to shine
      • Figure 48: Attitudes towards wine, 2021
    • Quality awards and references to provenance can help to boost bag-in-box wines’ premium image
      • Figure 49: Example of bag-in-box wine with on-pack references to provenance, 2021
    • Call out bag-in-box wines’ environmental strengths
      • Figure 50: International examples of bag-in-box wines with an environmental focus, 2021
    • Need to boost taste perceptions around low/non-alcoholic wine
    • Call out less sweet flavour notes to widen appeal of low/non-alcoholic wines
      • Figure 51: Example of non-alcoholic wine launch emphasising non-sweet flavour notes, 2021
    • Low/no-alcohol variants with quality differentiators should be well placed to succeed
    • Wines with slightly lower ABV warrant further exploration
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  19. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 52: Market forecast and prediction intervals for total value sales of still, sparkling and fortified wine, 2016-26
      • Figure 53: Market forecast and prediction intervals for total volume sales of still, sparkling and fortified wine, 2016-26
    • Market drivers and assumptions
      • Figure 54: Key drivers affecting Mintel’s market forecast, 2020-26
    • Forecast methodology
  20. Appendix – Market Share

      • Figure 55: Leading brand owners’ sales and shares in the UK retail still wine market, by value and volume, 2018/19-2020/21
      • Figure 56: Leading brand owners’ sales and shares in the UK retail sparkling wine market, by value and volume, 2018/19-2020/21
      • Figure 57: Leading brand owners’ sales and shares in the UK retail Champagne market, by value and volume, 2018/19-2020/21
      • Figure 58: Leading brand owners’ sales and shares in the UK retail fortified wine market, by value and volume, 2018/19-2020/21

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