2022
9
UK Still, Sparkling and Fortified Wine Market Report 2022
2022-11-02T03:05:52+00:00
OX1104067
2195
157108
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Report
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“The cost-of-living crisis has driven down sales of wine in 2022, reflecting its discretionary nature and high price. ‘Switch and Save’ suggestions should help retailers to appeal as a good…

UK Still, Sparkling and Fortified Wine Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Still, Sparkling and Fortified Wine Market Report identifies consumers’ priorities when buying wine, leading usage occasions for wine and the impact of the cost of living crisis on the UK wine market. This report covers the UK wine market share, market forecast, market segmentation and UK wine market trends.

 

Current Landscape of the Still Wine Market, Fortified Wine Market and Sparkling Wine Market

The rising cost of living has prompted consumers to cut back on wine buying in both the on- and off-trade channels in the UK wine market. Reduced household incomes will also continue to favour the lower-priced off-trade and this, coupled with trading down within the off-trade, will drive down average prices and therefore, value sales in 2022 and 2023.

 

UK Wine Market Share and Key Industry Trends

To help mitigate the financial squeeze, the UK wine market should focus on small-scale at-home occasions and celebratory occasions to drive purchases. Marketing initiatives such as ‘Switch and Save’ will help supermarkets to appeal as a good value place to buy wine and to persuade consumers that they can still enjoy wine despite their reduced finances.

  • UK wine market size: Estimated at £14 billion in 2022, the total still, sparkling and fortified wine market grew by 7% over 2017-22.
  • 70% of adults drink still, sparking or fortified wine occasionally.
  • 49% of consumers buy wine to drink with a meal at home for a non-special occasion.
  • 54% of wine drinks have drunk less wine in pubs/bars/restaurants in the last six months

 

Future UK Wine Market Trends

Volume sales for the UK wine market should pick up in 2025 due to improved household incomes. However, this will be tempered by the alcohol moderation trend.

Given the importance of meal accompaniment occasions in supporting wine purchases, brands and retailers in the UK wine market should proactively drive the visibility of their food pairing suggestions in order to drive purchases. Drink pairing prompts on food menus also continue to have strong potential to support brands’ sales in the on-trade in pubs and restaurants.

To discover more about the UK Still, Sparkling and Fortified Wine Market Report 2022, read our UK Alcoholic Drinks Market Report, or take a look at our Alcoholic Drink Market Research Reports.

 

Quickly Understand

  • The impact of the cost-of-living crisis on value and volume sales of the UK wine market.
  • Shifts in channels in the aftermath of the COVID-19 pandemic.
  • Shoppers’ priorities when buying wine, with familiar varieties and promotions leading.
  • Leading usage occasions for wine, including the importance of meal occasions.
  • Trends in launch activity in the UK wine market and opportunities for further innovation.
  • Explores wine market size and the market various segments: still wine market, fortified wine market, sparkling wine market.

 

Covered in this Report

Products: Still wine, sparkling wine, fortified wine.
Brands:  Accolade Wines (Hardys), E&J Gallo (Barefoot), Caselle Family Brands (Yellow Tail), Concha y Toro (Casillero de Diablo, Isla Negra, Trivento), Australian Vintage (McGuigan), Pernod Ricard (Campo Viejo), Treasury Wine Estates (Blossom Hill, 19 Crimes),

 

Expert Analysis from a Specialist in the UK Wine Market

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

The cost-of-living crisis has driven down sales in the UK wine market in 2022, reflecting its discretionary nature and high price. ‘Switch and Save’ suggestions should help retailers to appeal as a good value place to buy wine. Marketing messages portraying wine as enhancing low-key at-home occasions will help brands to drive purchase.”

Alice Baker
Senior Food & Drink Research Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for still, sparkling and fortified wine
      • Figure 1: Category outlook, 2022-27
    • The market
    • Value sales growth outpaces volume sales over 2017-22
      • Figure 2: Market forecast for value sales of still, sparkling and fortified wine, 2017-27
    • Weak volume sales expected for 2022-27, rising prices to prop up value
    • On-trade regains ground from retail over 2021-22, but fails to attain pre-pandemic levels
      • Figure 3: UK value sales of wine in the on- and off-trade, 2020-22
    • Shallower retail sales decline for white and rosé wines than for red in 2022
      • Figure 4: Retail value sales of still wine, by sub-segment, 2020-22
    • Inflation in wine and spirits lags behind overall inflation
      • Figure 5: RPI inflation for off-trade wines and spirits and all items, 2019-22
    • Companies and brands
    • Hardys and Freixenet buck the negative trends in their respective segments
      • Figure 6: Leading brands’ sales in the UK retail still wine market, by value, 2019/20-2021/22
    • Further activity in L/N/R alcohol wines, brands diversify their packaging formats
    • Wine advertising in 2021 focuses on nights in, but shifts to travel in 2022
    • The consumer
    • Overall wine usage is unchanged from 2021, but drinking frequency is down
      • Figure 7: Usage frequency for wine, 2021 and 2022
    • No change in overall wine buying in 2022
      • Figure 8: Purchase of wines, by type, 2021 and 2022
    • Ageing UK population will have divergent effects on wine category
    • Grape variety trumps brand as an influence on wine buying
      • Figure 9: Priorities when buying wine, 2022
    • Drinking with meals is a leading usage occasion both in and out of home
      • Figure 10: Occasions for drinking wine, 2022
    • ‘Switch and save’ suggestions appeal as consumers cut back on wine buying
    • Reviews and recommendations are particularly valued by under-45s
      • Figure 11: Behaviours relating to wine, 2022
    • Focus both on at-home and celebratory occasions to support category sales during the income squeeze
      • Figure 12: Attitudes towards wine, 2022
  3. Issues and Insights

    • ‘Switch and Save’ suggestions can buoy up wine sales as shoppers tighten their belts
    • Focus on low-key at-home occasions to drive purchase amid cost-of-living crisis
    • Put reviews and recommendations in shoppers’ paths to overcome confusion around the category
  4. Market Size and Performance

    • Value sales growth outpaces volume sales over 2017-22
    • Shifts in channels cause value sales volatility over 2020-21
    • Declining volume sales with near-flat value sales growth in 2022
      • Figure 13: Total value and volume sales of still, sparkling and fortified wine, 2017-22
  5. Market Forecast

    • Inflation to drive value sales growth despite falling or flat volumes
      • Figure 14: Category outlook, 2022-27
    • Further inflation with weak volume sales expected for 2022-27
    • Volume sales to decline in 2023 as inflationary pressures continue
    • Volume sales to be flat in 2024
    • On-trade will struggle to regain its pre-pandemic levels
    • Ageing UK population will benefit some wine types while undermining others
      • Figure 15: Market forecast for value sales of still, sparkling and fortified wine, 2017-27
      • Figure 16: Market forecast for volume sales of still, sparkling and fortified wine, 2017-27
    • Learnings from the last income squeeze
      • Figure 17: Value and volume sales growth in the still, sparkling and fortified wine category, 2008-14
    • Forecast methodology
  6. Retail Market Segmentation

    • Retail sales of all types of still wine fall in 2022 due to shopper cutbacks and on-trade recovery
      • Figure 18: Retail value and volume sales of still wine, by sub-segment, 2020-22
    • Fortified wine’s retail sales bounce runs out of steam in 2022
      • Figure 19: Retail value and volume sales of fortified wines, by sub-segment, 2020-22
  7. Channels to Market

    • On-trade regains ground from retail over 2021-22, but fails to attain pre-pandemic levels
    • On-trade sales recover in H2 2021, but hampered by lingering concerns over COVID-19
    • Pressure on consumer finances hinders on-trade’s further recovery in 2022
      • Figure 20: UK value and volume sales of wine in the on- and off-trade, by type, 2020-22
    • Rising prices accelerate Champagne retail sales decline over 2021-22
    • Direct-to-consumer sales drive sales growth for British wines over 2019-21
  8. Market Drivers

    • Inflation is the key concern for consumers and brands
    • Inflation in wine and spirits lags behind overall inflation…
      • Figure 21: RPI inflation for off-trade wines and spirits and all items, 2019-22
    • …but price rises could be on the cards for 2023
    • Exchange rates are crucial for wine
    • Despite government support, energy prices are still a major concern
    • …and will weigh down the post-COVID recovery
    • Consumer spending power will be curbed
    • Cutbacks on out-of-home socialising will dampen value sales growth in the wine category
    • Unemployment is at a near-50 year low
    • Employment rates are pivotal for wine
      • Figure 22: Overall usage of wine, by employment status, 2022
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 23: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
    • Economic slowdown sees wine volume sales decline in 2022
      • Figure 24: Usage frequency for wine (nets), by how consumers describe their financial situation, 2022
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
      • Figure 25: Overall usage of wine, by annual household income, 2022
    • New pub openings in 2021 cannot offset closures over 2019-21
    • Concerns rise in the pub trade of further closures over winter 2022/23
    • Alcohol moderation trend falters, but is likely to gain momentum with the income squeeze
    • Ageing population will benefit red/white wine while hindering rosé
      • Figure 26: Purchase of selected types of wine, by age, 2022
  9. Regulatory and Legislative Changes

    • Volatility in government sees multiple changes to alcohol duty proposals
    • England and Northern Ireland come under pressure to impose minimum unit pricing
    • Wine benefits from minimum unit pricing in Scotland
  10. Market Share

    • Hardys bucks negative trend in retail still wine sales
      • Figure 27: Leading brands’ sales and shares in the UK retail still wine market, by value and volume, 2019/20-2021/22
    • Supply chain disruptions hit Blossom Hill and Echo Falls
    • Villa Maria loses out as New Zealand grape harvests fall
    • Increased distribution boosts La Vieille Ferme
    • Freixenet posts strong growth in declining retail sparkling wine market
      • Figure 28: Leading brands’ sales and shares in the UK retail sparkling wine market, by value and volume, 2019/20-2021/22
  11. Launch Activity and Innovation

    • Leading and niche brands launch non-alcoholic/alcohol-free wines
      • Figure 29: Examples of low/non-alcoholic/alcohol-free wine launches, 2022
    • Brands and retailers continue to explore different wine formats
    • Further activity in canned wines
      • Figure 30: Examples of canned wine launches, 2022
    • Brands and retailers expand their selections of bag-in-box wines
      • Figure 31: Examples of bag-in-box wine launches, 2022
    • Limited edition products can help to add value
      • Figure 32: Publicity shot for the Madame F/Crosstown Doughnut & Wine Box, 2022
    • Kinsbrook’s wine blend offers potential cues for drought-hit producers
    • Various brands launch wines to mark the Platinum Jubilee
      • Figure 33: Examples of sparkling wine/Champagne launches for the Platinum Jubilee, 2022
    • Celebrity launches continue
    • Wine brands take action on the environment
    • Isla Negra reduces the weight of its glass bottles
    • Accolade and Laithwaites explore recycled glass for bottles
      • Figure 34: Example of the Wise Wolf range of wines in recycled glass bottles, 2022
    • Leading and niche players explore alternatives to standard glass bottles
      • Figure 35: When in Rome’s wine in a paper bottle, 2022
    • Accolade goes carbon-neutral
      • Figure 36: Echo Falls wine flagging up its carbon-neutral status, 2022
    • Virgin Wines introduces charitable collection…
    • …and links up with Moonpig on ‘shop in a shop’
    • Spar launches vegan wine range
    • Waitrose revives its at-home wine tasting service
  12. Advertising and Marketing Activity

    • Advertising spend rises in 2021
      • Figure 37: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, 2019-22
    • Laithwaites remains the leading advertiser in 2021
    • Concha y Toro takes the lead on advertising in January-August 2022
    • Yellow Tail focuses on meal pairings
    • Various brands focus on the ‘Night in’ occasion over 2021-22…
      • Figure 38: Instagram post from I Heart Wine’s ‘Movie Nights’ campaign, 2021
    • …but focus shifts to travel during 2022
    • Brands and retailers look to educate consumers about wine
    • Moët Hennessey links up with Selfridges on pop-up bar and shop
    • Berry Bros & Rudd launches fine wine podcast
    • 19 Crimes offers guidance to shoppers on in-store screens at Asda
      • Figure 39: 19 Crimes’ ‘Infamous Origins’ campaign display in-store at Asda, with screenshots of on-shelf display screens, 2022
    • Penfolds offers vintage wine sampling opportunities in space-themed pop-up
    • Other selected campaigns
    • Hardys emphasises its consistent high quality through the ages
    • Dark Horse celebrates individuality and encourages outdoor adventures
    • Martini focuses on social connections and shared memories
    • Veuve Clicquot marks its 250th anniversary with optimism-themed advert
    • The Hidden Sea highlights the importance of the world’s oceans
    • Nielsen Ad Intel coverage
  13. Usage of Wine

    • Seven in 10 adults drink wine
      • Figure 40: Overall usage of wine, 2021 and 2022
    • Usage frequency is down on 2021
      • Figure 41: Usage frequency for wine, 2021 and 2022
    • Further cutbacks are likely over 2022-23
      • Figure 42: Wine usage once a week or more, by how consumers describe their financial situation, 2022
  14. Purchase of Wines

    • Overall wine buying remains unchanged since 2021
      • Figure 43: Purchase of wines, by type, 2021 and 2022
    • Ageing UK population will impede sales of Champagne and still rosé wines…
    • …while benefiting still white and red wines
      • Figure 44: Purchase of selected types of wine, by age, 2022
    • Income squeeze will affect some wine types more than others
    • Standard glass bottles dominate over other packaging types
      • Figure 45: Purchase of wines, by format, 2021 and 2022
    • Low- and non-alcoholic/alcohol-free wines fail to benefit from consumers’ alcohol cutbacks
    • Taste barrier remains for non-alcoholic/alcohol-free wines
      • Figure 46: Purchase of wines, by strength, 2021 and 2022
    • Include low/non-alcoholic/alcohol-free wines in meal deals
  15. Priorities when Buying Wine

    • Variety is the leading factor influencing buying
      • Figure 47: Priorities when buying wine, 2022
    • Brand loyalty is low in wine
    • Cost-of-living crisis could have divergent effects on brand loyalty
    • Retailers are under some pressure to maintain promotions
    • Under-35s are particularly likely to see food pairings as important
  16. Occasions for Wine

    • At-home occasions lead for wine
    • Make meal pairing suggestions more visible to shoppers
      • Figure 48: Occasions for drinking wine, 2022
    • Meal deals are effective in driving sales
    • Be more proactive with meal pairing suggestions for fortified wines
    • Drinking wine with a meal is the leading occasion in the on-trade
    • Income squeeze increases the price barrier for wine in the on-trade
    • On-trade operators should seek out wine brands that are not widely available at retail
  17. Behaviours Relating to Wine

    • Income squeeze prompts cutbacks in both on-trade and retail channels
      • Figure 49: Behaviours relating to wine, 2022
    • ‘Switch and save’ suggestions appeal widely
    • Rearranging wine aisles can help retailers to appeal to budget-conscious shoppers
    • Include reviews and ratings on-pack on cheaper wines to reassure shoppers
    • Reviews and recommendations are particularly valued by under-45s
    • Offer discounts and push a ‘Share your Knowledge’ message to incentivise recommendations
    • Put reviews and ratings in shoppers’ paths at the point of sale
      • Figure 50: Examples of POS display and on-shelf labelling highlighting Vivino ratings at Sainsbury’s, Didcot, 2021
  18. Attitudes towards Wine

    • Target low-key at-home occasions to support wine sales during income squeeze
      • Figure 51: Agreement with the statement ‘Wine helps make evenings at home feel more special’, by how consumers describe their financial situation, 2022
    • Target both solo and meal accompaniment drinking occasions
      • Figure 52: Attitudes towards wine, 2022
    • Wine’s associations with celebrations could help to support sales during the income squeeze
    • Six in 10 buyers see glass bottles as preserving wine’s quality better than other packaging formats
    • Highlight the environmental credentials of alternative packaging types
      • Figure 53: Infographic by When in Rome comparing the carbon footprint of different wine packaging types, 2022
    • Further explore the use of recycled glass
    • Lighter weight bottles have economic as well as environmental advantages
  19. Appendix – Data Sources, Abbreviations and Supporting Information

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

    • Market forecast and prediction intervals
      • Figure 54: Market forecast and prediction intervals for total value sales of still, sparkling and fortified wine, 2017-27
      • Figure 55: Market forecast and prediction intervals for total volume sales of still, sparkling and fortified wine, 2017-27
    • Market drivers and assumptions
    • Forecast methodology
  21. Appendix – Market Share

      • Figure 56: Leading brand owners’ sales and shares in the UK retail still wine market, by value and volume, 2019/20-2021/22
      • Figure 57: Leading brand owners’ sales and shares in the UK retail sparkling wine market, by value and volume, 2019/20-2021/22
      • Figure 58: Leading brands’ sales and shares in the UK retail Champagne market, by value and volume, 2019/20-2021/22
      • Figure 59: Leading brand owners’ sales and shares in the UK retail Champagne market, by value and volume, 2019/20-2021/22
      • Figure 60: Leading brands’ sales and shares in the UK retail fortified wine market, by value and volume, 2019/20-2021/22
      • Figure 61: Leading brand owners’ sales and shares in the UK retail fortified wine market, by value and volume, 2019/20-2021/22

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