by The Champagne Market is estimated to be valued at US$ 7.67 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Champagne is a sparkling wine produced from specific grape varieties grown in the Champagne region of France following traditions and practices that depart from standard vinegar production. The primary grape varieties used in Champagne are black Pinot Noir and Pinot Meunier, and white Chardonnay. Champagne is sold domestically and internationally in bottles, cans, and on draft.
Market Dynamics:
The Champagne market is primarily driven by the increasing popularity of premium drinks across the globe. Changing lifestyles and rising disposable incomes have encouraged consumers to spend more on luxury beverages like Champagne. According to studies, millennials today are more inclined towards premium drinks and perceive Champagne as a symbol of luxury, sophistication and celebration. This has boosted the sales of Champagne worldwide over the past few years.
Another key factor stimulating the demand for Champagne is its extensive use for celebratory occasions like weddings, engagements, anniversaries etc. Champagne is considered the drink of celebration and is widely preferred for special moments and parties. The increasing number of social gatherings and festivities is positively impacting the consumption of Champagne on a global level.
Segment Analysis
The Champagne market is divided into two key segments – Prestige Cuvée and Non-Vintage. The Prestige Cuvée segment dominates the market with over 50% share as it consists of premium expensive wines that are blended from the best grapes and vintages to offer superior quality. These are aged for longer duration of 3-4 years before release in the market.
PEST Analysis
- Political: The Champagne region located in France has legal protection under the European Union law that no other region can use the name Champagne except for sparkling wines produced according to the strict regulations in that region.
- Economic: High disposable incomes and luxury spending especially in developed markets is driving the sales of premium Champagne which is considered an expensive luxury good.
- Social: Champagne is considered a symbol of celebration and luxury consumed at weddings, events and parties. Increasing socialization and celebrations are positively impacting the market growth.
- Technological: automated equipment for harvesting grapes and chemical analysis help in consistent quality production while blockchain technology is being adopted by some brands to track supply chain and ensure authenticity.
Key Takeaways
The global Champagne market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing consumption during festivities and events. The market size is projected to reach US$ 11.29 Bn by 2030.
Europe leads the global Champagne market with over 80% share driven by the large production and consumption base in France and U.K. North America follows as the second largest region driven by high spending on luxury goods in U.S. and Canada.
Key players operating in the Champagne market are Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger. The top players are focused on innovative packaging, limited editions and celebrity endorsements to boost their premiumization strategy and market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
