April 20, 2024

Wine Market is Estimated to Witness High Growth Owing to Increasing Consumption Among Millennials

Red wine, in particular, contains antioxidant polyphenols that are beneficial for health. With the increasing health consciousness among consumers, the demand for wine is surging. Moreover, millennials are willing to experiment with different wine variants, flavors, and tastes, driving the market growth.

The global wine market is estimated to be valued at US$ 3422.75 Bn in 2024 and is expected to exhibit a CAGR of 30% over the forecast period of 2024 to 2031.

Key Takeaways
Key players operating in the Global Wine Market Size are Semtech Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd., Comcast Corporation, Hewlett Packard Enterprise, NETGEAR Inc., TEKTELIC Communications Inc., Kerlink, Embit S.R.L., IMST GmbH, Aaeon Technology Inc, Laird Connectivity, Multi-Tech Systems Inc., Loriot SAS, Link Labs Inc., Senet Inc., WI-SUN Alliance, Actility S.A., The Things Industries B.V., Libelium Comunicaciones Distribuidas S.L. The key players are focused on new product launches and partnerships to expand their market share. The rising health consciousness and change in lifestyle and food habits have opened opportunities for new product launches catering to various taste preferences. The manufacturers are expanding globally to leverage the opportunities posed by emerging economies like Asia-Pacific and Latin America.

Market Drivers
Increasing consumption of wine among millennials is one of the key drivers of market growth. Millennials are more health-conscious and prefer wine over other alcoholic beverages owing to its various associated health benefits. They are willing to experiment with different flavors, varieties, and tastes. Moreover, the rising popularity of social drinking is another factor spurring the demand. Changing socio-economic conditions and improving lifestyles also contribute to market expansion.

PEST Analysis
Political: Wine production and sales are regulated by local and national laws related to alcohol percentage allowed, labeling and branding rules, import and export policies, subsidies and tariffs on wines. Changes in any such regulations can impact the wine market.

Economic: Economic growth leads to rise in disposable incomes increasing the demand for wines globally. Factors like inflation, interest rates, currency exchange rates and trade agreements influence the affordability and pricing of wines across borders.

Social: Changing social demographics, cultural trends, health consciousness and lifestyle trends influence wine consumption patterns. Rise of nuclear families, individualism, social media influence and mobility impact wine choices and occasions of purchase.

Technological: Advanced technologies are being used for sustainability in vineyards, precision viticulture, supply chain optimization, anti-counterfeiting measures and direct-to-consumer digital channels. Blockchain and AI are exploring applications to enhance transparency and personalized recommendations.

Europe accounted for over 60% of the global wine market value in 2024, concentrated majorly in countries like Italy, France, Spain and Germany due to heritage, climatic conditions and established wine cultures. Developing regions in South America and Asia Pacific are expected to witness fastest value growth through 2031 led by rising populations, urbanization and economic growth in countries like China, Brazil, India and Southeast Asia.

The wine market in the United States represented nearly 25% of the global market value in 2024 and is projected to remain among the top regions globally through 2031 supported by factors like increasing health awareness, growing ethnic population, immigration and rise of craft breweries and distilleries. The wine consumption trends in the US are significantly influenced by changing demographics as well as social, economic and technological advancements.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it