According to a recently published industry report by Fact.MR, the projected valuation for the global red wine market in fiscal year 2022 is estimated to be US$ 82.7 billion. Over the assessment period spanning from 2022 to 2032, the market is anticipated to experience a moderate 5% compound annual growth rate (CAGR), ultimately reaching US$ 135 billion.
Between 2017 and 2021, the demand for red wine saw a growth rate of 2.3%, culminating at a valuation of US$ 78 billion. This restrained growth trajectory can be attributed to limited market penetration in various regions, as well as the premium nature of red wines, making them relatively expensive for consumers.
Manufacturers are capitalizing on the increasing popularity of the organic wine sector, which has witnessed significant growth in recent years. The rising trend towards consuming naturally-derived products is a major driving force behind this growth. Furthermore, the documented health benefits associated with organic red wine consumption, such as the reduction in cholesterol levels, high antioxidant properties, and the elimination of free radicals from the body, are expected to further boost its popularity.
Key Takeaways from the Market Study
· Global Red Wine market to expand nearly 1.6x from 2022-2032
· By type, shiraz and merlot red wines to hold 13% of global revenue share through 2032
· Sales of sweet red wines are expected to reach US$ 82.7 Bn by 2022, growing at a 4% CAGR through 2032
· Semi-sweet red wines to account for a revenue share exceeding 2/5th across the forecast period
· Light-bodied and full-bodied red wines to account for 9 out of 10 sales until 2032
· North America to capture a market share of 40% in the global red wines market
Rising social acceptance of alcoholic beverage consumption, coupled with documented instances of benefits associated with red wine is anticipated to deepen revenue pools for key manufacturers, says the Fact.MR analyst.
Competitive Landscape
The global market is highly fragmented with the presence of a large number of local and regional players. Market players are concentrating on product launches to broaden their market footprints.
Recent Developments
· In March 2021, Australia-based Accolade Wines has acquired Rolf Binder Wines of Barossa Valley in north-east Adelaide, Australia, for an undisclosed sum. Established in 1955, Rolf Binder Wines produces a wide range of highly acclaimed premium Barossa wines using fruit from its vineyards.
· In January 2021, E. & J. Gallo Winery (Gallo) announced the acquisition of more than 30 wine brands from Constellation Brands, Inc. The closing of the agreement between Gallo and Constellation was approved by the Federal Trade Commission on December 23, 2020.
· In September 2021, TWE introduced a four-strong Penfolds-branded red wine lineup made primarily from Napa Valley Cabernet parcels. The two higher-priced California Collection expressions are blended with a lower amount of South Australian Shiraz, so they aren’t entirely Californian.
These insights are based on a report on Red Wine Marketby Fact.MR.
