Europe Wine Market Size, Share, By Product (Table Wine, Dessert Wine, Sparkling Wine, and Others), Distribution Channel (On-trade and Off-trade), and Country - Trends, Analysis, and Forecast till 2034

• The market is predicted to grow at USD 6.5 Billion till 2034.
• In 2024, the Europe wine market size was accounted for USD 4.5 Billion.
• The market is growing at a CAGR of 4.3%.

Wine is an alcoholic drink made from fermented fruit. Wine is most often made from grapes, and the term "wine" generally refers to grape wine when used without any qualification. The European wine market is growing due to a combination of factors including deep cultural integration of wine, rising demand for premium and organic wines, increasing disposable income, a thriving tourism industry promoting local wine experiences, diverse regional styles, evolving consumer preferences towards quality and sustainability, and the accessibility provided by e-commerce platforms.

Key Takeaways:

France has traditionally held the largest wine market in Europe, and there are several reasons for this including historical and cultural importance, high production and exports, high rate of wine consumption, established wine industry infrastructure, wine tourism, and others.

Key Drivers of Target Market:

Higher Rate of Wine Consumption in Europe Region can Drive Market Growth

A higher rate of wine consumption can drive market growth due to the increased demand for wine and it also encourages wineries, distributors, and retailers to expand their distribution channels, motivate producers to innovate, developing new wine varieties, leads to growth in wine tourism, and others.

• For instance, according to the data published by the European Parliament, the EU accounted for 48% of the global wine consumption in 2021, with a wine consumption of 114mhl. This was in line with a 10-year average and 3% higher than in 2020. In 2021, the largest consumption in the EU was recorded in France and Italy – 25.2 and 24.2 million hectoliters respectively.

Restraints:

Climate Change can Limit Market Expansion

Climate change has a significant impact on the global wine market. Droughts, heatwaves, wildfires, heavy and prolonged rainfall and hailstorms are affecting grape yields and quality, as well as their alcohol, acid and sugar content. Hotter temperatures cause grapes to ripen faster, bringing sugar (and alcohol) content up and acidity, which gives wine its freshness, down, while leaving insufficient time for tannins and other essential compounds to develop.

• For instance, according to the European Environment Agency report on climate change adaptation in the agriculture sector in Europe predicts that by the middle of this century, climate change will be having negative impacts on grape development and wine quality in the traditional winemaking regions of southern Europe.

Counterbalance Statements: Some potential solutions that could help the wine industry adapt and thrive despite climate change challenges are adopting climate-resilient practices, innovative wine production techniques, consumer education and engagement, and others.

Opportunities:

The Integration of Technologies Give Away for Opportunities in Future

Technology is playing an increasingly important role in the wine industry, from precision viticulture and data-driven winemaking to digital marketing and e-commerce. The adoption of advanced technologies, such as drones, robots, artificial intelligence, and blockchain, is transforming various aspects of the industry, leading to increased efficiency, enhanced consumer experiences, and more sustainable practices.

• For instance, in March 2024, The Moldovan wine industry, following its enthusiastic reception at ProWein, has entered a critical juncture. After the successful unveiling of two wines produced with the support of an Artificial Intelligence, key stakeholders will seek further collaboration with the nation's burgeoning tech and design sectors in the coming years, using innovation to strengthen their global competitiveness.

The market is distributed into product and distribution channels.

Product

Appertaining to product, the target market is broken down into table wine, dessert wine, sparkling wine, and others. The table wine dominates the target market due to its higher demand and popularity. 

• For instance, in October 2024, Sherry producers are starting to make table wine. As Sherry sales plummet, producers are turning to Vinos de Pasto to put their grapes to good use. 

Distribution Channel

The targeted market, by distribution channel, is classified into on-trade and off-trade. The off-trade distribution channel has a larger Europe wine market share than the on-trade distribution channel. This is because off-trade channels are more convenient and accessible for consumers.

Europe Wine Market Report Scope:

Segmentation:

By Product:

• Table Wine
• Dessert Wine
• Sparkling Wine
• Others

By Distribution Channels:

• On-trade
• Off-trade

By Region:

• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe

The companies involved in the market are FRATELLI BRANCA DISTILLERIE SPA, PERNOD RICARD WINEMAKERS, Unilever, LVMH, and among others. Product launch with innovative ideas, huge distribution network, strong brand reputation, significant marketing, and fundamental investments are key strategies implement by companies to achieve market growth.

List of Key Players in the Market:

•  FRATELLI BRANCA DISTILLERIE SPA
• Pernod Ricard Winemakers
• Justerini & Brooks
• LVMH
• Bronco Wine Company
• Radico Khaitan
• Alois Lageder
• Constellation Brands, Inc.
• Miguel Torres S.A.
• WEINGUT GEORG BREUER
• meilon GmbH

• In October 2024, Ardagh Glass Packaging-Europe (AGP-Europe) announced a new range of lightweight wine bottles produced in Germany for the European market. AGP-Europe says, the Bordeaux and Schlegel 750ml bottles are produced with a screw cap finish (BVS) and the Bordeaux range is also available with a cork mouth finish.
• In October 2024, Stoker Wines, a premium wine brand inspired by the literary legends of Irish author Bram Stoker, has officially launched in Romania. The company’s goal is not only to craft wines that reflect the quality of the Ceptura de Jos vineyards, but also to offer an immersive experience into the world of mystery and tradition that surrounds Bran Castle and the Transylvania region, while also encouraging responsible Dracula tourism.
• In July 2024, the Commission invited representatives of EU Member States to participate in a High-Level Group on Wine Policy where the challenges and opportunities for the sector will be discussed. The Group held its first meeting on 11^th September 2024. Stakeholder organisations also invited to the first meeting to present their assessment of the situation and outlook for the EU wine sector.
• In October 2023, Accolade Wines has launched a brand-new, premium European wine brand – Remastered. Available now in Tesco, the range comprises two Italian wines and a Sicilian Fiano – ‘remastered’ to attract new shoppers to the category.

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