Home Food & Beverages Champagne Market Is Expected to Yield $12.37 billion by 2031

Champagne Market

Champagne Market Size, Share & Trends Analysis Report By Price Point (Economy, Mid-Range, Luxury), By Distribution Channel (Supermarket/Hypermarket, Specialty Stores, On-trade, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRFB55427DR
Study Period 2019-2031 CAGR 6.2%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 7.2 Billion
Forecast Year 2031 Forecast Year Market Size USD 12.37 Billion
Largest Market Europe Fastest Growing Market North America

Market Overview

The global champagne market size was valued at USD 7.2 billion in 2022. It is estimated to reach USD 12.37 billion by 2031, growing at a CAGR of 6.2% during the forecast period (2023–2031). Since the majority of champagne is produced and consumed in Europe, the continent commands the majority of the market. Growing Requirement for High-End Luxury Goods, Rising Spendable Income as a Result of Increasing Urbanization.

Champagne is a special kind of sparkling wine that can only be made in the Champagne wine region of France, where it originated and is still produced today. A large population base in emerging nations such as India and China is anticipated to significantly increase demand for champagne during the forecast period in Asia-Pacific. To be eligible for the Champagne appellation, a wine must go through a secondary fermentation in the bottle, the grapes used to make Champagne must come exclusively from certain areas within the region, the grapes must be pressed using particular techniques, and the wine must go through a secondary fermentation in the bottle to produce carbonation. Chardonnay, Pinot Noir, and Pinot Meunier are the grape types used to make Champagne, almost entirely made from these three varietals.

However, very small amounts of Pinot blanc, Pinot gris (which in Champagne is referred to as Fromenteau), Arbane, and Petit Meslier are also used to make wine. Champagne had a reputation for being associated with royalty throughout the 17th, 18th, and 19th centuries. Champagne was particularly popular at this time. The leading manufacturers of Champagne made an effort, through advertising and packaging, to portray the idea that their products were associated with nobility and monarchy. This was done to increase sales. Consequently, Champagne gained an ever-increasing following among the growing middle class.

Market Dynamics

Global Champagne Market Drivers

Increase in Demand for Premium Quality Luxury Products

As global living standards rise, it is anticipated that the desire of consumers to purchase luxury goods of superior quality will increase. The consumption of these items is frequently associated with celebrations and happy occasions. In addition, product dependence increases substantially at weddings, parties, and social gatherings, which is anticipated to drive market growth in the coming years. In addition, sales of luxurious premium products such as champagne have increased significantly in most regions, primarily due to increased consumption. To engage tech-savvy young consumers who seek greater value for money, increased personalization, and integrated digital access, luxury brands have developed effective social media strategies to increase champagne sales.

In addition, the Internet has become an integral part of the purchasing habits of various segments of global consumers, which drives the expansion of the global market. Moreover, a large population base in emerging nations such as India and China is anticipated to significantly increase demand for champagne during the forecast period in Asia-Pacific.

Increase in Disposable Income Due to Rapid Urbanization

In recent years, the rate of urbanization has accelerated around the world. Consequently, per capita disposable income has increased simultaneously. Countries such as France, the United States, and China consume and produce more champagne than their per capita income, which promotes the expansion of the global market. In addition, other countries, such as Spain, Germany, and the United Kingdom, are significant champagne producers, contributing to the expansion of the market.

As the global level of disposable income rises, so does consumers' desire for high-quality luxury products and services, thereby driving the expansion of the market. In addition, the demand elasticity of luxury goods is larger than that of essential goods; consequently, the market is anticipated to expand rapidly during the forecast period.

Global Champagne Market Restraint

Implementation of Stringent Government Policies Toward Advertisement and Distribution

Excessive alcohol consumption has been linked to life-threatening conditions such as liver cirrhosis, pancreas inflammation, and heart and brain injury. The rise in the number of consumers with alcoholism has been a significant concern for governments. Consequently, many governments have imposed stringent regulations on distributing and selling these products.

In addition, restrictions on advertising and promotion of such products restrict the sale of champagne, thereby impeding the expansion of the global market. In addition, some governments and non-governmental organizations (NGOs) oppose the consumption of these beverages.

Global Champagne Market Opportunities

Emerging Markets Present Lucrative Opportunities

During the period covered by the projections, developing countries such as China, India, and Brazil present the champagne sector with a lucrative chance for the industry's expansion. This may result from a general shift toward a more tolerant attitude toward the drinking of alcoholic beverages as well as a general rise in the desirability of toasting important events with champagne. It is anticipated that the expansion of the market in emerging nations will be boosted due to these factors.

In addition, new chances for market players to enter the market are projected to become accessible due to increased social media trends, improved lives of millennials and Gen Z, and increased spending on luxury products. These three factors are expected to combine to provide new opportunities for market participants to enter the market.

Regional Analysis

Based on region, the global champagne market is bifurcated into North America, Europe, Asia-Pacific, LAMEA.

Europe Dominates the Global Market

Europe is the most significant global champagne market shareholder and is estimated to exhibit a CAGR of 2.9% over the forecast period. Europe dominates the market, as most champagne is produced and consumed in the region. France is the only producer of champagne and the leading consumer in the region, accounting for more than half of the market share. Within the European countries, the UK, Germany, Italy, and Belgium are some of the largest consumers of champagne in the world. The demand in Europe has grown considerably in the last few years. MajorMajor player such as LVMH (Louis Vuitton Moët Hennessy) dominates the major market share by offering its champagne through different brands, including Moët & Chandon, Krug, Veuve Clicquot, Hennessy, among others.

North America is anticipated to exhibit a CAGR of 3.0% over the forecast period. The champagne market in North America is expected to grow significantly due to health benefits, premiumization of champagne products, innovation in Flavors, and more advanced distribution networks. Significant economic growth and a rise in acceptance of the consumption of alcohol are driving the market growth in Europe. Moreover, the consumption of champagne at various social programs such as parties, gatherings, and events has increased considerably, which provides untapped opportunities for manufacturers. It has been observed that major key players from the region, such as Pernod Ricard, are growing their portfolio of American brands. In addition, players are collaborating with online retailers to sell their products to expand their customer base and seize the opportunity to cater to the requirements of a huge and diversified customer base.

Asia-Pacific is a significant marketplace. As a result of rising per capita income, China is currently in the driver's seat in the Asia-Pacific market. In addition, the premium pricing of items has presented market actors with opportunities that have not yet been fully exploited. The worldwide champagne market has reaped major benefits from the expansion of the economy in the Asia-Pacific area because of improvements in consumer purchasing power and general living conditions. This is mostly attributable to the region's rising living standards. As a result of the growing demand for champagne at social gatherings and other occasions, China has established itself as the preeminent nation in the Asia-Pacific area.

In Latin America, due to rising consumer expenditure on high-end goods like champagne, Argentina and Brazil are among the top nations. Drinking champagne at social gatherings or during festivities has gained popularity and become a status symbol, which is a key component in expanding the champagne business. Additionally, the construction of champagne factories is anticipated to provide jobs for domestic and foreign workers in numerous provinces of Argentina and Chile. 

The Middle East and Africa market is growing steadily. As the UAE's tourism sector has grown, so has the demand for wine and champagne, which is expected to double throughout the projection period. Additionally, a boost in the number of international visitors to the nation has further fuelled the demand for food and drink, affecting the expansion of the champagne industry. The three biggest businesses in the area are Diageo, Pernod Ricard, and Bacardi-Martini.

Report Scope

Report Metric Details
Segmentations
By Price Point
  1. Economy
  2. Mid-Range
  3. Luxury
By Distribution Channel
  1. Supermarket/Hypermarket
  2. Specialty Stores
  3. On-trade
  4. Others
Company Profiles Diageo plc La Marca USA Cook’s Champagne Cellars F. Korbel and Bros. Champagne Taittinger
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global champagne market is bifurcated into price point, and distribution channel.

Based on the price point, the global market is bifurcated into economy, mid-range, and luxury. 

The economy segment dominates the global market and is projected to exhibit a CAGR of 3.3% over the forecast period. Products with an economical price point are characterized by having low prices and a primary focus on appealing to a bigger market base. The primary factor contributing to this segment's commanding market share is that bars, hotels, lounges, and airline services are paying more money to keep champagne with a variety of flavor variants on their menus. Cabernet Sauvignon, Old Vine Zinfandel, and Chardonnay are just a few of the well-known brands of champagne that may be found at more affordable prices.

The expansion of the consumer base brought about by the availability of a large selection of cheap champagne would contribute to the market's growth throughout the period covered by the forecast. Alterations in customer tastes and preferences, such as a growing interest in affordable champagne in various Flavors, are also contributing to the expansion of the market.

Based on distribution channel, the global champagne market is segmented into supermarket/hypermarket, specialty stores, on-trade, and others. 

The supermarket/hypermarket segment dominates the global market and is predicted to exhibit a CAGR of 2.9% during the forecast period. Supermarkets/hypermarkets have become competitive in the field of the alcoholic industry to attract more consumers. They offer a wide range of products from food items, groceries, and drinks to merchandise under one roof. Some of the supermarkets, such as Waitrose, offer premium products, while others focus on low-priced bulk champagne. Hypermarkets have a higher assortment of products compared to supermarkets. The supermarket/hypermarket segment is the dominating distribution channel in the champagne industry, and this dominance is likely to strengthen in the coming years. This is attributed to the availability of huge varieties of products, which are among the major attractions for consumers at supermarkets.

Moreover, these stores serve as a one-stop destination for low-priced products, thereby offering increased convenience to consumers. Furthermore, these stores offer a bulk volume of products as per the consumer requirements. They have nearly 30% of the margin on the selling price. Alcohol sales in various emerging nations continue to rise in supermarkets, as retailers continue to focus on premiumization.

Market Size By Price Point

Recent Developments

  • October 2022- Societe Jacques Bollinger SA introduced a new limited-edition champagne, "Special Cuvee, The Bollinger Style," to celebrate 40 years of partnership with 007. The limited-edition gift box features the silhouette of James Bond alongside his Aston Martin DB5.
  • April 2022- Champagne Krug, an LVMH brand, launched two new editions of champagnes, " Grande Cuvées," white and rose. Both champagnes were composed in 2014, which Krug describes as an Erratic year.

Top Key Players

Champagne Market Share of Key Players

Diageo plc La Marca USA Cook’s Champagne Cellars F. Korbel and Bros. Champagne Taittinger

Frequently Asked Questions (FAQs)

How big is the champagne market?
The global champagne market was valued at USD 7.2 billion in 2022. It is estimated to reach USD 12.37 billion by 2031, growing at a CAGR of 6.2% during the forecast period (2023–2031). 
Europe region has the largest market share in the champagne market.
Diageo plc La Marca USA Cook’s Champagne Cellars F. Korbel and Bros. Champagne Taittinger
Emerging markets present lucrative opportunities is opportunity in market.
The global champagne market is bifurcated into price point, and distribution channel.


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