White Wine Market

Market Overview

The global white wine market sixe was valued at USD 47,353.20 million in 2022. It is projected to reach USD 95,068.05 million by 2031, growing at a CAGR of  5.9% during the forecast period (2023-2031). 

Wine is an essential component of European cultures, and this trend is spreading to other regions, including Asian nations. In these areas, the working class and younger generations consume wine often and host house parties. These elements are anticipated to stimulate market expansion. White wine is becoming increasingly popular among consumers, as seen by their choice of glass in the summer. Due to wine's health advantages, the premiumization of wine products, flavor improvements, and growing global distribution networks, the wine market is projected to be driven by an increase in consumer demand. White wine drinkers are thought to be well off. This is helping the global wine market as a whole develop.

Highlights

• The dry white wine segment is the highest contributor to the market by type.
• The off-trade segment is the highest contributor to the market by distribution channel.
• Europe is the most significant revenue contributor by region.

Market Dynamics

Market Drivers

Growing Preference for Premium White Wine

Due to the rising demand for white wine beverages with distinctive and energizing flavors, the premium white wine market has experienced significant expansion. Additionally, it is predicted that the need for luxury white wine will grow in the upcoming years due to consumers' rising preference for premium white wine beverages. While younger millennial customers are displaying a growing indifference to alcohol, elderly consumers want to cut back on their consumption. As a result, more consumers are choosing to drink expensive wine. There is a shift from every day to seldom wine consumption in nations with a strong wine heritage and countries with less developed wine traditions.

Wine is no longer considered a necessary mealtime companion or an integral element of daily life. The market's demand for premium wine is fueled by drinking becoming less of a routine and a treat. Consumers in North America today have more refined tastes than those in other places. They are always eager to experiment with new, premium alcoholic beverages. Alcoholic beverages that contain natural components perform better, and customers are becoming increasingly interested in these goods.

Market Restraint

Consumers' Gradual Shift Toward Other Alcoholic Beverages

Modernization and the rise in alcohol usage are current trends. This has inspired producers to release brand-new, cutting-edge alcoholic beverages. Due to their affordable offerings, consumers are gradually changing their preferences for other alcoholic drinks, such as beer, liquors, and spirits. The market under investigation is about to undergo a transformation that could impede future growth. However, producers are working hard to capitalize on this situation by releasing goods with various ABV contents on the market to reclaim their customers' attention.

For instance, craft beer has become increasingly popular among customers worldwide, especially younger consumers. The demand for variety, flavor, and high-quality beer, as well as the increasing disposable money, are the main influences on the trend toward craft beer consumption. Craft beer drinkers desire more prolonged social drinking occasions than just a few rounds. Another reason for this rising popularity is calorie counting. The British craft brewer BrewDog's 0.5% beer, Nanny State, contains 26 calories per 330-milliliter bottle as opposed to 150 calories for Punk Ale, which is its best-selling beverage, or 139 calories for a standard Coca-Cola can of the same size.

Market Opportunities

Alcohol Use is Increasingly Seen as a Social Status Indicator

Some elements encouraging alcohol socialization among consumers are social interactions, industrialization, and the growing adoption of western culture. Wine with little or no alcohol is increasingly popular since drinking alcohol is seen as a sign of social status. Due to its claim of refreshing and low ABV offers, it is rapidly gaining appeal among millennials and young people. In developing nations, it is mainly connected with many occasions and is offered as a table wine with the everyday fare. The market is expected to grow due to the manufacturers' increased motivation to produce and introduce novel goods.

Particularly among the millennial and baby boomer generations, low-alcohol-by-volume beverages are experiencing an increase in demand in the North American market. With customers' increasing interest in health awareness and the availability of a more comprehensive product selection with improved flavor, which helps them choose products quickly based on their preferences, sales of low-alcohol beverages have been increasing.

Regional Analysis

Europe Dominates the Global Market

The global white wine market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Europe is the most significant revenue contributor and is expected to grow at a CAGR of 3.20% during the forecast period. Due to pricing disparities between on-trade and off-trade wine products, consumers' preference for at-home consumption dominates the Spanish wine market. According to data from the Spanish Wine Market Observatory and the International Organization of Vine and Wine, almost 60% of consumers consider themselves regular wine drinkers. Due to the trend toward Designation of Origin, Vermouth, and Fortified Wines, the market had good development during the study period and is predicted to rise over the projected period. White wines with Designation of Origin have done well during the study period because consumers seek premium, higher-quality goods that they believe to be produced from organic, natural ingredients.

North America is expected to exhibit a CAGR of 2.45% during the forecast period. Growing wine prices and increased disposable income primarily support the country's white wine market. Chardonnay, Pinot Grigio, Sauvignon Blanc, and Pinot Gris are the main grapes boosting the market's expansion. One of the most well-known labels in the nation is Canadian White Wine. The Liquor Control Board of Ontario (LCBO) reports that white wine makes up a sizeable portion of the wine market, dominated by blended red wines. The country's rising demand for aromatic white wines has expanded the market in recent years. According to Mywinecanada, white wines go well with pasta and seafood. Whitefish, risotto, avocado, and other high-protein dishes with rich flavors will go well with a full-bodied white wine. 

In China, white wine is a hip indication of social standing and affluence. While the lower end of the market is losing ground, Chinese customers tend to spend more on higher-quality wine. The majority of white wine consumption occurs at social events. The varieties go well with white meat and seafood dishes, according to consumers. The Chinese also favor imported Australian white wine the most. Nearly everyone in China, from bars and restaurants to internet retailers, sells Australian wines. Premium vintages are available in hotels, VIP clubs, banquet rooms, and even workplace canteens. While second and third-tier cities typically have informal wine clubs with assistance from important local distributors, significant cities typically have wine bars with comprehensive lists of imported beverages. According to market research, chardonnay and Riesling are China's most famous Australian white wines.

Segmental Analysis

The global white wine market is segmented by type and distribution channel.

Based on type, the global white wine market is bifurcated into dry white wine and sweet white wine.

The dry white wine segment is the highest contributor to the market and is estimated to exhibit a CAGR of 2.60% during the forecast period. It is perfect for cocktail cocktails due to its strong flavor, low sweetness, high acidity, and citrus fruit flavors. Global demand for dry and white wine is driven by rising disposable income, outside dining, and bar drinking. Additionally, consumers who are watching their calories choose dry white wine over other wines because it has a residual sugar content below 1%. Leading companies are providing several wines with low-calorie labels in response to this demand. Sauvignon Blanc, Albarino, Pinot Grigio, and Gruner Veltliners are a few of the well-liked dry white wines. These wines are well-known for their intense, sharp tastes and are enjoyed both for drinking and cooking. 

The market demand for wines in developing nations worldwide is being driven by the expanding acceptance of western culture in the eastern globe. Additionally, the sweet white wines' sweet profile makes them more palatable, particularly for people new to wine, which increases market demand. Additionally, consumers are becoming more willing to experiment with different kinds and perceive wine as a pleasant beverage that increases its consumption at an on-trade distribution channel. Sula is one of the most well-known brands in India and is very well-liked by the people there. The company sells a variety of sweet white wines under the Sula brand, such as Spumante, Bouchard Ainé and Fils Chardonnay Les Vendangeurs, Sula Dessert Wine, etc. 

Based on the distribution channel, the global white wine market is bifurcated into on-trade and off-trade.

The off-trade segment owns the highest market and is estimated to grow at a CAGR of 1.80% during the forecast period. Due to the relative accessibility of wines of various sorts, brands, price ranges, and tempting promotional offers, which boosts the product's sales via these channels, the supermarkets/hypermarkets segment accounts for a sizeable portion of the market. Urban areas are seeing an increase in supermarkets, which guarantees more customers. Customers can compare wines' countries of origin, check critics' evaluations, and then choose what appeals to them, thanks to the designated shelf space at these outlets. These services drive the demand at these stores' supermarkets and hypermarkets. These establishments frequently sell bulk wine purchased from the producer in huge containers and then put into retail bottles.

One of the main draws for customers as a way to buy white wines has arisen as specialty shops. These businesses portray themselves as wholly focused on the wine market, drawing customers inside to make purchases. The segment's main factors in the market's growth are the vast choice of products available and knowledgeable employees. Specialty wine shops are widely available in major cities in the United States, the United Kingdom, Germany, France, and other western countries. Customers prefer to buy wine there for special occasions and as gifts. The Whiskey Exchange and Total Wine and More are two examples of specialty shops in the United States. 

The other off-trade distribution channels, such as wholesale clubs, online shopping, and others, further aid the sale of white wine. Due to the relative availability of a wider variety of options, ease, and a vast price gap compared to any other channel, the online retail industry is expanding quickly. Online retail platforms are becoming increasingly popular with consumers as they offer attractive services like same-day deliveries, special discounts, and others. For instance, in the United States, the Amazon Prime Now mobile app offers one-hour delivery of alcoholic beverages, which also includes white wine. Additionally, food service aggregators like Uber Eats have expanded their wine and other alcoholic beverage home delivery services. Due to the easy availability of bulk products and the expansion of their product lines, wholesale clubs provide a one-stop shopping experience that significantly contributes to the segment's growth.

Customers' growing propensity is primarily pushing the on-trade channel for eating out and socializing. The accessible and welcoming atmosphere of on-trade channels like restaurants, bars, clubs, hotels, and others draws many customers, driving sales. Due to the appealing presentation, sparkling white wines are the most popular among customers in these sales channels. Due to their premium status, a few sparkling white wines, like Prosecco, Pinot Grigio, Godello, Malbec, and Pinot Noir, are becoming increasingly popular. This increases sales in the on-trade channel. The demand for white wines at bars, clubs, hotels, and other establishments is growing due to rising disposable income, an increase in the population of the middle class in developing nations, and the expansion of the tourism sector in regions like Southeast Asia and India.

Recent Developments

• October 2022- One of the oldest properties in Bordeaux, France, Château Lanessan, was recently acquired by Treasury Wine Estates Ltd. The acquisition is the most recent step in expanding Penfold's multi-regional luxury wines.
• March 2022- The Fayard family and Pernod Ricard announced the signing of an agreement for Pernod Ricard to acquire a majority investment in Château Sainte Marguerite, a Cru Classé Côtes-de-Provence Rosé since 1955, to complete its portfolio of high-end wines.