Wine Corks Market

Market Overview

The global wine corks market size was valued at USD 17.96 billion in 2021. It is expected to reach USD 34.15 billion by 2030, growing at a CAGR of 7.4% during the forecast period (2022–2030).

The necks of wine bottles are sealed with wine corks, also known as stoppers. Wine corks are traditionally manufactured from cork (bark of the cork oak), but synthetic materials have been employed in recent decades. Expected alternative wine closures include glass stoppers and screw caps. Corks are produced for both still wines and sparkling wines. The wines are bottled under pressure for sparkling wines, resulting in mushroom-shaped corks, and are secured with a muselet, sometimes known as a wire cage.

On the worldwide wine cork market, natural corks are the most popular; approximately 70 % of corks used for wine are natural, and their primary purpose is to preserve the wine for long-term preservation. Due to the excellent elasticity of the cellular structure, natural corks have been utilized extensively for centuries. They are quite pliable and can expand and contract. Therefore, the majority of winemakers prefer natural corks to synthetic ones.

Typically, polyethylene-based synthetic corks offer predictable oxygen transfer rates and an impenetrable barrier. These corks do not decay and do not dry out because they are not manufactured from wood. Therefore, putting bottles on their sides is unnecessary to keep the corks moist. Furthermore, synthetic corks do not shatter. Thus, there is no possibility of cork fragments entering the wine. The production of these corks is less expensive than that of natural corks, and they are frequently less costly than screw caps. An increase in the number of wineries is one of the primary reasons fueling the global wine corks market expansion. Consumer demand for wine has increased over the past many years. In addition, millennials are taste-experimental, and their consumption patterns of alcohol goods such as wine, champagne, and beer differ from those of boomers. Thus, the increase in wine consumption presents essential players with the unrealized potential to construct or expand their facilities.

Market Dynamics

Market Driving Factors

Growing Number of Wineries to Boost Market Progress

The increasing number of wineries is a primary driver driving the global wine corks market. The expanding number of wineries primarily drives this increase. In recent years, consumers have upgraded their level of interest shown by consumers in wine, resulting in higher wine sales. Their consumption patterns of alcoholic beverages, such as beer, wine, and champagne, are distinct from boomers' consumption patterns. Consequently, significant players have opportunities they haven't taken advantage of yet to either construct new facilities or expand existing ones to meet growing consumer demand.

Rising Demand for Wine in Foreign Markets to Aid Growth

Cork producers now have the chance to increase their export business due to the growing demand for wine in new locations. This demand is being driven by expanding wine consumption into previously untapped markets. According to the data provided by the International Organization of Vine and Wine, the quantity of wine produced in Argentina and Chile increased by 23% and 36%, respectively. In addition, exports in Chile, Australia, and South Africa each climbed by 7.7 %, 6.7%, and 4.7%. Winemakers in these countries are ramping up output to satisfy the ever-increasing demand in their markets and capitalize on opportunities to sell their wares elsewhere.

Substantial Replacement Rate in Established Markets

The significant replacement rate in Italy, Spain, and France are the leading wine-producing countries globally, accounting for roughly half of the entire production worldwide. According to Eurostat, approximately 35–40% of the wineries and vineyards in these countries have been in operation for more than 30 years, and about 50% of the wineries and vineyards in these countries have been in operation for between 10 and 30 years. The rates of equipment replacement by category range from approximately 15 to 20 years for large equipment such as fermenters, manufacturing facilities for cork stoppers, tanks, and refrigeration systems, amongst other types of equipment.

Market Restraining Factors

High Capital and Maintenance Expenses to Restrict Market Growth

The high cost of wine cork machinery has remained the most significant obstacle for wine cork makers, although they also confront several other problems. The machinery manufacturing wine corks consists of various components, including sensors, actuators, and spargers. The price of the various features and technology used in the production of wine varies according to capacity and winery size (in terms of cases), creating a barrier for the market in developing countries such as India and China, where customers are price-conscious. The requirement that manufacturers of synthetic wine cork must make substantial financial investments to acquire machinery and other relevant equipment is projected to inhibit the expansion of the industry.

Key Market Opportunities

Augmentation of Technological Innovation in Winemaking to Boost Market Opportunities

Cork manufacturers on the cutting edge of innovation are fusing traditional practices with cutting-edge technologies, resulting in new facilities that are both energy- and resource-efficient. Additionally, using fewer resources, gravity feed, underground construction, and natural light produce outstanding wines.

Using solar and co-generated power can result in considerable cost and time savings. It is anticipated that the increased use of robotics and automation in cork manufacturing would present significant potential for producers of technology used in wine production. The execution of artificial intelligence, robotics, and automation in the manufacturing of synthetic cork is anticipated to eliminate ineffective processes, resulting in faultless and lightning-fast operations in the winemaking process, which increases the output of wine.

Segmental Analysis

The global wine corks market is segmented by Type, Distribution Channel.

By Type

Based on type, the global wine corks market is divided into Natural and Synthetic Segments.

The natural segment is the most dominant and is expected to grow at a CAGR of 6.6% during the forecast period. Natural corks are harvested from various trees, while synthetic corks are manufactured from polyethylene. Natural wine corks are harvested from the Quercus suber tree, called cork oak. These oaks expand slowly and produce orange cork bark. With an average lifespan of 200 years, these trees can have thousands of natural wine bottle stoppers per tree. Natural corks are only partially airtight and not wholly sealed because minute holes inside the cork structure allow some air to pass through. This trait may be advantageous or detrimental depending on the preserved wine type. Most corks utilized on the worldwide wine cork market are natural corks. A wine cork's primary purpose is to protect and store wine for an extended period.

Most winemakers choose natural corks over synthetic ones. Synthetic corks make it more challenging to manage oxygen intake since they do not expand and contract as the bottle does. As a result, natural corks are superior and favored for aging wines over extended periods. Typically, synthetic wine corks are constructed from plastic derived from petroleum or plant-based ingredients. The vast majority of plastic corks are composed of polyethylene.

Similarly, plant-based synthetic stoppers are manufactured using bio-polyethylene, a bioplastic derived from ethylene, a byproduct of processing renewable raw materials such as sugarcane. Typically, polyethylene-based synthetic corks offer predictable oxygen transfer rates and an impenetrable barrier. Since these corks are constructed from wood, they neither decay nor dry out.

By Distribution Channels

Based on distribution channels, the global wine corks market is segmented into Online and Offline Distribution Channels.

The offline segment owns the highest market share and is expected to grow at a CAGR of 6.6% during the forecast period. Offline sales channels for the wine corks industry include business-to-business telephonic and marketing executive sales channels, while online sales channels are websites. There are two offline sales channels for the wine corks market: business-to-business telephone sales and marketing executive sales. Corks for wine bottles are business-to-business product categories. Cork manufacturers have a marketing staff that contacts wine bottle manufacturers and wine producers to sell their product portfolio. This marketing strategy helps customers understand the differences between cork varieties, allowing them to differentiate across categories. Online shopping platforms are websites that allow people to buy and sell goods and services over an electronic network, most commonly the internet. These transactions may be business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), or consumer-to-business (C2B). Increased penetration of various online portals in emerging regions and an increase in the number of promotions or discounts encourage consumers to acquire wine corks via online channels.

Regional Analysis

The global wine corks market is primarily classified into three regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Is Europe Likely to Dominate the Global Wine Corks Market?

Europe is the most significant contributor to the growth of the global wine corks market and is expected to 4.9% CAGR during the forecast period. It is predicted to hold its dominance during the projection period since the region produces and consumes most wine. Europe accounted for 48.20% of the worldwide wine corks market. The prevalence of European countries, including France, Italy, Germany, Russia, and others, has increased their consumption and production of wine. In addition, the rise in wine consumption is predicted to encourage vineyard producers to expand their production facilities, hence fueling the expansion of the wine corks market.

North America is anticipated to gain significant traction in the global wine corks market during the forecast period. This is owing to the increase in winemaking plants in critical countries like the United States, Canada, and Mexico. The market in North America is evaluated by considering three powerful nations: The United States, Canada, and Mexico. Numerous developed and wealthy countries in North America, such as the U.S., Canada, Mexico, and others, are expected to stimulate the wine corks market expansion. Increases in industrial development and manufacturing demand are anticipated to allow wine cork makers to create or extend their businesses, fostering market expansion.

Asia-Pacific is anticipated to contribute to the need for wine production machines. This is primarily attributable to China, India, Australia, and Japan. These are the most extensively studied countries in the Asia-Pacific region. The region held a 14% share of the worldwide market and is anticipated to grow steadily throughout the projection period. This region's market expansion is due to its large population, rising disposable incomes, increasing demand for premium wines, and rapid westernization.

Recent Developments

• May 2022- JC Ribeiro enters a joint venture for wood top supply.
• December 2021- J. C. Ribeiro was proud to collaborate with the scotch whisky Association (SWA).
• May 2022- Jelinek Quiet Cork Underlayment Is the Ultimate Natural Solution To Sound Control.
• March 2022- Jelinek Cork offers many types and styles of stoppers and closures, along with shrink caps and wire cages.

Wine Corks Market Segmentation

By Type

• Natural
• Synthetic

By Distribution Channel

• Online distribution channel
• Offline distribution channel

By Regions

• Europe
• North America
• Asia-Pacific
• LAMEA