The global wine market size was valued at USD 463.5 billion in 2024 and is projected to reach from USD 490.23 billion by 2025 to USD 749.1 billion by 2033, growing at a CAGR of 5.5% during the forecast period (2025-2033).
The global market is set for sustained growth, propelled by shifting consumer preferences and rising global demand. Increasing interest in premium and organic wines is enabling producers to diversify their portfolios, capturing a larger portion of the market. The shift toward e-commerce and direct-to-consumer sales channels is revolutionizing liquor distribution, making it easier for consumers to access diverse offerings directly from producers.
Technological innovations are also influencing production and distribution processes. Automated bottling lines and enhanced fermentation technologies are improving both operational efficiency and product consistency, contributing to higher-quality at scale. According to the International Organization of Vine (OIV), major producing nations such as Italy, France, Spain, and the United States have experienced significant increases in production, largely due to heightened demand for grape-based alcoholic beverages. These countries aim to capitalize on the growing global thirst by expanding production capacities.
In contrast, countries like Germany, Argentina, South Africa, and China have maintained relatively stable production levels over the past five years, with only minor fluctuations reflecting steady domestic and international demand. Similarly, data from Wine Australia highlights that Australia has seen slight production variations over the past five years but remains one of the top five exporters globally, as noted by the Observatory of Economic Complexity (OEC). This underscores the country's focus on meeting both domestic and international demand.
These trends point to a dynamic global market, with growth driven by technological advancements, evolving consumer tastes, and strategic production efforts by major producing nations.
Wine Production by Country (millions of hectolitres)
| Country Name | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| U.S. | 23 | 24 | 22.4 | 24.2 |
| Brazil | 2.3 | 2.9 | 3.2 | 3.6 |
| Germany | 8.4 | 8.4 | 8.9 | 8.6 |
| Australia | 10.9 | 14.8 | 13.1 | 9.6 |
| Italy | 49 | 50 | 49.9 | 38.3 |
| France | 46.7 | 37.6 | 46 | 48 |
| Spain | 41 | 35.3 | 35.8 | 28.3 |
| China | 6.5 | 5.9 | 4.7 | 3.2 |
| Argentina | 10.8 | 12.4 | 11.4 | 8.8 |
| South Africa | 10.3 | 10.8 | 10.3 | 9.3 |
Source: Annual Reports, Investor Presentations & Straits Analysis
The global market is witnessing a significant shift toward sustainability and convenience, with surging demand for alternative packaging options like canned and boxed. These formats appeal particularly to younger consumers, including millennials and Gen Z, who value portability, eco-friendliness, and portion control.
Unlike traditional glass bottles, single-serving cans minimize waste and enhance convenience. In the U.S., the canned market saw a remarkable 125% increase from 2020 to 2021, according to its Intelligence, indicating a growing preference for these sustainable options. Brands like The Uncommon in the UK are focusing on high-quality organic production of it in cans, while Babe company in the U.S. has built a strong following with its fun and approachable branding.
As consumers become more conscious of environmental responsibility, the trend toward alternative packaging, such as canned and boxed production of it, are expected to continue shaping the global market.
Recently, consumer preferences have shifted toward organic and premium liquors due to growing health consciousness and a desire for sustainability and eco-friendly products. Organic liquors, which are free from additives and harmful residues, are perceived as healthier and more salubrious compared to conventional options.
According to the International Wine and Spirit Record, the premium segment is anticipated to grow by around 6% between 2022 and 2024. Notably, approximately 90% of organic grapes are produced in Europe, with Spain, France, and Italy being the largest producers of organic production of it in the worldwide.
Additionally, organic grape production has expanded in countries such as China and Turkey. Consequently, the demand for premium and organic production of it is surging as Gen Z and millennials increasingly prioritize quality over quantity, thus contributing significantly to the overall growth of the global market.
The rapid increase in the costs of raw materials, energy, and transportation has become a significant challenge in the global industry, particularly in relation to adjusting mass retail price lists where margins are already narrow. Companies are experiencing an average price increase of 10% per bottle, leading to an estimated total burden of USD 1.44 billion in additional costs. This situation has been exacerbated by soaring bills, raw material costs, and transportation expenses.
In March 2024, the International Spirit and Wine Association of India reported a significant rise in raw material costs, highlighting that industry margins have diminished due to the surge in material prices. This spike can be attributed to the state government claiming a substantial portion of about 60-80% of liquor sales.
These factors create a challenging environment for its companies, compelling them to find innovative ways to manage costs and maintain competitive pricing while ensuring product quality and availability.
The global market is witnessing a significant opportunity driven by the growing demand for low and no-alcohol grape-based alcoholic beverage. This trend aligns with the increasing health and wellness consciousness among consumers, who are opting for healthier lifestyles and reducing their alcohol consumption. In particular, the low and no-alcohol segment is experiencing robust growth, especially in Europe and North America, where health awareness is becoming a pivotal factor influencing purchasing decisions.
According to International Wine and Spirit Research, the market for no and low-alcohol beverages is projected to expand by 31% by 2024, with a vital contribution from the grape-based alcoholic beverage sector. Notable brands, including Ariel, Freixenet, and Giesen, have already launched their own versions of non-alcohol liquors to capitalize on this trend. For example, Giesen, a winery from New Zealand, introduced a no-alcohol Sauvignon Blanc that has gained popularity due to its exceptional quality and taste.
As consumers increasingly seek moderation and mindfulness in their drinking habits, the trend toward low and non-alcohol is likely to persist. This presents an exciting opportunity for brands to innovate and position themselves as providers of healthier, flavorful alternatives to traditional production.
| Study Period | 2021-2033 | CAGR | 5.5% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 4635 Billion |
| Forecast Year | 2033 | Forecast Year Market Size | USD 749.1Billion |
| Largest Market | Europe | Fastest Growing Market | North America |
Europe is a powerhouse, accounting for approximately 60% of total production and consumption. In 2022, grape-based alcoholic beverage production in Europe reached around 16.1 billion liters, with Italy and Spain contributing about 5 billion liters, collectively representing 62% of the total sold production in the region. Countries like Italy, France, and Spain have a long-standing tradition of viticulture, with renowned regions such as Bordeaux, Champagne, and Burgundy in France producing some of the world's most prestigious wines at premium prices.
The European Union plays a crucial role in maintaining this dominance through regulations and support, including subsidies, sustainability research, and export initiatives. Notably, the European Commission allocated €15 million from the agricultural reserve to aid Portuguese producers facing market disturbances.
Key trends shaping the Europe’s include:
The Asia-Pacific region, particularly China, is emerging as one of the fastest-growing markets, driven by rising middle-class incomes, urbanization, and modern lifestyles. The Chinese government has launched initiatives to boost domestic grape-based alcoholic beverage production, notably in the Ningxia area, with the establishment of the "Ningxia Wine Ecological Zone" to enhance the region's international profile.
International producers are also focusing on expanding into this promising market for both premium and mid-ranges. The shift in consumption from traditional spirits like whiskey to grape-based alcoholic beverages, especially among younger generations, is further accelerating market growth.
Key trends shaping the Asia-Pacific market include:
North America, particularly the United States, stands out as one of the largest consumers and importers of grape-based alcoholic beverages globally. According to the Observatory of Economic Complexity (OEC), major players in the U.S. market in 2023 include E&J Gallo Winery, The Wine Group, Trinchero Family Estates, Constellation Brands, and Treasury Wine Estates, as reported by Wine Business.
Its consumption patterns have notably shifted over the years, with Millennials, Gen Z, and Gen X comprising 61% of all U.S. market consumers in 2024, marking a departure from the traditional Baby Boomer demographic. Meanwhile, Canada plays a significant role in the North American grape-based alcoholic beverage landscape as a major importer. Canadian alcohol policy varies by province and territory, leading to diverse regulations regarding production, transportation, and labor.
Key trends shaping the North American market include:
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Table wines are the largest revenue contributors in the global market, particularly in key regions like Europe, North America, and Asia-Pacific. Their affordability and versatility make them appealing for daily consumption, often enjoyed alongside meals—a cultural practice in countries such as France and Italy. Table production account for over 60% of global grape-based alcoholic beverage production, with a significant portion originating in Europe.
Additionally, the trend toward premiumization is leading many producers to launch high-quality table liquors. For example, Constellation Brands has acquired premium brands like Sea Smoke and Domaine Curry, reflecting changing consumer preferences. Moreover, European regulations, such as the Protected Designation of Origin and Protected Geographical Indication, ensure the quality and authenticity of table liquors, bolstering consumer confidence.
The off-trade segment, which includes retail sales through supermarkets, hypermarkets, and liquor shops, dominates the global market. Its convenience, extensive product offerings, and competitive pricing significantly contribute to overall revenue, especially in mature markets like Europe. In France and Italy, traditional large-format retail channels are crucial for its purchases. In the U.S., major retailers such as Walmart and Costco leverage their extensive distribution networks to offer diverse selections of it at various price points.
Additionally, the growth of e-commerce has further bolstered the off-trade segment, with online grape-based alcoholic beverage purchases rising during the COVID-19 pandemic. Retail platforms like Amazon and Wine.com have experienced notable growth, facilitating consumer access to a wide ranges of it. Initiatives like the European Union Single Market have also supported off-trade sales by enabling cross-border transactions.
The global market is characterized by a diverse range of producers, each contributing to the overall market dynamics. Major players like Constellation Brands, E. & J. Gallo Winery, and Pernod Ricard dominate the landscape, leveraging extensive distribution networks and strong brand recognition. These companies benefit from economies of scale, allowing them to invest heavily in marketing and product development.
A to Z Wineworks: An Emerging Player in the Global Market
A to Z Wineworks, an Oregon-based winery, has emerged as a notable player in the global market, particularly recognized for its commitment to quality, sustainability, and affordability. As one of the largest producers in Oregon, the winery focuses on creating accessible, high-quality production that cater to a wide range of consumers.
A to Z Wineworks emphasizes the distinctive terroir of Oregon, showcasing varietals such as Pinot Noir, Pinot Gris, and Chardonnay. Their strong dedication to sustainability not only appeals to environmentally conscious consumers but also enhances their brand reputation.
Recent developments at A to Z Wineworks include:
In September 2022, A to Z Wineworks transitioned ownership to Ste. Michelle Wine Estates (SMWE), positioning SMWE as one of the leading producers of Oregon Pinot Noir. This acquisition has further solidified A to Z’s market standing. Producing 400,000 cases annually, A to Z Wineworks ranks among the country’s 40 largest wineries by volume, reflecting its substantial impact on its landscape.
As per our analyst, the global market is on a steady growth trajectory, fueled by a rising consumer preference for premium and organic options. This shift in consumer behavior, particularly among millennials and Gen Z, is driving demand for beverages that prioritize sustainability and authenticity.
Moreover, the expansion of online retailing and direct-to-consumer models is transforming the distribution landscape for grape-based alcoholic beverages, creating new opportunities for smaller wineries to penetrate global markets. As consumption of these beverages continues to rise in emerging economies and the appeal of wine tourism grows, the market is poised for consistent expansion in the coming years.
