The global wine production machinery market size was valued at USD 2,325.4 million in 2022. It is estimated to reach USD 3,338.5 million by 2031, growing at a CAGR of 4.1% during the forecast period (2023–2031).
A group of tools used in producing high-quality wines is known as wine production machinery. Wine production involves a number of physical and chemical processes that are carried out using a variety of equipment, including tanks and fermenters, crushing and pressing machinery, temperature control devices, and filtration. In addition, the equipment is chosen based on the size of the wine production and processing facility. Wine is made using raw materials like white grapes, black grapes, and other sources.
One of the key factors driving the expansion of the world market for wine production machinery is the increase in wineries. Consumer demand for wine has increased over the last couple of years. In addition, compared to baby boomers, millennials are more experimental with their tastes, perceptions, and consumption patterns regarding some alcoholic beverages, such as wine, champagne, and beer. As a result, the rise in wine consumption presents untapped opportunities for key players to establish or expand their facilities.
North America has the highest growth market, with an average annual growth rate of 5.2% due to an increase in vineyards around the continent. According to The National Association of American Wineries, there were 10,472 wineries in North America as of January 2020, up from 8,391 in 2018, with 7,762 in the U.S., 568 in Canada, and 61 in Mexico. Additionally, California was the state that produced the most wine in America in 2018, accounting for 40% to 50% of the country's total production. This is expected to drive market growth over the forecast period.
The top three wine-producing nations—Italy, Spain, and France—produce about half of the world's wine. According to Eurostat, between 35 and 40% of the wineries and vineyards in these nations are older than 30 years, and between 50 and 60 percent are between 10 and 30 years old. The average time between replacements for major equipment, such as fermenters, tanks, and refrigeration systems, is 15 to 20 years. In order to meet domestic and export demand, there are a lot of old wineries in the Europe region, which is likely to increase the replacement rate of equipment along with new installations during the forecast period. This is expected to fuel market growth for the world market for wine production machinery.
The market for wine production machinery faces many obstacles, but the high-cost issue continues to be the most important one. Equipment used in the production of wine, such as the fermenter, operates on intricate mechanisms with real-time monitoring and uses various tools, including sensors, actuators, and spargers. A fermenter also includes drainage systems, impellers, baffles, an inoculation port, temperature and pH sensors, foam controllers, and baffles for efficient operation. The fermenter equipment is extremely precise, accurate, and sophisticated, adding to the fermenters' costs because a sterile environment and ideal conditions are crucial for microbial culture.
Additionally, the market in developing nations like India and China, where consumers are price sensitive, is hampered by the price of winemaking equipment that varies according to capacity and winery size (cases). Wine producers must spend significant money on machinery and other related equipment, which will likely impede market expansion. The percentage of total investment cost by equipment category and winery size is shown in the following table.
Old concepts and new technologies are being combined creatively by winemakers to create efficient and environmentally friendly new facilities. Further, gravity feed, underground construction, and natural light use fewer resources to produce superior wines. High cost and labor savings can be attributed to solar and co-generated power. In addition, using AI, robotics, and automation in the winemaking process will likely address inefficient processes and achieve flawless and quick operation. It can provide several benefits, such as increased productivity, cost savings, and reduced human error.
Furthermore, the growing use of robotics and automation in wine production will likely give wine production machinery manufacturers many opportunities. For instance, the Golan Heights winery in northeastern Israel uses temperature controls, automated packaging, and winery motion automated equipment. This uptake of automation is probably going to open a market opportunity.
The global wine production machinery market is segmented by type.
Based on the type, the global wine production machinery market is segmented into tanks and fermenters, crushing and pressing equipment, temperature control equipment, and filtration equipment.
The temperature control equipment segment is the largest contributor to the market and is expected to exhibit a CAGR of 3.3% over the forecast period. The heating or cooling systems are controlled by temperature control equipment. Temperature sensors are installed in the heated area or system of the controller to perform this control. In order to produce high-quality wine, the right thermal conditions are needed. Wine production is significantly impacted by refrigeration. It is essential for storing grapes after harvest, for malolactic fermentation, stabilizing tartaric acid, purification, and clarification.
In order to increase the alcohol content and quality of wine, the grapes used in the process are kept in refrigerated storage. Temperature control equipment is installed inside fermenters to maintain fruit aroma and other volatile aromatics, maintaining a fuller mouth feel. This lowers the temperature. Various temperature control devices are used to regulate temperature with varying efficiency and effectiveness. Jacketed vessels, air conditioning, and temperature conditioning can all be used to control it.
Europe Dominates the Global Market
Based on region, the global wine production machinery market is divided into North America, Europe, Asia-Pacific, and LAMEA.
Europe is the most significant global wine production machinery market shareholder and is anticipated to exhibit a CAGR of 3.9% during the forecast period. Europe currently dominates the world market for wine production equipment and is expected to continue to do so during the forecast period. Major nations such as Germany, the U.K., France, Italy, Spain, and the rest of Europe are considered when analyzing the market. In 2019, Europe held 61.65% of the global market for wine production machinery. This can be attributed to rising wine production and consumption in most European nations, including France, Germany, Italy, and the United Kingdom. Additionally, increasing wine consumption may encourage winery growers to expand their production facilities, propelling the wine production machinery market.
North America is anticipated to exhibit a CAGR of 5.1% over the forecast period. North America is expected to gain significant traction in the global wine production machinery market over the forecast period. An increase in winery facilities in important nations like the United States, Canada, and Mexico primarily causes it. Three significant countries—the United States, Canada, and Mexico—are considered when analyzing the North American market. Due to the presence of several developed and wealthy nations, including the United States, Canada, Mexico, and others, North America is expected to experience a surge in demand for wine production machinery. In addition, growing manufacturing production and industrial development in the North American region have helped business leaders establish or expand their enterprises, which is likely to support the expansion of the market for wine production machinery.
Asia-Pacific will likely influence the demand for wine production equipment over the forecast period. The existence of economies like China, India, Australia, and Japan is mainly responsible for this. The region held an 8.20% market share of the world's wine production machinery in 2019 and is anticipated to expand sustainably over the coming years. This region's market expansion can be attributed to its large population, rising disposable incomes, increasing demand for high-end wines, and expanding westernization.
Brazil, South Africa, Chile, Argentina, and the rest of LAMEA are studied. It had a 13.48% market share of the world's wine production machinery in 2019 and is predicted to grow substantially over the next few years. Due to a lack of key players with modern manufacturing facilities and skilled workers, the wine production machinery market in LAMEA is still in its infancy. LAMEA is expected to hold a sizable market share in the global market for wine production machinery due to rising disposable income and increased awareness of the benefits of wine drinking.
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