The wine industry has shown strong value growth over the review period covered by this Key Note Market Report Plus. Although this is partly due to rises in the duty payable on alcohol, it also reflects the robust nature of this well-established industry. While sales of certain lines and sectors within the overall industry have been dampened by recent social and economic trends, other sectors have been displaying solid growth, including the rosé and sparkling wine categories. Sales of these lines have buoyed up the overall market during these recent difficult times.
Sales of slightly more expensive bottles — those priced between £5 and £10 — have also been increasing. While this has been at the expense of £5 and under options, this should be positive for the industry overall. Key Note expects a shift away from the cheapest bottles and predicts lower volume sales and higher value sales, as consumers opt for quality over quantity.
The industry is extremely well established, robust and flexible, and the vast range of products on offer means there is a product for every would-be consumer, every occasion and every budget. Although the market may be reaching saturation, Key Note nevertheless expects more shelf space to be given to wines from the People’s Republic of China (PRC), from UK producers, and from other New World producer countries.
The wine market does face many challenges. Regular tax increases and the effect of the recession on consumers’...