The red wine market size has grown steadily in recent years. It will grow from $106.52 Bn in 2023 to $111.84 in 2024 at a compound annual growth rate (CAGR) of 5.0%. The red wine market size is expected to see strong growth in the next few years. It will grow to $136.77 in 2028 at a compound annual growth rate (CAGR) of 5.2%.
The red wine market size is expected to see strong growth in the next few years
The growth observed in the historical period can be attributed to cultural and traditional influences, the expansion of wine tourism, evolving consumer preferences, the increasing popularity of wine as a social drink, and the association of wine with perceived health benefits.
The anticipated growth in the forecast period can be attributed to rising disposable income and greater urbanization, an increasing proportion of millennials in the consumer base, changing preferences and wider acceptance of alcoholic beverages, shifts in global demand influenced by climate change, and the growth of online sales and direct-to-consumer channels. Key trends expected in the forecast period encompass the premiumization of wine, a focus on natural and minimalist winemaking approaches, the integration of technology and wine apps, an emphasis on wine and food pairing experiences, and the exploration of alternative packaging options.
The red wine market is poised for growth, propelled by the increasing health awareness among consumers. In the current landscape, healthy eating has become a prevailing trend, with consumers seeking foods and beverages that align with evolving health and wellness, ethical, and sustainability considerations.
Red wine, known for its potent plant compounds, is associated with various health benefits, including inflammation reduction, decreased cancer risk, and enhanced longevity. The alcohol and antioxidants present in red wine contribute to preventing coronary artery disease. Notably, in August 2023, Koninklijke DSM N.V. reported that 60% of global consumers are now more health-conscious, prioritizing healthy lifestyles to prevent health issues in response to the pandemic.
Additionally, a Food Insight report from July 2022 revealed that 52% of survey participants adhere to specific diets or eating patterns, reflecting a substantial increase from 39% in 2021. Consequently, the heightened health awareness among consumers is a driving force behind the growth of the red wine market.
The red wine market is set to experience a boost due to rising disposable incomes. With disposable income representing the funds available to individuals or households after tax deductions, increased incomes often translate into higher spending on premium and luxury products, including red wine.
This trend is particularly favored by consumers with greater financial resources. In Japan, for example, the Statistics Bureau reported an increase in disposable personal income from $2,402 in May 2022 to $3,058 in August. Similarly, in the United States, the U.S. Bureau of Economic Analysis noted an uptick in disposable personal income from $18,481.16 billion in May 2022 to $18,604.35 billion in June. The growth in disposable incomes is a significant driver propelling the red wine market.
A prominent trend in the red wine market is the growing popularity of organic products. Organic wine, certified by government standards, adheres to stringent criteria covering pesticide usage, land management, and storage. Gary Barlow, a Spanish winemaker, introduced the Gary Barlow Organic collection in October 2021, featuring red and white wines crafted from grapes grown in certified organic fields in Castilla. These grapes are cultivated using old, low-yielding bush vines and dry-farmed practices, exemplifying the rise in demand for organic wine products.
Major players in the red wine market are actively pursuing strategic partnerships and collaborations to enhance production. Such collaborations involve companies leveraging each other’s strengths and resources for mutual benefits and success. In June 2023, Shelton Vineyards, a U.S.-based winery, joined forces with Richard Lee Petty, a retired American stock car racing driver, to introduce a new red wine and unveil a premium red wine blend labeled Icon. This collaboration unites two North Carolina families renowned for their excellence and craftsmanship.
North America was the largest region in the red wine market in 2023. Asia-Pacific is expected to be the fastest-growing region in the red wine market share during the forecast period. The regions covered in the red wine market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.