Red Wine Market Size
The Global Red Wine Market reached USD 95.2 billion in 2022 and is expected to reach USD 142.8 billion by 2030 and is expected to grow with a CAGR of 5.2% during the forecast period 2024-2031. Red wine is made from dark-colored grape varieties. The color of the wine can range from intense violet, typical of young wines, through to brick red for mature wines and brown for older red wines.
The juice from most purple grapes is greenish-white, the red color coming from anthocyanin pigments present in the skin of the grape. Much of the red wine production process involves the extraction of color and flavor components from the grape skin. The first step in red wine production, after picking, involves the physical processing of the grapes. Hand-picked or machine-harvested grapes are usually tipped into a receival bin when they arrive at the winery and conveyed by a screw mechanism to the grape-processing equipment.
Red wine consumption has been steadily growing worldwide, driven by rising consumer preferences for wine, health benefits associated with moderate red wine consumption, and the popularity of wine culture. For instance, the world’s wine consumption in 2020 was 234 million hectolitres (Mhl) according to OIV estimates.
Market Summary
| Metrics | Details |
| CAGR | 5.2% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Distribution Channel, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Consumers' Increasing Interest in Red Wine is Driving the Market
Red wine consumption has been on the rise globally, indicating increasing consumer interest. According to the International Organisation of Vine and Wine (OIV), global wine consumption reached 232 million hectoliters in 2022, with red wine accounting for a significant portion of the overall consumption.
Red wine has consistently remained a popular choice among consumers. In a survey conducted by Wine Intelligence in 2020, 35% of regular wine drinkers worldwide reported red wine as their favorite type of wine, reflecting the sustained interest and preference for red wines. The perceived health benefits associated with moderate red wine consumption have contributed to its popularity. Studies highlighting the potential cardiovascular benefits and antioxidant properties of red wine have attracted health-conscious consumers. For instance, a study published in the journal Circulation Research found that moderate red wine consumption was associated with a reduced risk of cardiovascular disease.
Health Benefits and Wine Culture is Expected to Foster the Red Wine Market
The association between red wine consumption and potential health benefits, particularly cardiovascular benefits, has contributed to its popularity. According to a study published in the journal Circulation Research, moderate red wine consumption was associated with a reduced risk of cardiovascular disease.
Numerous research suggests that red wine contains antioxidants, such as resveratrol, which may have positive effects on human health. For instance, a study published in the journal Molecules found that resveratrol exhibits various health-promoting properties, including antioxidant, anti-inflammatory, and anti-cancer effects.
Competition from Other Alcoholic Beverages is Hindering the Red Wine Market
Beer is a widely consumed alcoholic beverage globally and often competes with red wine for consumer preferences. According to data from the Kirin Holdings Company, global beer consumption in 2021 reached around 185.6 million kiloliters, an increase of 4% year-on-year.
Spirits, including whiskey, vodka, rum, and gin, present strong competition to red wine. These beverages offer distinct flavors and serve as alternatives for consumers seeking different sensory experiences. According to data from the International Wines and Spirits Record (IWSR), global spirits consumption reached approximately 28 billion cases in 2022.
Market Segment Analysis
The global red wine market is segmented based on type, distribution channel, and region.
The Sparkling Wine Segment is Likely to Grow at a Rapid Rate
Sparkling wine has gained popularity among consumers due to its effervescence, refreshing taste, and association with celebration. Many people enjoy the experience of drinking sparkling wine and find it suitable for a variety of occasions. According to Forbes Magazine, production has increased by 57% since 2002. The world now produces 2.5 billion bottles of sparkling wine. This is just under 8% of the world's total wine production of 32.5 billion bottles.
Sparkling wine is versatile and can be paired with a wide range of foods, making it a popular choice for pairing with different cuisines. Its acidity and bubbles can complement a variety of dishes, making it a versatile option for wine enthusiasts. The sparkling wine segment has seen growth in recent years, with the emergence of new production regions outside of Champagne, such as Prosecco from Italy and Cava from Spain. These alternatives offer different flavor profiles and price points, attracting a broader consumer base.
Market Geographical Share
The North American Region Held the Largest Market Share of the Red Wine Market
North America has a strong presence in the red wine market due to its significant domestic production. Countries like the United States and Canada have well-established wine regions that produce a wide range of red wine varieties, including Cabernet Sauvignon, Merlot, Pinot Noir, and Zinfandel. For instance, a recently released Gomberg & Fredrikson report, based on government tax-paid data, shows wine dollar sales up a surprising 16.8% in 2021 over 2020. Total wine sales, including domestic and imported wine, were $78.4 billion, compared to 2019’s figure of $67.3 billion.
North America has witnessed significant growth in wine culture, with increasing consumer interest and knowledge about wine. The wine culture includes activities like wine-tasting events, wine tourism, and wine clubs, which contribute to the demand for red wines. Red wine has gained popularity in North America due to changing consumer preferences and evolving wine trends. Consumers in the region have developed a taste for red wines, driven by factors such as health benefits, food pairing opportunities, and cultural influences.
Market Companies
The major global players in the market include Castel Group, Pernod Richard, Amvyx SA, Caviro, Constellation Brands, Vina Concha y Toro SA, Accolade Wines, E & J Gallo Winery, Treasury Wine Estates, and Bacardi Limited.
COVID-19 Impact on Market
Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:
Covid-19 Impact:
The global lockdowns and restrictions imposed during the pandemic have disrupted supply chains, including the production and distribution of red wine. Wineries faced challenges in sourcing raw materials, managing logistics, and meeting production demands, which could have affected the availability of red wine in certain markets. The pandemic accelerated the adoption of e-commerce in the wine industry, including the red wine market. This shift to e-commerce provided opportunities for wineries and retailers to reach customers directly, mitigating some of the negative impacts of the pandemic.
By Type
- Still Wine
- Sparkling Wine
- Others
By Distribution Channel
- On-Trade
- Off-Trade
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Germany
- The U.K.
- France
- Italy
- Spain
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- In April 202o, Crimes, the first winery that used augmented reality to bring its labels to life, continues to disrupt the market and announced a multi-year partnership with Entertainment Icon, Snoop Dogg.
- In June 2022, Anora acquired Globus Wine, the leading wine company in Denmark, to further strengthen its position as the leading Nordic wine and spirits group.
- In June 2023, DEWAR'S Blended Scotch Whisky, the world's most-awarded blended Scotch whisky, released DEWAR'S 19-Year-Old - The Champions Edition. The limited-edition whisky is released in partnership with the 123rd U.S. Open Championship, held at The Los Angeles Country Club (LACC), June 15-18, of which DEWAR'S is the official Scotch whisky partner for the third year running.
Why Purchase the Report?
- To visualize the global red wine market segmentation based on type, distribution channel, and region and understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of red wine market-level with all segments.
- The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The global red wine market report would provide approximately 53 tables, 46 figures and 190 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
