Market Trends of Europe Wine Industry
This section covers the major market trends shaping the Europe Wine Market according to our research experts:
Large Vineyard Area is Likely to Drive the Market in the Region
The European countries have been extensively manufacturing wines for ages as drinks have been a regular part of the traditional meals across the region. The large area under vineyards is giving rise to the increase in wine production on a large scale. For instance, according to the International Organisation of Vine and Wine, in 2021, Spain had the largest vineyard surface area in Europe with 964,000 hectares followed by France and Italy with 798,000 hectares and 718,000 hectares respectively. Therefore, the large area under vineyards aids the greater production of wine.
Additionally, owing to the high demand, a considerable land area was converted into vineyards, especially in the countries of Spain, Italy, France, and Turkey, as their local wines gained popularity across the globe. According to the United Nations Food and Agriculture Organization, in 2021, these four countries altogether cater to about 39.7% of the global vineyard surface area. Europe holds a large proportion of the entire vineyards in the world. The manufacturers, thus, procure grapes in bulks from these vineyards to produce wine at substantial prices, attracting consumers further. Moreover, the increased production due to the large vineyard area is increasing the innovation in terms of flavor, color, and packaging customizations has led to increased sales of wine.
Rising Demand for White Wine in the Region
The rising demand for white wine is escalating the growth of the European wine market. Although red wine is preferred in most places, the preference for white wine is rising in European countries. The trend of wine consumption at home is driving the demand further which is supported by the factor that people in Europe prefer to have wine with their meals frequently. For instance, according to HM Revenue and Customs, in 2021, in the United Kingdom, 13.9 million hectoliters of wine were released for consumption by HM Revenue and Customs which increased from 13.7 million hectoliters in 2020.
The sales of organic white wine can be seen growing in the region, owing to the benefits it carries. White wine is known to help in weight loss and can also help in maintaining a healthy heart, keeping a person away from heart diseases. While many countries in the region demand white wine abundantly, the demand is certainly higher in Poland. For instance, according to Krajowy Ośrodek Wsparcia Rolnictwa, in the 2020/2021 season, the country produced 9398.38 hectoliters of white wine, which was an increase of about 800 hectoliters compared to the previous season. Additionally, with the rising preference for the product, companies are expanding their presence in different countries throughout the region. For instance, in 2021, the Italian super white wine was launched in the United Kingdom. This wine hails from Collio DOC in Italy and is made of Friulano grapes. Such developments in the region are expected to boost the sales of the whole market during the forecast period.
