Customized Report Service – Sparkling champagne and non-grape wine in leading markets

Trade overview

In 2022, global imports of cider, perry, mead, sake and other fermented non-grape wine beverages (HS:2206) reached a total of US$1.7 billion (340.7 million litres). This import value has been increasing at a CAGR of 3.9%, especially for rice wine, including medicated (24.8%), sake, including non-sparkling wine, n.e.s. (15.6%), beer mixtures, including non-alcoholic (11%), and fruit/vegetable, grape wine-based beverages, fortified or fermented (10.7%) between 2018 and 2022. During this time period, the largest import declines were for cider fermented, whether still or sparkling registered a decline of 12.3%, along with Cheongju (−1.1%), and apple or pear wine or fermented, fortified beverages (−69.7%).

The top global importers of cider, perry, mead, sake and other fermented non-grape wine beverages were the United States (24%), United Kingdom (14.9%), and China (6.1%), with Canada (6th largest) importing US$64 million (3.7%) in 2022. The largest categories in terms of value imports were mead, sparkling fermented mead beverages & mixtures derived from fruit or water honey (including cider, perry & water honey) at US$404.3 million, followed by beer mixtures, including non-alcoholic (US$164.2 million), sake, including non-sparkling wine, n.e.s. (US$53.5 million), cider, fermented, whether still or sparkling (US$51.2 million), fruit/vegetable, grape wine-based beverages, fortified or fermented (US$47 million), rice wine, including medicated (US$43 million), and Cheongju (US$21.5 million). Other smaller valued imports included apple or pear wine or fermented, fortified beverages, Takju, Perry, and Yakju in 2022.

Retail sales and market sizes

Global view - wine

In 2022, wine (including fortified wine and vermouth, non-grape wine, sparkling wine - champagne, still light grape & non-alcoholic wine) totaled US$173.8 billion (20,190.6 million litres) in off-trade retail sales and US$164.3 billion (5,908.5 million litres) in on-trade sales based on retailer selling price (RSP). Total off-trade value sales have been growing by a CAGR of 3.8% (2017-2022), while on-trade sales have historically declined by a CAGR of 0.2%, expected to grow by a CAGR of 6.3% and 8.3%, respectively (2022-2027).

The United States was the largest importer of cider, perry, mead, sake and other fermented (non-grape) wine beverages, importing a total of US$419.2 million (172.2 million litres) in 2022. Non-grape wine was the best performing category in 2022, with total volume sales increasing by 6% to reach 24 million litres. E&J Gallo Winery Inc. was the leading American player with a total volume share of 26% in 2022. Over the past couple of years, total volume growth in wine in the US turned to decline with near-stagnation seen in 2020, which registered a total volume sales growth of 0.3% in 2022 to reach 3.2 billion litres; set to remain stable at a CAGR of 0.3% over the forecast period. The highly educated, average wine consumer in the US is predominantly above the age of 50 and as these baby boomers reach retirement age, their spending becomes more restricted than in the past. Also, with continuous price increases due to inflation, consumption of wine is becoming more as a luxury and consumers are looking for cheaper alternatives, especially amongst younger consumers who are experimenting more with RTDs, spirits, and beer, which provide more for less.^{Footnote 1}

The United Kingdom was the 2nd largest importer of cider, perry, mead, sake and other fermented (non-grape) wine beverages, importing a total of US$259.9 million (volume not available) in 2022. Non-alcoholic wine was the best performing category in 2022, with total volume sales growing by 3% to reach 3.5 million litres. Accolade Wine Ltd. was the leading player in the UK with a total volume sales share of 11% in 2022. Total volume sales of wine recorded just 1% growth in 2022 to reach 1.3 billion litres and is set to grow at a CAGR of 0.3% over the forecast period by 2027. Off-trade retail sales in the UK experienced a marginal decline, compared to on-trade's significant rise of 19% in 2022 (2nd consecutive year of double-digit volume increase), as consumers were able to shift back to drinking within on-trade venues like social pubs and restaurants that were able to fully operate without pandemic-related restrictions. Wine registered total current value sales growth of 13% in 2022, driven by an 8% rise in off-trade growth and a 28% rise through on-trade. Value growth was mainly a result of a significant increase in the sectors average unit price in 2022, with on-trade prices being raised the most having to face increased energy costs and labour shortages.^{Footnote 2}

China was the 3rd largest importer of cider, perry, mead, sake and other fermented (non-grape) wine beverages, importing a total of US$107.2 million (17.4 million litres) in 2022. Non-alcoholic wine was the best performing category in 2022, with total volume sales still falling by 7% to land at 1.6 million litres. Zhejiang Guyue Longshan Shaoxing Wine Company Ltd. was the leading Chinese player in 2022, with a total volume share of 9%. Total volume sales fell by 12% to land at 2.9 billion litres, which is set to continue to decrease at a CAGR of 4% over the forecast period to decline to 2.4 billion litres. In light of the COVID-induced lockdowns in 2022, there was a notable reduction in the level of imports of wine within China (−US$10.5 million / −8.9%) that in turn decreased the aggregate wine supply impacting the consumption both in on/off-trade. In China, wine consumption primarily revolves around social gatherings, particularly during wedding ceremonies and business banquets, resulting in a significant reduction in demand for wine due to the imposition of lockdown policies. Albeit, Chinese traditional rice wine assumes a prominent role within the realm of the non-grape wine category. Chinese consumers are progressively enjoying emerging offerings such as osmanthus rice wine, in addition to a diverse array of non-grape libations encompassing fruit wines and mead. Sparkling wine is also, expected to grow in popularity in restaurants in China.^{Footnote 3}

In terms of Canada's performance, it was the 6th largest importer of cider, perry, mead, sake and other fermented (non-grape) wine beverages, importing a total of US$64.0 million (12.8 million litres) in 2022. The most dynamic growth and the best performing category in 2022 has been in non-alcoholic wine, with total volume Canadian sales still increasing by 21% to reach 8.8 million litres. Arterra Wines Canada Inc. and Andrew Peller Ltd. were the leading players in 2022, with a total volume share of 16.8% and 12.1%, respectively. Wine growth continued to shrink in 2022 overall by a total volume sales of 0.2% to reach 657 million litres, which is set to increase at a CAGR of 3% over the forecast period to reach 747 million litres in 2027. The on-trade sector is the main driver for growth benefitting from a surge in the number of foodservice outlets, as well as, a strong comeback of dining out after a two-year lockdown. Wines along with beer, are losing market share to the exponentially strong growth in RTDs and spirits. Albeit, some wine categories, such as sparkling wine, show growth due to increased post-pandemic socialization events, while other wine types are being replaced by other types of alcoholic beverages that offer more variety.^{Footnote 4}

Sparkling wine - champagne

In 2022, total sales of champagne were US$19.9 billion (231.1 million litres), which consisted of US$7.5 billion (155.7 million litres) in off-trade retail sales and US$12.4 billion (75.4 million litres) in on-trade sales. Off-trade sales grew the most at a CAGR of 6.0% compared to on-trade sales at a CAGR of 0.6% between 2017 and 2022. However, on-trade sales are forecast to turn around with a CAGR of 10.3% versus off-trade (5.5%) between 2022 and 2027.

The largest regions with the most total off/on-trade value sales of champagne were Western Europe (US$10.4 billion), Asia Pacific (US$3.5 billion), and North America (US$2.1 billion) in 2022. Top regions with the highest total historical growth (2017 to 2022) were Australasia (CAGR:10.8%), followed by North America (7.1%), and Eastern Europe (6.7%); while Western Europe has declined during this period at a CAGR of −0.1%.

Off-trade sales brought in the most value over on-trade sales within the following regions: Australasia (off-trade share: 57.2%), Eastern Europe (65.8%), Latin America (65%), and North America (60.9%) in 2022. Alternatively, the Asia Pacific (85.6%), MENA (74.4%), and Western Europe (63.3%) regions registered the highest sales within on-trade sales in 2022.

In 2022, leading champagne markets registering the highest total on/off-trade sales were France at US$5.9 billion (92.3 million litres), Japan at US$2.5 billion (11.2 million litres), the United States at US$1.9 billion (28.9 million litres), Australia at US$1.4 billion (16.7 million litres), and the United Kingdom at US$1.3 billion (17 million litres). Canada was the 15th largest market in terms of value sales at US$173.4 million (1.4 million litres) in 2022.

Within the top 10 markets (including Canada), those countries with larger off-trade champagne sales were the US (off-trade share: 59.1%), Australia (53.6%), the UK (58.4%), Germany (57.5%), and Canada (80.7%). Alternatively, France (on-trade share: 68.4%), Japan (93%), the UAE (90.5%), Switzerland (78.2%), Italy (79.3%), and Belgium (53%) were regions that registered the highest sales within on-trade sales.

Competitive landscape - champagne in top markets

In 2022, globally the leading companies in the champagne category were LVMH Moët Hennessy Louis Vuitton SA (brands: Moët & Chandon, Veuve Clicquot - Brut, Dom Pérignon, Krug, Mercier, Ruinart) at a global market share of 32.3% (US$6.4 billion), Pernod Ricard Groupe (brands: Mumm, Perrier-Jouët) at 6.0% (US$1.2 billion), and Vranken-Pommery Monopole SA (brands: Vranken, Pommery) at a market share of 4.5% (US$903.7 million). Private labels throughout the world registered a market share of 4.1% (US$807.2 million) in 2022.

Non-grape wine

In 2022, total sales of non-grape wine was US$26.8 billion (2,909.3 million litres), which consisted of US$12.7 billion (2,328.9 million litres) in off-trade retail sales and US$14.1 billion (580.4 million litres) in on-trade sales. Both off-trade and on-trade sales declined by 1.5% and 3.6%, respectively between 2017 and 2022. However, on-trade of non-grape wine is forecast to turn around with a CAGR of 4.0% versus off-trade (0.6%) between 2022 and 2027.

The largest regions with the most total value of off/on-trade sales of non-grape wine were Asia Pacific (US$24.5 billion), Eastern Europe (US$940.7 million), Western Europe (US$641.1 million), and North America (US$533.1 million) in 2022. Top regions with the highest total historical growth (2017-2022) were Eastern Europe (CAGR:7.1%), followed by MENA (5.2%), and Latin America (3.9%); while Asia Pacific (−3.2%) and Australasia (−1.1%) have declined sales of non-grape wine during this period.

On-trade sales of non-grape wine, generally brought in the highest value over off-trade sales, within the following regions: Asia Pacific (on-trade share: 53.9%), Australasia (84.9%), Latin America (69.9%), MENA (86.4%), North America (76.1%), and Western Europe (51.8) in 2022. Alternatively, off-trade sales were overwhelmingly higher than on-trade sales within Eastern Europe at an off-trade market share of 94% in 2022.

In 2022, leading non-grape wine markets throughout the world that registered the highest total on/off-trade sales were China (rice wine, sake) at US$16.9 billion (1,673.6 million litres), Japan (Chinese wine, fruit wine, sake, other) at US$5.7 billion (405.3 million litres), South Korea (Bokbunjaju, Cheongju, sake, Takju) at US$1.3 billion (389.1 million litres), United States (rice wine) at US$498.4 million (24.3 million litres), and Russia (apple wine, other) at US$445.0 million (100.3 million litres). Canada (sake, other) was the 19th largest market in terms of value sales at US$34.7 million (1.3 million litres) in 2022.

Within the top 10 markets (including Canada), those countries with larger on-trade non-grape wine sales were China (on-trade share: 54.1%), Japan (51.9%), South Korea (61%), United States (78.8%), Germany (61.8%), and Taiwan (63.7%). Alternatively, Russia (off-trade share: 97.4%), Poland (97%), Indonesia (83.3%), Belarus - modelled (99.8%), and Canada (62.8%) were regions that registered the highest sales within off-trade sales.

Competitive landscape - non-grape wine

In 2022, the leading global companies in the non-grape wine category were Zhejiang Guyue Longshan Shaoxing Wine Co Ltd. (brands: Guyue Longshan, Nv Er Hong, Shenyonghe) at a total market share of 9% (US$2.4 billion), Kuai Ji Shan Shaoxing Wine Co Ltd. (brands: Kuai Ji Shan, Wuzhanmao, Xitang, Tangsong) at 4.5% (US$1.2 billion), and Takara Holdings Inc. (brands: Sho Chiku Bai, Takara) at a market share of 3% (US$795.8 million). Private labels registered total non-grape wine sales of US$8.2 million in 2022.

New product launches across the world

Mintel indicated that there were 17,448 new wine drink products launched globally across grocery retailer outlets (including new variety/range extension, packaging, formulation or relaunched) between the period of January 2018 and October 16, 2023. Leading markets launching the most wine products were France (17.2%), Italy (14.3%), Spain (10.1%), Australia (6.2%), South Africa (3.9%), with Canada being the 17th largest market (0.3%) over this period.

France manufactured and introduced as many as 354 brand new products between January-October 16, 2023. Italy released 258 brand new products during this period, followed by Spain (154), Australia (80), New Zealand (31) with South Africa falling behind as the 8th largest market to introduce 27 new products. Canada released two new products in 2023, including a hydromel honey wine by Miel Nature (manufacturer: Vetrerie Venete, brand: Chou-Chou, not imported), as well as an iced tea flavoured alcoholic malt beverage by St-Loup & Cie (brand: Pepito, market: Cameroon - imported product).

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Country	2018	2019	2020	2021	2022	2023	Total
France	399	441	509	603	511	532	2,995
Italy	302	303	372	491	605	420	2,493
Spain	191	267	348	352	334	277	1,769
Australia	80	94	341	214	156	195	1,080
South Africa	106	103	140	108	109	106	672
Canada - 17th	8	9	15	7	16	4	59

Source: Mintel, 2023

Innovative launches in the 2023/2022 review period, include the world's first 'Nàdar Climate-Positive Gin' that uses peas for the base spirit, said to be more sustainable than wheat-based spirits (Germany). Japan's 'Satsuma Tsukasa Shochu' is made with the Anno Imo variety of sweet potato. South Africa has introduced an authentically handmade craft gin from Cape Town (Ugly Gin Grapefruit & Goji Gin) where the brand claims that 'you're paying for the liquid, not everything else.' Other innovative launches include the 'Fornum & Mason of Oolong WuYi Tea Vodka' said to be the first spirit of its kind in the world using highly prized tea (UK), a 'Greater Than No Sleep Gin Coffee Infused Gin' made in collaboration with Sleepy Owl Coffee using Arabica beans with notes of red cherries, salted caramel and hints of peppercorn (India). Lastly, is a 'Rio Lightly Desert Cactus Flavoured Sugar Free Hard Seltzer' that China launched as one of its first hard seltzer range.^{Footnote 5}

Leading global companies launching wine drink products (3,579) between Q4-2022 and Q4-2023 were Aldi Group (33), Marks & Spencer (33), Bacardi & Company (31), Pernod Ricard (26), Suntory (24), and Coles Group (23). Top brands over the 5-year period were Somersby (90), Martini (69), Kirkland Signature (44), M&S (38), Freixenet (38), Aldi (32),Metaxa (32), Barefoot (31), Martini L'Aperitivo (31), and Chandon (30). New brands appearing for the first time and launched within the last 6 months, included Woolworths Cape (sweet rosé) in South Africa, Vuur (green apple and strawberry non-wine aperitif) in Colombia, Nozeco Zero (orange Mimosa) in Australia and Dubourdieu (2021 pure Sauvignon blanc Bordeaux white wine) in the United States.

Top categories for wine types were available as hot beverage products (+66.7%), while declining categories were sports & energy drinks (−100%), carbonated soft drinks (−62.5%), juice drinks (−50%), and alcoholic beverages (−0.5%) between Q4-2022 and Q4-2023. New wine ingredients appearing within the last 12 months included light beer, natural Elderberry flavour, acerola powder, watermelon flavour, banana extract, artificial raspberry flavour, alpha-amylase, shine Muscat (extract), and passion fruit syrup. The fastest growing flavours in these products were passion fruit/Maracuja (+400%), berry (+300%), white peach or citrus (each by +200%), and sangria or ginger (each by +100%) between Q3-2022 and Q3-2023.

Top claims and claim combinations used most often in the last three months for wine product launches included environmentally friendly package (16.3%), ethical - recycling (14.6%), vegan/no animal ingredients (14.1%), environmental friendly products (13.9%), ethical - sustainable habitat/resources (13.4%), social media (8.4%), organic (7.1%), and premium (6%). Top growing wine claims were convenient packaging (+300%), diet/light (+300%), on-the-go (+250%), antioxidant (+125%), and time/speed (+100%) between Q3-2022 and Q3-2023. Meanwhile during the same period, declining claims by −100% were dairy free, functional - weight & muscle gain, Halal, economy, and vitamin/mineral fortified. Also, between this period top packaging types or material combinations were flexible (+14.3%), glass coloured bottle (+9.3%), plain glass bottle (−5.4%), and metal aluminum can (−33.8%).

Top sub-categories out of 17,448 wine products were wine itself (68.4%), followed by flavoured alcoholic beverages (10.3%), fortified & other wines (8%), liqueur (1.6%), brandy (1.5%), cider (1.5%), whisky (1.4%), beer (1.4%), gin (0.8%), and other spirits (0.7%). Ran separately, there were 636 new champagne products launched between January 2018 and October 17, 2023.

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• Wine: 11,941
• Flavoured alcoholic beverages: 1,802
• Fortified and other wines: 1,403
• Liqueur: 273
• Brandy: 262
• Cider: 256
• Whisky: 247
• Beer: 236
• Gin: 133
• Other spirits: 123
• Coffee: 117
• Dark rum: 116
• Carbonated soft drinks: 111
• Tea: 59
• Vodka: 56
• Beverage concentrates: 53
• Juice: 44
• Kombucha and other fermented drinks: 43
• Fruit/flavoured still drinks: 30
• Tequila: 28

Total item count: 17,448

Source: Mintel, 2023

Examples of new products

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Resources

• Euromonitor International | July 2023. Country report: Wine in China
• Euromonitor International | June 2023. Country report: Wine in Canada
• Euromonitor International | June 2023. Country report: Wine in the US
• Euromonitor International | June 2023. Country report: Wine in the United Kingdom
• Global Trade Tracker (GTT), 2023
• Kaczorowski, Mikolaj. Mintel | February 2023. A Year of Innovation in RTD, Wine & Spirits
• Mintel Global New Products Database, 2023

Customized Report Service – Sparkling champagne and non-grape wine in leading markets
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

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