The red wine market size was valued at $182.0 billion in 2020, and is projected reach $278.5 billion by 2028, registering a CAGR of 5.4% from 2021 to 2028. The cabernet sauvignon wine segment led in terms of the red wine market share in 2020, and is expected to retain its dominance during the forecast period.
Red wine is produced by fermenting the dark colored grapes and the color of the red wine varies from light to dark depending over the acid present in the wine. The older the wine the darker the color, this occurs due to the reaction between the molecules present in the wine with aging. Much of the red-wine production process; therefore, involves extraction of color and flavor components from the grape skin. It is a delicacy around the world.
Lucrative packaging in terms of wine includes color, shape, and packaging of the red wine container. The key red wine market players are investing into packaging and labeling to get distinctiveness and centrality in their products. Moreover, the key players are coming up with new packaging styles which are handy and attractive. Likewise, in Australia, some market players introduced red wine packaging in can and are selling their wines in 250 ml cans with ring-pull tabs. In addition, the cans are made of aluminum and have a shelf life of five years, and are convenient for single or two-glass servings. Therefore, the packaging is the key attracting factor which is pulling the consumers to try or purchase different red wine options available in the red wine market. Also, rise in awareness and acceptance toward recycling of used beverage containers among consumers is fueling the need for lucrative packaging of red wines. These factors are propelling high demand for red wine majorly across the regions of Western Europe and North America red wine markets.
Nevertheless, the red wine industry faces multiple challenges including but not limited to counterfeiting, adulteration, and deception. Adulteration of red wine results in a big loss to the key players as there is a large number of counterfeited wines in the red wine market. In China, approximately 50% of the foreign wines were found to be fake. Also, it was estimated that 70% of Château Lafite Rothschild bottles sold in China were fake and 60% of the wines sold in China as French wines were fake, which shows that wine counterfeiting is one of the major trends in the Chinese market, which is one of the biggest red wine markets of the world. Furthermore, counterfeiting of established brands often tarnishes the brand image and brand loyalty; such malpractices challenges the market expansion of leading players operating in the market.
The red wine market is segmented on the basis of product type, pricing, distribution channel, and region. By product type, the market is categorized into cabernet sauvignon wine, merlot wine, syrah/shiraz wine, and others. By pricing, the market is divided into mass and premium. By distribution channel, the market is categorized into on-trade and off-trade. Region wise the market is categorized into North America (U.S., Canada and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia, Portugal. and rest of Europe), Asia-Pacific (China, India, Japan, and rest of Asia-Pacific) and LAMEA (Brazil, Argentina, South Africa, and rest of LAMEA).
By Product Type
Merlotsegment would exhibit the highest CAGR of7.4% during 2021-2028.
On the basis of product type, the global market is categorized into cabernet sauvignon wine, merlot wine, syrah/shiraz wine, and others. In 2020, the cabernet sauvignon wine segment accounted for the highest market share owing to its richness in flavor and tannins, which is good for brain and also it fights inflammation.
By Pricing
Premium segment would exhibit the highest CAGR of 6.8% during 2021-2028.
On the basis of pricing, the red wine market is bifurcated into mass and premium. The mass segment leads in terms of red wine market share and is contributing to more than half of the red wine revenue. However, the premium segment is expected to be the fastest growing segment during the forecast period.
By Distribution Channel
On-Trade segment would exhibit the highest CAGR of 6.0% during 2021-2028.
On the basis of distribution channel, the market is classified into on-trade and off-trade. The off-trade segment is dominating the market. However, the on-trade segment is expected to grow with the highest CAGR during the forecast period.
By Region
Asia Pacific region would exhibit the highest CAGR of 7.0% during 2021-2028.
Some of the major players profiled in the red wine market analysis include The Carlyle Group, Brown-Forman, Campari Group, Castel Winery Plc., Caviro sca, Constellation Brands, Inc., Rémy Cointreau, The Wine Group, Treasury Wine Estates, and Viña Concha y Toro.
COVID-19 impact analysis
- The on-trade segment of the red wine market was impacted severely due to the pandemic owing to the closure of hotels and restaurants across the globe in an attempt to prevent the spread of coronavirus.
- Manufacturers are comprehending strategies to revive from the current situation by means of reshaping their sales channels as well as product innovation.
- The duration of the virus outbreak remains a key factor in assessing the overall impact of the pandemic. However, the global red wine industry for food service segment is expected to stabilize after 2021.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging red wine market trends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the current trends and future estimations that help evaluate the prevailing red wine market opportunities in the market.
- The red wine market forecast is offered along with information related to key drivers, restraints, and opportunities.
- The market analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential and niche segments or regions exhibiting favorable red wine market growth.
Key Market Segments
By Type
- Cabernet Sauvignon wine
- Merlot wine
- Syrah/ Shiraz
- Others
By Pricing
- Mass
- Premium
By Distribution Channel
- On-trade
- Off-trade
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Portugal
- Rest of Europe
- Asia-Pacific
- India
- China
- Japan
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- South Africa
- Rest of LAMEA
Red Wine Market Report Highlights
| Aspects | Details |
 By PRODUCT TYPE |
|
 By PRICING |
|
 By DISTRIBUTION CHANNEL |
|
 By Region |
|
 Key Market Players | VIÑA CONCHA Y TORO SA, REMY COINTREAU SA, CONSTELLATION BRANDS, INC., THE WINE GROUP, THE CARLYLE GROUP, CASTEL WINERY PLC., CAVIRO SCA, THE BROWN–FORMAN CORPORATION, CAMPRI GROUP, TREASURY WINE ESTATES LIMITED |
Analyst Review
In view of CXO, mass produced red wines are highly prevalent in developed countries of the Asia-Pacific region such as India however, the premium red wine segment has seen a surge in demand from the past half decade. In addition, urbanization, rising disposable income, and growth in middle class population has positively impact the premium red wine market. With growing number of pubs, bars, and breweries serving alcoholic beverages, premium red wine are driving the market expansion in both developed and developing economies. CXO further added, with increased awareness and consciousness, consumers now a days are scrutinizing food as well as beverages labels these days, with wines being no exception. Clean label, organic, natural, no additives, GMO free alcohol including red wine have been successfully launched in the market. For instance, Santa Julia Organic have launched organic red wine in malbec and cabernet catergory. With more players entering into organic market the market for organic red wine likely to gain high traction with new flavours and offerings to lure consumers. Counterfeiting and adulteration of red wines negatively impacts the market expansion. High extent of counterfeiting can be witnessed in developing countries such as India and China. The counterfeiting were as high as 50% for foreign liquors in some provinces of China. Counterfeiting negatively impacts the brand image and overall market growth thus act as a major challenge for engagged stakeholders.
Red wine market is estimated to reach $278.5 billion by 2028.
The CAGR of red wine market is 5.4%
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The forecast period in the market report is 2021-2028.
The red wine market is segmented on the basis of product type, pricing, distribution channel, and region.
top companies in the red wine market analysis include The Carlyle Group, Brown-Forman, Campari Group, Castel Winery Plc.
The cabernet sauvignon wine segment holds the maximum market share
Lucrative packaging is a key trend in the market report.
The on-trade segment of the red wine market was impacted severely due to the pandemic owing to the closure of hotels and restaurants across the globe
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