UK retail market for wine in 2015: the facts

We bring you a detailed analysis of wine sales trends in the UK off-trade during 2015, charting the rise of Merlot and Sauvignon, and fall of rosé.

As the figures over the following pages highlight, UK retail sales for still wine have fallen over the 12 month period to the end of January this year, but only by 1% in volume and value, suggesting that the market is stabilising.

Notably, the biggest declines in sales by volume have occurred in the £5-6 price band, while growth appears to be occurring at opposite ends of the market: wine priced below £3 and above £8.

In terms of colour, both red and white wine have experienced a 1% decrease in volume sales during the course of 2015, while rosé has dropped by 7% in both volume and value, probably a sign that consumers are moving away from the blush style pink wines that dominate this sector.

As for grape varieties, falling sales of Pinot Grigio and Chardonnay account for the overall decline in white wine sales, although Sauvignon Blanc continues to increase in sales, rising by 9% in volume and value during 2015, increasing its lead as the UK retail sector’s best-selling grape.

Among the red grapes, it’s Merlot that leads in sales, while also enjoying a 9% increase in volume and value during the past 12 months to 30 January. Following this upward trend is second best-selling red variety, Shiraz, while Cabernet Sauvignon, in contrast, has suffered a slight decline.

The following statistics concern the still wine market, but it’s worth nothing that sparkling wine retail sales are continuing the grow, with sales up 21% in volume to total 779 million hectolitres (hl) and 22% in value to £709m, representing an average price of £9.10 (all figures are from Nielsen and represent the last 12 months to 30 January 2016).

Meanwhile, Champagne (which is treated as a separate category from ‘sparkling’) is also enjoying growth, although the rate is slower, with an increase of 5% in volume to 127m hl and 4% in value to £332m over the same period. However, the top end French fizz has suffered a 1% decline in average price, although this almost three times the price of the sparkling wine category – Champagne’s average retail price in the UK is £26.17.

Click here for a detailed look at the market for sparkling wines, and view the following pages for the facts regarding the UK retail market for still wines.

1. General trends

UK off-trade wine sales over the last 12 months to 30 January 2016, according to Nielsen:

• Still wine accounted for 7.451 million hectolitres (hl) (or 5.588 billion bottles), which represented a decline of 1% compared to the same period the previous year.
• In terms of value, this totalled £5.350 million, which was also a decline of 1%.
• The average price of wine sold in UK retailers was £7.18 per litre (or £5.40 per bottle) – which was stable, representing a change of 0%.

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2. Price bands

In terms of volume sales, the market is polarising, with growth occurring at the cheapest end of the market and also at higher price points, particularly in the £9-10 price band. (The bands below represent prices per litre).

Less than £3: 157,000 hl (+15%)
£3-4: 944,000 hl (-1%)
£4-5: 2.453m hl (+1%)
£5-6: 1.653m hl (-10%)
£6-7: 781,000 hl (+3%)
£7-8: 372,000 hl (0%)
£8-9: 171,000 hl (2%)
£9-10: 104,000 hl (+3%)
£10-11: 131,000 hl (+2%)

3. Colour

Both the red and white wine sectors are in slow decline, while rosé is falling at a faster rate, although it is from a smaller base, representing just 11% of the market.

White: 47% of the off-trade with 3.495m hl (-1%) worth £2.489m (-1%)
Red: 42% of the off-trade with 3.123m hl (-1%) worth £2.295m (0%)
Rosé: 11% of the off-trade with 0.827m hl (-7%) worth £0.562m (-7%)

4. Varieties

Red wine – best selling varieties:

Merlot: 454,000 hl (+9%); £315m (+8%); average price of £5.21 per 75cl
Shiraz: 414,000 hl (+9%); £290m (+9%); average price of £5.26 per 75cl
Tempranillo: 248,000 hl (+3%); £213m (+6%); average price of £6.45 per 75cl
Cabernet Sauvignon: 245,000 hl (-2%); £179m (-3%); average price of £5.49 per 75cl

White wine – best selling varieties:

Sauvignon Blanc: 826,000 hl (+9%); £661m (+9%); average price £6.00 per 75cl
Pinot Grigio: 609,000 hl (+1%); £420m (-1%); average price £5.17 per 75cl
Chardonnay: 601,000 hl (-2%); £419m (-2%); average price £5.23 per 75cl