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Slow decline of wine volume sales set to continue, IWSR says
The wine category will continue to fight off ongoing challenges in 2023, according to IWSR, with the long-term trend of slowly-declining volumes in many markets expected to continue.
IWSR analysis shows that challenges persist for the wine category, as economic uncertainties lead wine consumers in many markets to cut back on discretionary spending, especially in the on-trade.
The slow decline of the wine category is felt on a global scale, with no signs of that changing imminently. All drinks categories bar RTDs experienced a drop in sales during 2020 due to the Covid-19 pandemic. Spirits continue to bounce back and beer is returning to favour in developing markets, IWSR analysis shows.
However, wine’s long-term downward trajectory has continued. Wine volumes for H1 2021-2022 were down 5%. Brazil is currently the only country in the top 20 wine markets globally which is drinking more wine now than it did in 2017.
The number of adults who are classified as regular wine drinkers is also continuing to fall in many core markets. Across 20 key markets, still wine volumes were down -4% in the first half of 2022 versus H1 2021.
However, the super-premium segment saw growth in this period, indicating a shift towards premiumisation in the wine category.
In 2021 volumes of the global market for still wine declined by 2%, but retail value grew by 5%. Sparkling wine enjoyed 9% growth in volume terms in 2021, while value grew by a fifth (20%), reflecting the shift towards premium products in both still and sparkling wines.
Sparkling wine is indeed set for a brighter future than still; in the first half of 2022, volumes grew for all price segments except for the value price band. The total sparkling category grew 3% in H1 2022 versus H1 2021 across key markets.
Regular wine drinker numbers have also bounced back post-pandemic, driven by the return of some younger adult consumers to the category and the reopening of the on-trade, suggesting the future is not all gloomy for wine.