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Domestic growth and premium demand drive UK wine market

Sustainability-focused consumers and expanding English wine production are driving steady growth in the UK wine market, according to new data.

The UK wine market was valued at US$26.3 billion in 2024 and is forecast to reach US$36.3 billion by 2033, growing at a compound annual growth rate (CAGR) of 3.65% between 2025 and 2033, according to new figures from IMARC Group.

The study points to increased domestic production, government support, higher disposable incomes and a growing focus on sustainability and quality as the main forces shaping the market. Wine remains firmly embedded in British drinking culture, with 67% of UK adults drinking wine, helping to underpin long-term demand.

Premium demand and economic impact

Rising consumer spending power is pushing demand towards higher-quality, often organic wines, as shoppers increasingly seek authenticity, uniqueness and environmental credentials. This premium shift is already having a measurable economic impact.

According to the Wine and Spirit Trade Association, the wine and spirits sector generated more than £76 billion in economic activity in 2022, up from £49 billion five years earlier. Separate research by the Centre for Economics and Business Research found the sector contributed over £22 billion in Gross Value Added (GVA) to the UK economy last year.

The UK remains the world’s second-largest wine importer, bringing in around 1.7 billion bottles in 2022, while also holding its position as the largest global exporter of spirits, shipping approximately 1.8 billion bottles overseas in the same year.

English wine production gathers momentum

Domestic production continues to accelerate, particularly in Kent and Sussex. Government records show that the registration of 87 new vineyards in 2023 took the total number of UK vineyards beyond 1,000 for the first time, according to Wines of Great Britain.

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The number of wineries increased from 209 to 221, while the total vineyard area reached 4,209 hectares, marking a 123% increase over the past decade. Sales of English and Welsh wine are rising steadily as new vineyards come on stream, with sales up 10% last year to 8.8 million bottles.

Sparkling wine remains a standout performer. Sales volumes have increased by 187% since 2018, rising from 2.2 million bottles to 6.2 million bottles in 2023. Still wine sales have also grown sharply, up 117% from 1.2 million bottles to 2.6 million bottles over the same period.

Innovation, formats and sustainability

Product innovation is playing a central role in keeping the category relevant, with growing interest in canned wines, low-alcohol options and alternative packaging formats. Sustainability is a key driver behind this shift.

In April 2025, Aldi launched the UK’s first supermarket own-label wine in an aluminium bottle, in partnership with Broadland Drinks. The bottle is 75% lighter than glass, fully recyclable and designed to cut transport emissions.

A month earlier, Vinca Wine introduced what it describes as the UK’s first 100% recycled aluminium wine bottle, featuring two organic wines. The company said the format delivers a 47% lower carbon footprint than traditional packaging.

English producers are also expanding their reach through partnerships and investment. In August 2024, Shepherd Neame teamed up with Balfour Winery to launch English Garden, a white wine and rosé made from Kent-grown grapes. Meanwhile, Chapel Down instead intends to optimise its existing winemaking assets.

With strong consumption levels, rising premium demand and continued innovation across production and packaging, IMARC’s data suggests the UK wine market is set for steady, long-term growth across both domestic and imported categories.

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