The champagne market is capturing a valuation of USD 7.3 billion in 2023 and is predicted to reach USD 11.9 billion by 2033. The market is registering a CAGR of 5% during the forecast period.
What are the Trends Driving the Global Market?
The growing culture of nightlife and peer approval of drinking habits are expected to drive the demand for champagne. Traditionally champagne was consumed while celebrating milestones or celebrating shared success.
Rising consumption of champagne during casual meetings, albeit in small quantities, is expected to boost the overall sales of champagne. Due to globalization, people travel for work and settle in different parts of the world.
They are trying to follow the customs of different cultures they have become more accepting of different religious practices. It has considerably reduced the taboo- attached to the consumption of alcohol in some countries. It is expected to influence the demand for champagne markets globally.
Strict regulations on using specific grape varieties are expected to eradicate low-quality champagne production. Such as Pinot Noir, Chardonnay, Pinot Meunier, Pinot Blanc, and Pinot Gris and on processes like Guyot, Royat, Chablis, and Vallée de la Marne. It is expected to provide manufacturing guidelines to manufacturers. This, in turn, may guarantee that consumers are served superior quality drinks and increase sales of champagnes in regional markets.
Chief Countries are Driving the Global Market in Various Ways:
Key brands focus on branding and adverting champagne brands, often portraying them as drinks for royalties. As a result, the elite class is ready to surge to experience the grandeur. The development of wine cellars and wine testing shows is expected to increase consumer awareness and demand for the consumption of champagne globally.
France, the chief exporter, recorded a drop of 90% in the volume of bottles shipped due to travel restrictions. But as the economy recovered from the shock of the pandemic, demand for champagne in key cities like the United States, France, Australia, and the United Kingdom skyrocketed.
The demand for champagne is expected to surge during the assessment period due to consumer willingness to spend on good quality wine. Few elite consumers may substitute the pleasure of traveling and high-end dining for consuming luxury champagne from the safety of their house.
But the key concern of manufacturers is the rising ocean freight chargers, which are expected to increase consumer prices. It may discourage the export of champagnes across international boundaries across countries like China, Japan, New Zealand, Australia, and the United States.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 5% |
| Market Valuation (2023) | USD 7.3 billion |
| Market Valuation (2033) | USD 11.9 billion |
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Producing champagne is an elaborate process. At first, grapes are pressed and poured into a tank for the first fermentation. This results in an acidic solution combined with Pinot Noir, Pinot Blanc, OR Chardonnay to create a basic blend.
The second fermentation mixture of yeast and sugar is added and sealed in a cool place. This fermentation leads to the formation of alcohol and carbon dioxide, which gives it sparkles. Producing is expensive and takes a long time. Key players are investing in developing technologies to produce champagne to overcome these challenges chemically. Easy availability is anticipated to increase the demand for champagne in the coming years.
Companies are investing heavily in branding and social media advertising. To educate consumers regarding ingredients and manufacturing processes to attract and engage with them. They are developing innovative packaging, labeling, and organizing elaborate product launches for better visibility. The rising food and tourism industry is expected to impact the sale of champagnes even further.
The market grew at a CAGR of 2% between 2018 and 2021. The market captured a valuation of USD 6.4 billion in 2018 and USD 7.0 billion in 2022. The rising investment in research and developmental activities by key players fueled the global market during this time frame.
Consumption of champagne is for your heart. Champagne made specifically from red and white grapes contains antioxidants that avert damage to blood vessels, reduce bad cholesterol and avoid the formation of blood clots.
It is expected to lower the risk of heat-related illnesses and strokes. A rise in awareness regarding the benefits of consuming champagne for health is expected to propel the demand for champagne in the market.
Economically Priced Champagne Accounted for Half of the Sales
By price point, economically priced champagne accounted for a 50% share of total revenue generated by the market globally. Rising middle-class and upper-middle consumers, due to the availability of jobs due to globalization, are expected to penetrate the global market in developing economies. An increase in the spending capacity of consumers to purchase champagnes on various occasions is anticipated to contribute to revenue generation.
Online Channels Emerging as One-stop Solution Post Pandemic
During the pandemic, online portals acted like one-stop solutions for customers, offering multiple champagne brands of numerous flavors at one destination. Consumers easily accessed different discount offers, varying bottle sizes, and price ranges.
Key brands invested heavily in integrating artificial intelligence to provide consumers with enhanced viewing and easy purchasing experience. It allowed them to engage with consumers to better understand consumer preference for champagnes and offer product variations accordingly.
Consumers could easily purchase products with a click of a button from the safety of their houses. Consumers could buy products with a click of the bottom. As a result, an online sales channel is expected to have contributed maximum revenue to the market during the assessment year.
The online distribution channel is predicted to secure a share of 11.1% during the forecast period. Key players collaborated with different online marketplaces such as and developed their websites to offer doorstep delivery to customers.
Principal Consultant
| Countries | Market Share (2023 to 2033) |
|---|---|
| United States | 25.6% |
| Germany | 8.4% |
| Japan | 5.1% |
| Australia | 3.1% |
| China | 5.5% |
| India | 6.7% |
| United Kingdom | 4.1% |
Big Social Events Driving Champagne Sales in the United States
North America is one of the key players in the market globally. The United States experienced a quick surge in demand for Champagne as the economy started to recover. Big social events like Biden's run for presidency further pushed the sale of Champagne in regional markets.
As the countries like the United States and Canada successfully carried out a vaccination drive, the demand for Champagne surged at an increasing rate. Consumer lifestyle and willingness to spend on vintage wine brands consumer are boosting the demand for champagnes in North America.
As per FMI, the United States champagne market is capturing 25.6% of the global market.
Surging Consumer Spending Capacity Driving Indian Market
Asia Pacific is emerging as a promising champagne industry due to increased consumer spending capacity. The social acceptance of consuming alcohol influence the drinking culture in a country. As youngsters in countries like India and China are open to trying new cuisines and beverages, the demand for champagne rises.
Presently champagnes are a celebratory drink in many countries in the Asia Pacific. Still, as the acceptance of consuming alcohol during festivities grows, the demand for Champagne is expected to surge. As per FMI, the Indian Champagne market secures a share of 6.7% in the global market during the forecast period.
France to Continue Exhibiting Strong Growth as Leading Champagne Producer
There is a shift in the consumption of alcohol in developed countries like France and the United Kingdom. France produces about 80% of Champagne globally with its classic ingredients and procedures. As people try to teach a healthy lifestyle, they prefer beverages with low alcohol content.
Many manufacturers have developed natural flavors like fruity, candy, and nutty to cater to this demand. As drinking is a part of the lifestyle and people often drink during meetups, brands that develop beverages with low-alcohol content and ingredients that are beneficial for health are expected to stand out among the competition.
Key companies are entering into previously uncharted categories to widen their product portfolios. In a few cases, they have revisited existing products which could decline sales due to consumer preference changes. It is expected to blur the lines between consumer requirements and products available in the market.
Another prevalent trend in the global market is consumer preference for sustainable packaging. Consumers are more sensitive to adverse impacts on the environment and choose brands that follow sustainable practices throughout their supply chain.
The key players adopt various marketing strategies to upsurge the global market are mergers, acquisitions, collaboration, partnerships, and product launches. These players are expanding their reach through e-commerce to increase their sales volume.
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Recent Developments in the Global Market are:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Price Range, Sales Channel, Region |
| Key Companies Profiled | Laurent Perrier; Centre Vinicole - Champagne Nicolas Feuillatte; Louis Vuitton SE; Taittinger; Pernod Ricard; LANSON-BCC; Thiénot Bordeaux-Champagnes; Piper-Heidsieck, Pommery; Veuve Clicquot Ponsardin |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global champagne market is forecasted to develop at an impressive 5% CAGR until 2033.
The total demand for champagne in 2023, in terms of value, to be around USD 7.3 billion.
Growing use of histopathology technology with rising cases of cancer worldwide.
The economically priced champagne segment generated almost 50% of the total revenue in 2022.
The United States is expected to drive the market with nearly 25.6% of the global market share.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Price Range 5.1. Economy 5.2. Mid-range 5.3. Luxury 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 6.1. Offline Sales Channel 6.1.1. Supermarkets/Hypermarkets 6.1.2. Departmental Stores 6.1.3. Convenience Store 6.1.4. Other Sales Channel 6.2. Online Sales Channel 6.2.1. Company Website 6.2.2. E-commerce Platform 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Laurent Perrier 15.2. Centre Vinicole - Nicolas Feuillatte 15.3. Louis Vuitton SE 15.4. Taittinger 15.5. Pernod Ricard 15.6. LANSON-BCC 15.7. Thiénot Bordeaux-Champagnes 15.8. Piper-Heidsieck, Pommery 15.9. Veuve Clicquot Ponsardin 15.10. Moët & Chandon 16. Assumptions & Acronyms Used 17. Research Methodology
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Champagne Market
