by The global Champagne Market is estimated to be valued at US$ 7.67 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Champagne is a sparkling wine produced from specific grape varieties and in particular growing regions of France following strict production methods. The wine undergoes a second fermentation in the bottle which gives it its signature bubbles and complexity. Champagne is popular as an alcoholic beverage for social gatherings such as weddings, celebrations and parties owing to its festive image and prestige branding. The market offers a variety of products ranging from entry-level non-vintage to vintage and prestige cuvees catering to different consumer segments and price points. The social and celebratory consumption of Champagne supports the high-end premium image associated with the product.
Market key trends:
Demand from millennials driving new product formats – The millennial demographic is driving growth in the Champagne market through openness to try new flavor profiles and product formats. Producers are launching products targeted at younger consumers such as canned and bottled lower ABV Rose Champagnes. The trend of premiumization of rose continues with higher quality and pricier products coming to the market.
Sustainability practices gaining prominence – Consumers are increasingly concerned about environmental and social impact of the products they buy. Champagne producers are adopting sustainable winegrowing practices such as organic and biodynamic viticulture to respond to this demand. Certifications help brands differentiate and connect with conscious consumers. There is also a shift towards lighter weight and recyclable packaging materials to reduce carbon footprint.
E-commerce fueling global accessibility – Restrictions due to the pandemic increased online shopping behavior globally. Champagne brands successfully leveraged e-commerce and DTC platforms to sell products directly to consumers internationally. This opens new untapped markets for producers and gives consumers wider varietal choice and information. E-commerce is poised to continue influencing sales and the global brand outreach of Champagne labels.
Porter’s Analysis
- Threat of new entrants: The champagne industry requires significant capital investments in vineyards, wine production facilities and bottling lines. Strong brand recognition of established players also acts as a barrier.
- Bargaining power of buyers: Large buyers like supermarkets have significant bargaining power due to the consolidated nature of retail industry. They can negotiate for better prices and terms.
- Bargaining power of suppliers: Grapes form a crucial input for champagne production. The geographic concentration of champagne vineyards in France allows large grape suppliers to exert pressure.
- Threat of new substitutes: While sparkling wines pose competition, champagne has strong brand equity as a luxury product from France. Consumers also perceive it as superior in taste and quality.
- Competitive rivalry: The champagne industry is dominated by a few big players. Intense rivalry exists between brands in terms of distribution, new product introductions and marketing campaigns to attract customers.
Key Takeaways
The global champagne market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing preference for luxury alcoholic beverages during festive seasons and social events.
Regional analysis: France accounts for over 95% of the global champagne production, driving its dominant position in the market. However, North America region is expected to be the fastest growing market owing to rising luxury consumption and social drinking culture in the US and Canada.
Key players operating in the champagne market are Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger. Key players are involved in developing innovative packaging and flavors to expand their portfolio and attract new consumers across global markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
