Sparkling Wine Market Report

Based upon the product type segment, prosecco and champagne are the dominant wine products in the sparkling wine market. The champagne is holding the majority of market share due to its significance with parties and special events. It has always been a favourite option for celebrations like weddings, anniversaries, New Year's Eve, and other certain occasions, and its luxury and festive themes remain dominant in the market despite the increasing acceptance of other sparkling wine varietals. Champagne is recognized for its stringent production method, which yields precise bubbles, sophisticated flavours, and a luxurious look.

The champagne comes in a wide range of flavours, from brut to rosé, and frequently connects with celebrations and elegance. The price-sensitive consumers seek out the other cost-effective option, where prosecco wine stand out as the first choice for the price-sensitive consumers. As per data, usually the champagne costs US$ 30 to US$ 150, so it would cost more expensive and luxurious. Meanwhile, the prosecco would be the ideal option for the budget-conscious consumer, as it cost approximately up to US$ 10 to US$ 40. Thus, both wines boost the market growth significantly on special occasions and events like birthdays and wedding.

The still wine is much cheaper as compared to the sparkling wine, as it takes extra steps and time and has a time-consuming procedure. The primary difference between sparkling wine and still wine is that sparkling wine goes through a secondary fermentation cycle to yield bubbles. The extra secondary fermentation leads to the requirement of extra resources, and that increases the production cost for the sparkling wine. Sparkling wine frequently needs more time to age than still wine to get the desired taste and texture. All authentic Champagnes must mature in the winemaker's vineyards for up to 15 months before being released. Vintage cuvées mature for at least three years.

With the shift in taste of consumer interest, the changes in regulatory rules or addition of new regulatory rules can hamper market growth for the wineries. The stringent regulatory laws of the United States limit the direct distribution of wine in the United States. According to the NCSL, the Arkansas requires that a consumer be present at the time of purchase unless shipping from a small farm winery licensee. The Delaware requires that shipments must be delivered to a wholesaler, then delivered to consumers by a retail license. In addition, Mississippi require that a consumer may purchase at a winery and have the shipment sent to an in-state package retailer. Rhode Island requires that the consumer be present at purchase to ship the alcohol to the consumer.

Prominent industry leaders prioritize marketing strategies such as introducing new products, executing mergers, and pursuing acquisitions to expand their customer base and enrich their company's product offerings. In February 2024, the Accolade Wines and Australian Vintage had announced their plans to merge. Australian Vintage, a registered company, confirmed this to the Australian Securities Exchange. Furthermore, In August 2023, Blur's Alex James had released a new 'Britpop' sparkling wine.

In August 2023, BACARDÍ marks the wrap-up of National Rum Month with the debut of the third instalment in its exclusive cask finish series - the BACARDÍ Reserva Ocho Sevillian Orange Cask Finish. This limited-edition announcement celebrates the union of tradition and innovation within the world of fine quality rum. However, in December 2023, Mionetto, a renowned Italian prosecco brand, has volunteered into the non-alcoholic market with a new offering a zero-proof sparkling wine replicating the taste of its renowned Prestige Prosecco Brut.

Europe is projected to hold the highest share of the global sparkling wine market. Europe has a long history of producing sparkling wines, with renowned sections like Champagne and Prosecco. However, Germany is the fourth major wine producer in the European Union after France, Italy, and Spain. As per USDA, the wine production from 2022 garnered for marketing in calendar year 2023 is estimated at 9.4 million hectolitres, 9.8% higher than the previous year. Although Germany produces a lot of wine domestically in terms of volume, it is still the biggest importer of wine in the world. The European Union holds the distinction of being the global leader in wine production, consumption, and exportation. Europe commands half of the world's wine production, with Spain, France, and Italy collectively contributing three-quarters of the European Union's wine output.

Nonetheless, the Asia Pacific region is projected to experience the most rapid growth in the global sparkling wine market over the predicted time frame. The country is experiencing rapid economic growth, as consumers lives are affected by Western culture. In 2023, the Asia-Pacific region continues to be the primary force behind global growth, even as it deals with challenges such as shifting global demand from goods to services and stricter monetary policy. According to International Monetary Fund, the region is expected to grow 4.6% in 2023, compared to 3.9% in 2022. The wine sector in the region is also steadily increasing, with significant contributors including Australia, China, and Japan. With increased disposable income and spending capability, individuals are ready to allocate relatively high amounts of money on special events such as birthdays, weddings, promotions, and anniversaries, which in turn is likely to propel the sparkling wine market in Asia Pacific over the forecast period.