Wine in the United Kingdom

PROSPECTS

Sparkling wine sales continue to soar, albeit at a decelerating rate

Although per capita wine consumption is relatively low in the UK compared to other Western European countries, per capita sparkling wine consumption is among the highest. Total volume sales of champagne continue to decline in the UK as consumers look for other sparkling wines, perceived as better value.

Changing consumer habits lead to rising demand for alternatives such as vegan, organic and low/no-alcohol wines

While the total volume growth of still light grape wine is set to stagnate over the forecast period, alternative wine products are gaining popularity. One of the megatrends that will continue to impact consumer product categories is healthy living.

Smaller categories set to enjoy modest volume growth, while still light grape wine stagnates

Fortified wines such as vermouth will continue to benefit from the resurgence of the cocktail culture. Port is also growing as associations of it being old-fashioned begin to fade away.

COMPETITIVE LANDSCAPE

Accolade Wines Ltd remains the leading company

Among the top-ranked companies producing still light grape wine, E&J Gallo Winery Europe Ltd’s Barefoot brand grew fastest in 2017. Many companies have suffered falling margins due to Brexit-driven inflationary pressures meaning buying in euros and other major foreign currencies is a significant disadvantage.

Discounters continues to steal total volume share

Discounters, especially Aldi and Lidl, continue to win share among sales as consumers look for better value alternatives. Wines from discounters continue to win taste awards and expand their ranges, so the shift away from hypermarkets and supermarkets towards discounters is set to continue.

Online sales of wine continue to rise

The share of wine sales made online is also rising as consumers seek convenience, while also being driven by a desire for a better understanding of the different wine varieties available to them. The online wine rating and e-commerce platform, Vivino, for example, continues to expand its share of sales and offers a home delivery service to its premium users.

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