Wine in the United Kingdom

2020 IMPACT

Slow decline as most sales move off-trade

The temporary closure of most on-trade premises due to COVID-19 resulted in a strong volume decline for this channel in 2020, although some consumption shifted to the home, therefore leading to solid growth for the off-trade. The on-trade channel accounts for only a small share of overall wine sales.

Health, sustainability and food pairing become stronger trends

COVID-19 made consumers even more attentive to their health and to what they consumed. The strengthening of this trend, which in fact dated back to the pre-pandemic period, played in favour of organic and vegan wines, which saw an increase in their consumption across different retailers.

Accolade Wines maintains its lead but private label performs better

Accolade Wines remained the leading player in the fragmented wine category in total volume terms in 2020, thanks to its well-known Echo Falls, Hardy’s and Kumala brands, amongst others. However, such leading brands are facing fierce competition from private label, and the combined share of private label was actually far higher than that of Accolade in 2020.

RECOVERY AND OPPORTUNITIES

Recovery will extend beyond the forecast period

The impact of COVID-19 on wine will not only be limited to 2020, but will also continue to be felt in the forecast period. Even though the potential reopening of most bars and restaurants in mid-2021 is expected to ease the damage caused in 2020, it will not be enough to bring full recovery to the on-trade channel, whilst the off-trade channel is expected to see a strong decline in 2021 and minor declines for the rest of the forecast period in a period of correction after a year of exceptional growth in 2020.

Premiumisation will lead to higher value growth than before the pandemic

Despite the minor off-trade volume declines expected for most of the forecast period, these performances are still likely to be better than those seen before the pandemic, with the spike in off-trade sales in 2020 expected to have a longer-term positive effect on sales of wine in the main retailers. The planned reopening of on-trade establishments in 2021 will naturally result in a decrease in off-trade volume and value sales in all wine categories.

Sustainable products, new packaging and low alcohol will contribute to growth

The importance of sustainable and ethical production practices is not only a differentiator between wine brands nowadays, but it is also becoming a must for any player that wants to maintain its position in the market. 2020 saw a rise in sales of organic and vegan wines, which are likely to continue to see demand increase over time.