UK Wine Market

UK Wine Market Overview:

The UK wine market size reached USD 25.31 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 36.65 Billion by 2032, exhibiting a growth rate (CAGR) of 3.80% during 2024-2032. The market is primarily driven by increased domestic wine production, supportive government incentives, rising disposable incomes and changing consumer preferences toward quality and sustainability.

UK Wine Market Trends:

Increased Consumer Demand for Wine

The UK wine market has experienced robust growth due to rising disposable incomes, which enable more consumers to indulge in higher quality, often organic wines. As lifestyles evolve, there is a noticeable trend where consumers are seeking better quality, uniqueness, and authenticity in their wine choices, favoring products that offer a more personal touch or ecological benefit. According to the Wine and Spirit Trade Association (WSTA), a recent study shows the industry generated over £76 Billion in economic activity in 2022. This is a significant increase from £49 Billion recorded five years prior. Moreover, the study conducted by the Centre for Economics and Business Research (CEBR) underscores the vital role of this sector, contributing over £22 Billion in Gross Value Added (GVA) to the UK economy last year. The UK continues to be the world's second-largest wine importer, with around 1.7 billion bottles imported in 2022, and it maintains its position as the top global exporter of spirits, shipping approximately 1.8 billion bottles overseas during the same period. This trend reflects a broader shift in consumer preferences toward more specialized wine options, driving winemakers to innovate and produce distinct, high-quality wines that meet this refined demand across the UK.

Expanding Domestic Wine Production

The UK's domestic wine industry has seen a significant uptick in activity and output, particularly in regions like Kent and Sussex on the production front. According to the Wines of Great Britain, the registration of 87 new vineyards pushed the total number of UK vineyards over the 1,000 mark for the first time, according to government records in 2023. Additionally, the number of wineries increased from 209 to 221, and the area cultivated with vines now covers 4,209 hectares, a 123% increase over the past decade. WineGB reports that the sales of English and Welsh wines have been increasing steadily and sustainably as new vineyards begin producing. Besides, last year, sales grew by 10%, reaching 8.8 million bottles.  Moreover, total sales of sparkling wines have increased to 187 % from 2018 and from 2. 2 Million bottles to 6. 2 Million in 2023. Besides this, there was a similar uptick in the sale of still wines by 117% from 1. 2 Million to 2.6 Million. This growth is due to the increase in the size of the existing vineyards and the expansion of new vineyards owing to the increased demand for wines across the UK and internationally. In addition, improvements in viticulture practices and climatic conditions have also contributed to the growing wine market.

UK Wine Market News:

• In August 2024, Shepherd Neame, the oldest brewery in Britain based in Faversham, introduced a new collection of English wines through a partnership with the acclaimed Balfour Winery. These two Kent-based, independently owned family businesses have collaborated to produce English Garden, featuring a refined white wine and a fresh rose made from grapes grown in Kent.
• In June 2024, Chapel Down, the largest wine producer in the UK, is considering financing options regarding its business development, which include sales and fundraising. The firm needs more capital to fund its expansion plans, which include the purchase of new vineyards, construction of a new winery that is planned to be operational by the 2026 harvest, and the continued expansion of its Tenterden wine estate.

UK Wine Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on product type, color, and distribution channel.

Product Type Insights:

• Still Wine
• Sparkling Wine
• Fortified Wine and Vermouth
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes still wine, sparkling wine, and fortified wine and vermouth.  

Color Insights:

• Red Wine
• Rose Wine
• White Wine
   

A detailed breakup and analysis of the market based on the color have also been provided in the report. This includes red wine, rose wine, and white wine.

Distribution Channel Insights:

• Off-Trade
  • Supermarkets and Hypermarkets
  • Specialty Stores
  • Online Stores
  • Others
• On-Trade
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes off-trade (supermarkets and hypermarkets, specialty stores, online stores, and others) and on-trade.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Wine Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK wine market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK wine market?
• What is the breakup of the UK wine market on the basis of product type?
• What is the breakup of the UK wine market on the basis of color?
• What is the breakup of the UK wine market on the basis of distribution channel?
• What are the various stages in the value chain of the UK wine market? 
• What are the key driving factors and challenges in the UK wine?
• What is the structure of the UK wine market and who are the key players?
• What is the degree of competition in the UK Wine market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK wine market from 2018-2032
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK wine market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK wine industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.