The main elements promoting the expansion of the champagne market are the accessibility of many champagne tastes and rising expenditure by hotels, airline services, and other businesses to maintain champagne of various flavours. Other significant factors that influence the growth of the champagne industry include the increasing use of champagne in various cocktails and cuisines. The market value of champagne will continue to increase due to shifting customer tastes and preferences as well as rising acceptance of alcohol consumption in consumer culture. The high price of champagne and the fluctuating cost of raw materials, however, will be a significant obstacle to the expansion of the champagne market.
The champagne market will be severely impacted by the recession. Even though price inflation is expected to fall in 2023, an increase in interest rates would almost certainly cause economic growth to slow significantly. Other factors that contribute to inflation include the partial reversal of globalisation, labour shortages in many Western countries, which raise the cost of manufacturing, and the transition to a shared economy in response to our species' greatest threat.
Rising demand from emerging markets will drive market growth
In emerging markets, Champagne already sees a substantial market opportunity. Growth in emerging markets is anticipated to be fueled by increased alcohol acceptance and rising demand for little amounts on special occasions. Non-religious acceptance of alcohol is correlated with a booming nightlife and a peer-approval-driven culture. Additionally, younger kids are catching on to a way of life thanks to the increased use of social media. Peer connections and information sharing are also developing among young people who haven't had much contact with alcoholic beverages. The expansion of the worldwide champagne market is therefore anticipated to benefit greatly from this during the time of forecasting.
High Cost of Champagne to Limit Market Growth
Champagne is typically seen as a luxury good, and as such, it can be costly in comparison to other kinds of wines. Champagne's high price an important market restraint at times. Limited production, high production costs, marketing and branding, and quality control all contribute to champagne's premium price. In order to preserve quality and authenticity, champagne is made in a tiny region of France under rigorous regulations. Because of supply and demand, there is a finite amount of champagne that can be made each year, which raises the price. Furthermore, champagne production requires a lot of labour, and France has a rather high cost of living. Additionally, the champagne grapes are often hand-picked, which is an expensive and time-consuming operation. Champagne is traditionally made through a secondary fermentation in the bottle, which is a time-consuming and expensive process.
Based on product, the champagne market is segmented into prestige cuvée, blanc de noirs, blanc de blancs, rosé champagne, and others. The blanc de blancs category dominated the market in 2022. The "essence of champagne" is this product category, which is made solely of chardonnay. It enjoys a high level of consumer favourability because of its great natural acidity and unusual minerality. Because of this union, it has a chance to mature healthily. Also, a wide range of foods can be paired with it, including shellfish, turbot, sea bass, and even aged cheese with strong characteristics. The most popular variants are Chartogne-Taillet Heurtebises, Krug Clos du Mesnil, Taittinger Comtes de Champagne Blanc de Blancs, Palmer & Co. Blanc de Blancs, and Pol Roger Blanc de Blancs. fuelling the segmental growth during the anticipated timeframe.
By Distribution Channel
Based on distribution channel, the champagne market is segmented into supermarkets/hypermarkets, specialty stores, and online stores. The supermarkets/hypermarkets category dominated the market in 2022. due to the strong market visibility of liquor stores as a significant source of consumer purchases. It is more profitable to purchase a bottle from a store rather than a pub because the price is lower. To ensure maximum sales, store owners have been abiding by various laws and customer needs.
By Grade Type
Based on grade type, the champagne market is segmented into pinot meunier, pinot noir, and chardonnay. The pinot noir category dominated the market in 2022. Pinot Noir Champagne, commonly referred to as Blanc de Noirs Champagne, is a variety of Champagne produced solely from Pinot Noir grapes or from a combination of Pinot Noir and Pinot Meunier grapes. Together with Chardonnay and Pinot Meunier, there are three main grape varietals utilised to make Champagne. The conventional process is usually used to create Pinot Noir Champagne, giving the wine its distinctive bubbles through a secondary fermentation in the bottle.
Based on flavor, the champagne market is segmented into fruity, and brut. The fruity category dominated the market in 2022. Champagne with a strong fruit flavour is referred to as having a fruity flavour, and is frequently distinguished by notes of citrus, orchard fruits, berries, or tropical fruits. Champagne's fruitiness might be attributed to the winemaking technique, the terroir, or the grape varieties employed. For instance, champagne made from Chardonnay grapes may taste of green apple, pear, and lemon, whereas champagne made from Pinot Noir grapes may taste of red berries, such as strawberry or raspberry. Peach and apricot flavours are common in champagne made from Pinot Meunier grapes.
By Price Point
Based on price point, the champagne market is segmented into economy, mid-range, and luxury. The economy settings category dominated the market in 2022. Growth in the industry has been aided by a rise in the consumption of reasonably priced champagne on special occasions among the middle-class and higher middle-class populations of developing nations.
Europe is projected to hold the largest share of the champagne market over the forecast period. Due to the strong levels of product acceptance among customers in the United Kingdom, France, Belgium, and Germany, the region is anticipated to maintain its dominance in the foreseeable future. Additionally, the legalisation of online alcohol delivery in a number of nations, including the U.K. and Germany, has made the product easier to access and purchase. Trade associations, like the Comité Champagne, have been making an effort to advance the interests, economic development, and oversight of both winegrowers and the businesses that buy and market the wine. On the other hand, the Asia Pacific champagne market is anticipated to grow significantly. This growth rate is linked to expanding product consumption in nations like Australia, Japan, China, Hong Kong, and Taiwan, which is propelled by changing lifestyles, an increase in disposable income, pop culture's influence, and the accessibility of more foreign brands. The popularity of large-scale social and business events has also increased product demand.
LIST OF KEY COMPANIES PROFILED:
- Champagne GH Martel & Co
- Moet Hennessy USA, Inc
- Vranken - Pommery Monopole
- Pernod Ricard
- Louis Roederer
- Veuve Clicquot
- Andre Champagne Cellars
- Centre Vinicole – Champagne Nicolas Feuillatte
- G.H. Mumm et Cie
- In February 2022, The champagne "Cristal" by Champagne Louis Roederer was released in 2014 vintage form, with a dosage of 7 g per l and a retail price (in the UK) of around USD 331.98 for a 75 cl bottle.
|Market Size in 2022||USD 7.2 Billion|
|Market Forecast in 2030||USD 9.7 Billion|
|Compound Annual Growth Rate||5.10 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Product, By Distribution Channel, By Grade Type, By Flavor, By Price Point and By Geography|
|By Distribution Channel||
|By Grade Type||
|By Price Point||