July 20, 2024

The Global Champagne Market is Expected to driven by increasing disposable incomes

Champagne is a sparkling wine made from grapes grown in the Champagne region of France according to strict rules that limit plantings to certain grapes and dictate production methods. The regulated areas produce the elite cuvées or blended wines that showcase the region’s pinot noir, pinot meunier, and chardonnay grapes. Due to the specific soil characteristics in Champagne, the region has a cooler climate that allows the grapes to retain their acidity, resulting in the signature sparkling wine with fine bubbles. The global Champagne market enjoys luxury branding and is consumed widely in weddings and celebratory events. The market is also witnessing growth in new regions as increasing disposable incomes allow consumers to trade-up to premium products.

The global Champagne Market is estimated to be valued at US$ 7.67 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the global champagne market is the increasing demand for rosé champagne. Rosé champagne accounts for around 10% of the total champagne production. It is gaining significant traction among millennials and generation Z consumers. The pink champagne comes from adding a small amount of still red wine or red grape skins to the blend of white grapes during the production process. This gives the wine its soft pink color. Rosé champagne is perceived as fun and youthful and its demand is growing at an accelerated pace compared to traditional white champagne. For instance, in the U.S., rosé champagne sales grew 22% in 2017-18 as compared to only 4% sales growth for the total champagne category. The rising demand for rosé champagne is expected to continue driving market growth over the forecast period.

Porter’s Analysis

  • Threat of new entrants: The champagne market requires high investments for vine cultivation and production facilities which acts as a barrier for new players.
  • Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes in the market. However, brand loyalty keeps buyer’s bargaining power in check.
  • Bargaining power of suppliers: Grapes growers have low bargaining power due to availability of alternative grape growing regions and suppliers.
  • Threat of new substitutes: Alternate sparkling wines offer threat of substitution. however champagne’s brand image and popularity keeps threats at moderate levels.
  • Competitive rivalry: The market is dominated by few major players leading to high competition.

Key Takeaways

The global champagne market is expected to witness high growth over the forecast period of 2023 to 2030. The global Champagne Market is estimated to be valued at US$ 7.67 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

Regional analysis: Europe dominates the global champagne market with France being the largest producer. The region accounts for over 90% of global champagne production led by popularity in European countries like France, UK, Germany, Spain etc. North America is the second largest market for champagne due to increasing consumption in USA and Canada.

Key players: Key players operating in the champagne market are Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger. Major players are focusing on expanding their production capacities and global presence through mergers and acquisitions to leverage opportunities in the growing market.