UK wine market to increase at a CAGR of 2.24% to 2017

Press Release   •   Jun 20, 2013 09:09 BST

Following the steep 2009 decline in year-on-year growth in the UK wine market, steady growth is expected at an average of 2.24% per year to 2017.

The wine industry is very well established in the UK, with consumers able to purchase a wide range of red, white and rosé wines in on-trade and off-trade outlets.

Traditionally seen as struggling with an unhelpfully cold climate, the English and Welsh wine industry has been helped by the warmer British summers over recent years and it is speculated that global warming may encourage major growth in the future.

The United Kingdom is a major consumer, but only a very minor producer of wine, with English and Welsh wine sales combined accounting for just 1% of the domestic market.

Wine is perhaps the biggest product in terms of variety that a consumer can buy in a supermarket, which could explain why the market has continued to perform well throughout tough economic times: if consumers hit upon hard times, they still have the option of purchasing cheaper wines.

Looking at trends in the wine market, wine brands are expected to continue to increase, with the range of products available anticipated to grow. At present, there are a number of well-known brands available; however, the wine market is made up of so many varieties, that it has been difficult for a single brand to perform well on a mass scale.

Differences in consumer tastes also mean that the market cannot be represented by a single brand, with some consumers willing to spend more than others, while tastes also differ in terms of preferences for white, red or rosé wines.

Despite the continuing success of the industry, the wine market is suffering from somewhat of an identity crisis. As such, new products and varietals are important for encouraging growth and attracting new consumers. At the same time though, it is important to ensure that existing consumers are still able to access products that suit their personal tastes.

While the introduction of wines from nations not typically associated with the production of the drink -- such as Russia, Brazil, India and the People's Republic of China (PRC) -- goes some way towards opening up the market for expansion, existing consumers must not be ignored if the market is to continue to grow.

For more information on the UK wine market, see the latest research: UK Wine Market

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