Champagne is a sparkling wine produced from grapes grown in the Champagne region of France following traditions and practices that have changed little since the practice was first established in the 17th century. Champagne is known for its refined and luxurious nature and is associated with celebrations and events of importance.
The global Champagne Market is estimated to be valued at US$ 7.67 Bn in 2023 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:
The global champagne market is witnessing rising demand for premium and luxury champagne variants from high-income groups and increasing middle-class population across the globe. Introduction of innovative packaging solutions such as cans, bottles with magnums, minis, bag-in-box, and others is also contributing to the market growth. In addition, increasing sales of champagne through online retail platforms is expected to offer lucrative growth opportunities over the forecast period.
- Strength: Champagne enjoys a very strong brand recognition globally as a luxurious and premium product. The region of Champagne in France enjoys Geographical Indication tag for champagne production which protects it from unauthorized usage.
- Weakness: Champagne production is highly seasonal and dependent on weather and climatic conditions of Champagne region. Any extreme weather events can impact the overall yield and supply. Small local producers find it difficult to compete against large global brands.
- Opportunity: Emerging markets in Asia Pacific present huge market potential for champagne sales driven by rising affluence. Premiumization trend across the globe is prompting consumers to gift and purchase high-end beverages such as champagne.
- Threats: Presence of alternate sparkling wine varieties produced outside the Champagne region poses price competition. Stringent regulations around champagne production increase its manufacturing costs. Volatility in grape prices impacts champagne producers.
The global champagne market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing culture of celebrations and social events. Champagne shares different occasions like weddings, anniversaries, New year’s eve where it is preferred to be served.
The Europe region currently dominates the global champagne market with highest market share. Within Europe, France accounts for majority of champagne production owing to favorable climatic conditions and existence of top champagne houses in the Champagne region of France. Asia Pacific region is anticipated to be the fastest growing market for champagne due to rising luxury consumption in countries like China, India and Japan.
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. These players are focusing on capacity expansion, new product launches and strengthening their distribution network to increase market share.