The global champagne market is a multi-billion dollar industry. Champagne is a luxury sparkling wine produced in the Champagne province of France using the traditional method, which involves a second fermentation process in the bottle. While other sparkling wines are produced using similar techniques, champagne has legally protected designation of origin and quality standards. Champagne finds widespread applications for events like weddings, parties, celebrations and as a status symbol.
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 increased demand for luxury drinking experiences have been a key driver of the global champagne market in recent years. Luxury brands like Moet & Chandon have curated premium sparkling wines under their champagne labels that emulate opulence, sophistication and prestige. This has attracted a certain class of high-net-worth individuals who seek branded luxury products as a symbol of status and wealth. Furthermore, the thriving events industry for celebrations like weddings have continued to generate strong momentum for champagne consumption worldwide. Premiumization trends in the beverage alcohol segment are expected to further propel the demand for champagne and similar luxury sparkling wines over the forecast period from 2023 to 2030.
Strength: Champagne has a premium brand image and reputation associated with celebrations and special occasions. This provides a unique selling point compared to other types of sparkling wines.
Weakness: Champagne is produced using traditional methods which makes it more expensive to produce compared to other sparkling wines. This limits its accessibility to mass consumers.
Opportunity: Emerging markets like Asia Pacific provide opportunities for growth given rising incomes and exposure to Western luxury brands. There is potential to target new consumer segments.
Threats: Other sparkling wine producing regions like California, Australia and South America offer cheaper alternatives. Stringent regulations around production can restrict flexibility to adapt to changing trends.
The global champagne market is expected to witness high growth over the forecast period of 2023 to 2030 driven by rising celebrations and gift consumption. The market size for 2024 is projected to reach US$ 7.67 billion indicating annual growth of 5%.
Regional analysis: Europe dominates the global market led by champagne producing countries of France, Spain, and UK. Within Europe, France accounts for over 95% of global champagne production and is the highest consuming country as well. The Asia Pacific region is growing fastest due to rising disposable incomes and growth of luxury consumption in countries like China, India, and Japan.
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. These brands are focused on expanding their presence in fast growing Asian markets through innovative packaging, marketing initiatives and targeting younger consumer base.