Ken Research has released its report on the growth estimates of red wine in the global market “Global red wine industry in-depth investigation and analysis report 2017”. The report analyses growth prospects of red wine and provides valuable data about its production, revenue, consumption, import and export in North America, Europe, China, Japan, Southeast Asia and India, from 2011 to 2016, and forecast up to 2020.
With a CAGR of 4.2% for five years, the red wine industry can look for a colossal growth in future. Currently, the developed world and China are major consumers of red wine. The United States, Europe, Japan, and China collectively account for 51% of the global red wine market. But the market scenario will change with the red wine trend gaining momentum immerging economies.
Regions Covered in the report are:
Scope in Developing Economies
There is a steady growth in red wine consumption in emerging economies such as India and Brazil apart from China. Most of the red wine brands are likely to include China in their strategic global planning to tap into the country’s wine market. The average red wine growth in China is 4.4%. Our analysts believe that red wine consumption in China will continue to increase with an average growth rate of 4.6% in the next 5 years. Therefore, China will remain a go-to market for red wine producers for increasing their business.
China’s neighbour country India is another market with good prospects for red wine. Previously the growth of the wine sector in India was hampered by bottlenecks such as lack of storage and transport facilities, absence of proper wine marketing and promotional activities. Besides, stringent rules for domestic marketing of wines, regressive and strict government policies and different taxation across various states also hindered wine growth. With the expected implementation of GST from July 1, 2017, many problems of red wine producers and marketers will disappear.
The Indian wine industry has grown due to changing lifestyle of the urban people. The westernisation of the urban people has made wine drinking a style statement for them. The Indian wine industry has also benefitted from the provisions of WTO agreements applicable to it and due to the Indian government’s tourism initiative – Incredible India.
At present the share of red wine is enormous in India compared to other wine varieties. Wine consumption and awareness in India is still in a nascent stage. Thus, marketing becomes important to tap in Indian market. Reduction in the prevailing heavy taxes will make wine cheaper for consumers thus boosting its growth.
Innovation and Marketing
The cut throat competition in the wine market demands constant innovation and a strategic market approach. In the countries where the red wine market share has already peaked, companies are innovating in terms of taste, colour and design of the wine packing. The wine industry is today about delivering premium and luxury quality products and ensuring that these products must standout on the shelf to face the ever-increasing competition successfully.
A red wine brand with its eye-catching labels can also attract consumers. Also, different packaging sizes tailored to meet varying needs of customers helps in popularizing a red wine brand.
Today companies are also investing in wine tasting events and taking consumer feedback for the taste and quality of their products to tailor their products as per consumers’ tastes.
Key Factors Considered in the Report
Global Wine Industry
Global Alcohol Industry Research Report
Global Wine Market Size
Europe Wine Consumption
US Wine Industry
Japan Wine Market Research
China Wine Industry Research Report
India Wine Industry Research Report
Brazil Wine Industry Research Report
Global Wine Industry Future Outlook
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Ankur Gupta, Head Marketing & Communications