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The Future of Wine: Capitalizing on New Opportunities and Preferences |
| Published Date : 12 February 2010 |
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Pages : 164 |
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Introduction
Unlike the beer market, wine has not experienced a sustained decline and has continued to grow in value in some regions despite the economic crisis. Success in the market will be driven by appealing to the continuing growth of consumers' trading up tendencies in core markets while educating and heightening the appeal of wine among new consumers in emerging markets and younger demographic cohorts.
Scope
*Detailed insights and analysis documenting the drivers and inhibitors of the wine market
*Exclusive occasions, market and consumer survey data and analysis covering each category
*Strategic conclusions combined with actionable recommendations for all industry players looking to fully capitalize on this market
*Countries covered: France, Germany, Italy, the Netherlands, Spain, Sweden, UK, US, Australia, Japan, South Korea, China, India, Brazil, and Russia
Highlights
Alcohol sales growth is suffering from the affects of the global downturn, but longer term trends such as moderation for health or expenditure reasons are well established threats. The shift towards premiumization and a higher value/lower volume consumption pattern is set to continue but has lost momentum and is not forestalling the sales decline.
Health is one of the most significant trends influencing CPG brands in the present. Wine is best placed of the three main alcohol categories to capitalize on this, and regular moderate wine consumption has often been linked with health benefits. The industry has adapted further to this trend and lower alcohol wines have already seen some success.
Price and value-for-money are growing as influencing factors in what drinkers consume, where they consume and in what volume. The negative economic backdrop has clearly been a major motivator in this, and has further favored the off-trade over the on-trade.
Reasons to Purchase
*Consumer understanding: obtain a detailed understanding of consumer attitudes and behaviors towards wine
*Market understanding: identify the key wine markets and product innovation trends in 15 countries across four territories
*Ideation: find inspiration for innovative formulations and positioning that takes advantage of consumers' desires for premium and health attributes |
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Table of Contents : |
Overview 1
Catalyst 1
Summary 1
2
Table of figures 3
THE FUTURE DECODED 4
INTRODUCTION: Wine is beer's principal competitor in the global alcoholic drinks market 4
TREND: The overall alcoholic beverage market is defined by its maturity and the moderate consumption behaviors of consumers 4
Sales performance in the alcoholic beverages market highlights the contrast between the saturated, static markets of the West and the developing potential of key emerging markets 5
Trends in consumers' consumption occasions mirror the flat performance in sales volumes 8
Males remain the dominant gender in overall alcohol occasions, although female consumption is growing stronger 11
Alcohol consumption occasions decline with age as moderation behaviors rise and consumers' priorities shift 16
Moderation, driven by rising attentiveness to health issues, is increasingly characterizing many consumers' alcoholic beverage consumption behaviors 20
Moderation has also been influenced by economic circumstances, but consumers remain resistant to the concept of cutting back on alcohol for purely financial reasons 24
Alcohol abstainers: although a minority, those who never drink account for sizeable shares of LDA consumers 29
Key takeouts and implications: growth potential in the alcohol market will be centered on tapping new consumer groups and the sustenance of trading up behavior 34
TREND: Wine is a popular alcoholic beverages category that is not experiencing the same slow sustained decline seen in beer, cider & FABs 35
Wine sales figures show mixed fortunes, although the category is not in the middle of a sustained decline 35
Wine occasions are one of the key consumption occasions in the alcohol market but frequencies in some developed markets are falling 40
Although men typically enjoy more wine occasions, the category is not subject to the pronounced male bias seen in both beer and spirits 45
Wine consumption is still skewed towards older age groups 51
Categorization of wine consumers can cross typical demographic groupings with differing mindsets having important lessons for the industry 54
Key takeouts and implications: the outlook for wine remains more positive than that for other major categories despite the downturn 56
TREND: On and off-trade dynamics in the wine market: consumers' off-trade consumption is the fundamental driver of category sales 57
The shift in alcohol sales from the on-trade to the off-trade reflects a trend predating the global economic downturn 57
The economic climate is however influencing consumers' propensity to consume on-trade and also their product choices 63
Recent trends show increased motivation among consumers to consume off-trade 67
Time scarcity and related external pressures on alcohol consumption occasions adds impetus to the move to the off-trade 72
The frequency and location of on-trade consumption habits around the world underlines preferences for moderate relaxed drinking occasions 75
Consumers drink with greater frequency when at home than they do on-trade 80
Brand choice is being influenced by price both on and off-trade, although this is, perhaps surprisingly, more marked off-trade 84
The wine category is rooted in the off-trade in most key markets 90
Wine is less dependent on on-trade occasions than the overall alcohol market FINISH!!!!! 94
Particular pressures on the wine market in the off-trade stem from the so-called 'discount trap' 98
Key takeouts and implications: the strength of the off-trade in the wine market continues to offer a reasonable degree of security for the wine industry 100
INSIGHT: Changing consumer preferences in the wine market: food and health associations are strong points for wine 101
Some consumers are shifting between categories based on price and value-for-money considerations, but habit and experiential attributes remain highly important 101
Wine's continued success is heavily based on its strong association with eating 107
Wine's popularity by occasion type peaks when matched with food 109
Wine is a fundamentally social consumption experience, influencing its suitability for different types of occasions 118
The influence of health on alcohol choice: wine benefits from widespread awareness and acceptance of certain healthy attributes but still faces challenges in maintaining a credible healthy positioning 119
The popularity of lower alcohol versions of brands reflects both health awareness and the general trend for moderation, but presents problems for the wine market 124
Consumers' origin and style preferences within wine are influenced by quality, sensory and value factors 128
Distribution channel preferences among consumers are shifting in favor of supermarkets and convenience stores 130
The online channel is influencing consumers' purchase behavior and is a valuable tool in tracking their changing preferences 131
Authenticity is a growing consumer motivator and stronger point for the wine market 131
Key takeouts and implications: wine continues to capitalize on its association with eating and actively benefit from the moderation of non-food related drinking occasions 133
INSIGHT: Innovation trends in wine: upscale and natural/ethical halo claims lead in new product releases 134
Recyclable is the leading product claim associated with wine, underlining the growth of issues such as ethicality and sustainability in the market 135
Manufacturers have continued to focus on meeting the upscale/premiumization trend despite the economic crisis 137
Mature has emerged as a tag in wine as manufacturers and marketers embrace the core older consumer base more openly 139
Organic claims have become increasingly relevant as a premium measure, but 141
Private label wine releases have been given impetus by the economic backdrop and increased credibility among consumers 143
Key takeouts and implications: tracking the key consumer mega-trends is essential to directing innovation in the wine market 144
ACTION POINTS 145
ACTION: Build a compelling case for brand loyalty in the off-trade 145
ACTION: Be aware of the risks of discounting and promotions to post-recessionary sales and brand equity 147
Pursue approaches that offer price-conscious consumers more flexibility in their spending 149
Be measured in pricing strategies and educate consumers that less is not always better 150
ACTION: Target comfort-based and social occasions 150
ACTION: Look at inorganic growth opportunities through co-operation and consolidation 152
ACTION: Online distribution is a major opportunity for the wine industry 153
ACTION: Social Media presents opportunities for targeting younger wine drinkers 155
ACTION: Enhance approaches to effectively educate consumers 158
Make wine descriptions more useful to consumers 159
ACTION: Be ready for renewed trading up opportunities during the post-recessionary period 159
Maintain a strong focus on innovation and R&D during times of economic uncertainty 159
Start planning for the longer term by continually tracking consumers as an economic recovery begins to become a reality 160
APPENDIX 162
Methodology 162
Further reading and references 163
Ask the analyst 164
Datamonitor consulting 164
Disclaimer 164
List of Figures
Figure 1: Alcoholic beverages market value and growth, 15 countries, across Europe, North and South America, and Asia Pacific 6
Figure 2: Alcoholic beverages market value (US$ millions) and volume (liters millions), by country, Europe, 2003-2013 7
Figure 3: Alcoholic beverages market value (US$ millions) and market volume (liters millions), Brazil and the US, 2003-2013 7
Figure 4: Alcoholic beverages market value (US$ millions) and market volume (liters millions) by country, Asia Pacific, 2003-2013 8
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Published By : Datamonitor |
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