Craft Wine Market Size was valued at USD 39.3 Billion in 2022. The Craft Wine Market industry is projected to grow from USD 41.3 Billion in 2023 to USD 62.02 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2023 - 2032). The increase in consumer spending on healthy beverages like craft wine and the rise in demand for artisanal and natural products are expected to be significant market drivers for the craft wine market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market CAGR for craft wine is being driven by the increased production of craft wine and the changing preferences of consumers. According to the IWSR drinks market analysis report, consumption of sparkling and still wine is projected to reach a total value of US$207 billion by 2022, with a volume exceeding 2.7 billion nine-liter cases. In the United States, there are more than 11,000 wineries, of which approximately 81% produce around 5,000 cases annually, while 16% produce between 5,000 and 49,000 cases of wine in 2022. The surge in the consumption of premium wines is a significant driving force behind the craft wine market's growth. The top 10 wine-consuming countries include China, the U.S., Brazil, Germany, Russia, Mexico, Poland, Spain, South Africa, and Japan.
Consumers are increasingly inclined to purchase artisanal, locally sourced, and distinct wines. This heightened demand for high-quality and authentic products has propelled the craft wine industry. According to Statista, it is projected that by 2027, 51% of consumer spending and 26% of volume consumption in the wine segment will occur outside the home, such as in hotels and restaurants. Given the current market landscape, consumers are gravitating towards craft wine due to its exceptional quality, diverse flavors, and the numerous benefits it offers. This shift is driving the growth of the craft wine market. Additionally, the growth of the e-commerce sector is raising awareness about the advantages of craft wine, making it more accessible to consumers through online platforms.
As a result, it is anticipated that throughout the projection period, demand for the Craft Wine Market will increase due to the increased production of craft wine and the changing preferences of consumers. Thus, driving the Craft Wine Market revenue.
The Craft Wine Market segmentation, based on Type includes Sparkling Wine, Still Wine, and Others. The sparkling wine segment dominated the market, accounting for 58% of market revenue (22.7 billion). The surge in popularity of sparkling wines has captured the attention of industry experts and analysts. This phenomenon can be attributed to various factors, including evolving consumer preferences and tastes, which have significantly boosted the demand for these types of wines. The consumption of sparkling wines has exhibited remarkable growth since the beginning of the 21st century. As indicated by Concours Mondial de Bruxelles, in 2023, sparkling wine is expected to overtake beer as the most favored alcoholic beverage in the United States. Notably, American consumption of sparkling wine has surged by 30% from 2019 to 2022. Except for the biennium 2009-2010, marked by the economic crisis and its significant impact on sparkling wine sales, the demand for sparkling wine has exhibited consistent growth over the past two decades.
The Craft Wine Market segmentation, based on Flavor, includes Red Wine, Rose Wine, and White Wine. The red wine segment dominated the market, accounting for 60% of market revenue (23.5 billion). The growth of the red wine market is expected to be driven by the escalating health consciousness among consumers. Healthy eating has evolved into a prevailing trend, with consumers now seeking food and beverage products that align with increasingly intricate health, ethical, and sustainability standards. Red wine, rich in potent plant compounds, is associated with a range of health advantages, including reduced inflammation, a diminished cancer risk, and an extended lifespan. Furthermore, the alcohol content and antioxidants in red wine contribute to the prevention of coronary artery disease. As per the International Food Information Council's 2020 Food and Health Survey, a considerable portion of consumers, with 54% being the overall figure and 63% among those aged 50 and above, are expressing concerns about the healthfulness of the food and beverages they consume. Consequently, the heightened health awareness among consumers is a pivotal driver of growth in the red wine market.
Figure 1: Craft Wine Market, by Flavor, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Craft Wine Market segmentation, based on Distribution Channels, includes On-trade, and Off-Trade. The on-trade segment dominated the market, accounting for 60% of market revenue (23.5 billion). These establishments offer consumers the opportunity to savor their drinks in a social setting, accompanied by live music and culinary experiences in restaurants and lounges. As an additional attraction, some wineries have even begun permitting customers to partake in the wine-making process, which serves as an engaging point of interest. These factors collectively contribute to the proliferation of on-trade sales within the craft alcoholic beverage market.
Craft Wine Market Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. North America has established itself as the leading region in the market, primarily due to the surging consumer demand for craft alcoholic beverages, including beer and wine. Notably, according to data from the "Brewers Association" in 2021, beer sales in the United States experienced a 1% increase overall, while craft brewers witnessed an impressive 8% growth, thereby expanding their share of the beer market to 13.1% in terms of volume. Craft beer alone accounts for roughly 27% of the substantial USD 100 billion United States beer market, marking a notable rise from the previous year's USD 94 billion. Retail dollar sales of craft beer escalated by 21% to reach USD 26.8 billion. This impressive growth can be attributed to the presence of a multitude of craft brewers and boutique wine shops, particularly in countries such as the United States and Canada, which has significantly amplified consumer consumption of these products.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CRAFT WINE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Craft Wine Market accounts for the second-largest market share as European countries have a rich and longstanding tradition of wine production, with beverages playing an integral role in traditional cuisine across the region. The expansive vineyard acreage in these countries has led to a substantial increase in wine production on a significant scale. For instance, data from the International Organisation of Vine and Wine in 2021 reveals that Spain boasts the largest vineyard surface area in Europe, covering 964,000 hectares, followed by France with 798,000 hectares and Italy with 718,000 hectares. This extensive vineyard acreage plays a pivotal role in facilitating increased wine production. The reputation of European wines for their quality and craftsmanship is well-established. This reputation extends to the craft wine segment, as consumers associate European craft wines with excellence and authenticity. Further, the German Craft Wine Market held the largest market share, and the UK Craft Wine Market was the fastest-growing market in the European region
The Asia-Pacific Craft Wine Market is expected to grow at the fastest CAGR from 2023 to 2032. The governments of developing countries are making substantial investments in the liquor sector, recognizing it as a potential source of early income. Their strategies encompass the promotion of new businesses and the emergence of small and medium-sized enterprises, which are anticipated to bolster growth in the target market. For instance, in 2018, local wine production in India reached 17 million liters, while wine imports amounted to 5.2 million liters, valued at US$28.3 million. Market players are adopting a strategic approach by seeking opportunities in untapped markets within developing countries through collaborations and partnerships, which is set to further foster growth in the regional market. The rise in local wine production, such as in India, fosters a sense of authenticity and pride in locally crafted wines. As consumers increasingly favor local and artisanal products, this trend bolsters the craft wine market. Moreover, China’s Craft Wine Market held the largest market share, and the Indian Craft Wine Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Craft Wine market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Craft Wine industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Craft Wine industry to benefit clients and increase the market sector. In recent years, the Craft Wine industry has offered some of the most significant advantages to consumers and wine enthusiasts. Major players in the Craft Wine Market, including A Blooming Hill Vineyard & Winery (United States), Chateau Niagara Winery (United States), ALDI Inc. (Essen, Germany), House of Saka (California, United States), Koi Zen Cellars (United States), LGI Wines (France), Auscraft Wine (Australia), CRFT Wines (Australia), Clover Hill Wines (Australia) and Scotch Church Road Vineyard (United States) are attempting to increase market demand by investing in research and development operations.
Aldi Inc, a subsidiary of Aldi Einkauf GmbH & Co oHG, operates a chain of discount grocery stores. The company's stores offer a wide range of products, including food, beverages, baby care items, household goods, fresh produce, pantry staples, pet supplies, frozen foods, meat, seafood, and a diverse selection of premium and non-premium wines and beers. These products are marketed under various brand names such as Little Journey, Elevation, Plant-based Picks, liveGfree, Simply Nature, Never Any, Fit & Active, and Specially Selected, among others. Aldi conducts its operations in the United States and has its headquarters in Batavia, Illinois. On September 7, 2023, Aldi, a rapidly expanding retailer in the United States, exclusively launched a new collection of premium wines under the 'Specially Selected' label. These wines, available starting from September 8, are affordably priced, with most bottles costing under $10. They are designed to complement the range of new Specially Selected cheeses offered at Aldi.
Clover Hill Wines, established in 1986 on the grounds of a former dairy farm in northeastern Tasmania, was specifically created to produce high-quality, globally recognized sparkling wines. The selection of the Clover Hill site was based on its ancient volcanic soils and sheltered amphitheater topography. These fertile, rolling hills are now dedicated to cultivating Clover Hill's Pinot vines. The property covers 66 hectares in Lebrina, Pipers River, with a commanding view of Bass Strait, providing an ideal vineyard setting. The climate here is characterized by a cool maritime influence, featuring mild autumn temperatures with highs around 25ºC and lows at 10ºC. Clover Hill's vineyard exclusively grows traditional sparkling wine grape varieties, including 13 hectares of Chardonnay, 7 hectares of Pinot Noir, and 1.24 hectares of Pinot Meunier.
Craft Wine Industry Developments
February 2022: On February 15, 2022, Queen Elizabeth introduced a distinctive sparkling wine into the market to commemorate her Platinum Jubilee. This newly launched wine is a blend of Chardonnay, Pinot Noir, and Pinot Meunier varietals.
May 2022: On May 16, 2022, Vintners. co, a Brooklyn, NY-based platform facilitating connections between craft wine producers and importers, unveiled a online platform dedicated to the craft wine industry. The company has strategic plans to further expand this platform, offering a comprehensive suite of services encompassing marketing, logistics, sales, and financing support for industry stakeholders.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 39.3 Billion |
| Market Size 2023 | USD 41.3 Billion |
| Market Size 2032 | USD 62.02 Billion |
| Compound Annual Growth Rate (CAGR) | 5.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Flavor, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | A Blooming Hill Vineyard & Winery (United States), Chateau Niagara Winery (United States), ALDI Inc. (Essen, Germany), House of Saka (California, United States), Koi Zen Cellars (United States), LGI Wines (France), Auscraft Wine (Australia), CRFT Wines (Australia), Clover Hill Wines (Australia) and Scotch Church Road Vineyard (United States). |
| Key Market Opportunities | Increasing demand for low-calorie alcoholic beverages |
| Key Market Dynamics | Rising urban preference for exotic wine |
Frequently Asked Questions (FAQ) :
The Craft Wine Market size was valued at USD 39.3 Billion in 2022.
The Craft Wine Market is projected to grow at a CAGR of 5.20% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are A Blooming Hill Vineyard & Winery (United States), Chateau Niagara Winery (United States), ALDI Inc. (Essen, Germany), House of Saka (California, United States), Koi Zen Cellars (United States), LGI Wines (France), Auscraft Wine (Australia), CRFT Wines (Australia), Clover Hill Wines (Australia) and Scotch Church Road Vineyard (United States).
The Sparkling Wine type dominated the market in 2022.
The On-trade segment had the largest share in the market.
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