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Craft Wine Market

ID: MRFR/FnB/10965-CR
128 Pages
Snehal Singh
November 2023

Craft Wine Market Research Report Information By Type (Sparkling Wine, Still Wine, and Others), By Flavor (Red Wine, Rose Wine, and White Wine), By Distribution Channel (On-trade, and Off-Trade), And By Region (North America, Europe, Asia-Pacific, And Rest of The World) –Market Forecast Till 2035.

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Craft Wine Market Summary

As per MRFR analysis, the Craft Wine Market Size was estimated at 43.45 USD Billion in 2024. The Craft Wine industry is projected to grow from 45.71 USD Billion in 2025 to 75.9 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.2 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Craft Wine Market is experiencing a dynamic evolution driven by sustainability and diverse consumer preferences.

  • North America remains the largest market for craft wine, showcasing a robust demand for unique and artisanal products.
  • The Asia-Pacific region is emerging as the fastest-growing market, reflecting a rising interest in wine culture and consumption.
  • Still wine continues to dominate the market, while sparkling wine is witnessing rapid growth due to changing consumer tastes.
  • Sustainability initiatives and innovative flavor profiles are key drivers propelling the craft wine market forward.

Market Size & Forecast

2024 Market Size 43.45 (USD Billion)
2035 Market Size 75.9 (USD Billion)
CAGR (2025 - 2035) 5.2%

Major Players

E. & J. Gallo Winery (US), Constellation Brands (US), The Wine Group (US), Treasury Wine Estates (AU), Pernod Ricard (FR), Diageo (GB), Jackson Family Wines (US), Château Ste. Michelle (US), Bacchus Capital Management (US)

Craft Wine Market Trends

The Craft Wine Market is currently experiencing a dynamic evolution, characterized by a growing consumer preference for artisanal and locally produced wines. This shift appears to stem from an increasing awareness of sustainability and a desire for unique flavor profiles that mass-produced wines often lack. As consumers become more discerning, they seem to gravitate towards small-scale producers who emphasize quality over quantity. This trend is further fueled by the rise of social media, where wine enthusiasts share their discoveries and experiences, thereby influencing purchasing decisions. Moreover, the Craft Wine Market is witnessing a diversification of offerings, with producers experimenting with various grape varieties and innovative winemaking techniques. This experimentation not only caters to the adventurous palate but also aligns with the broader trend of personalization in consumer goods. As a result, the market is likely to see an influx of niche products that appeal to specific demographics, including millennials and Gen Z consumers who prioritize authenticity and storytelling in their purchasing choices. The future of the Craft Wine Market appears promising, as it continues to adapt to evolving consumer preferences and market dynamics.

Sustainability Focus

There is a noticeable emphasis on sustainable practices within the Craft Wine Market. Producers are increasingly adopting eco-friendly methods, from organic farming to minimal intervention winemaking. This trend resonates with environmentally conscious consumers who seek products that align with their values.

Diverse Flavor Profiles

The Craft Wine Market is marked by a growing interest in diverse flavor profiles. Winemakers are experimenting with lesser-known grape varieties and innovative techniques, resulting in unique offerings that cater to adventurous consumers. This trend enhances the overall appeal of craft wines.

Digital Engagement

The rise of digital platforms has transformed how consumers interact with the Craft Wine Market. Social media and online communities facilitate the sharing of experiences and recommendations, influencing purchasing behavior. This trend highlights the importance of digital presence for producers.

Craft Wine Market Drivers

Health Conscious Choices

The Craft Wine Market is witnessing a shift towards health-conscious choices among consumers. As awareness of health and wellness continues to rise, many individuals are seeking lower-alcohol and lower-calorie wine options. This trend is reflected in the increasing availability of wines labeled as 'light' or 'low-calorie,' catering to health-oriented consumers. Market Research Future indicates that the demand for these products has grown by approximately 15% in recent years. Additionally, the perception of wine as a healthier alternative to other alcoholic beverages is contributing to this trend. As a result, the Craft Wine Market is likely to expand its offerings to include more health-conscious options, appealing to a broader demographic.

Experiential Wine Tourism

The Craft Wine Market is benefiting from the rise of experiential wine tourism. Consumers are increasingly seeking immersive experiences that go beyond traditional wine tasting. This trend includes vineyard tours, wine and food pairings, and educational workshops, which enhance consumer engagement and foster a deeper appreciation for wine. Data suggests that wine tourism has grown significantly, with an estimated increase of 30% in visitors to wineries over the past few years. This surge in interest not only boosts local economies but also encourages wineries to invest in their visitor experiences. Consequently, the Craft Wine Market is likely to see continued growth as wineries capitalize on this trend, creating memorable experiences that attract and retain customers.

Innovative Flavor Profiles

The Craft Wine Market is characterized by an increasing interest in innovative flavor profiles. Consumers are seeking unique and diverse taste experiences, prompting wineries to experiment with unconventional grape varieties and fermentation techniques. This trend is evident in the rise of fruit-infused wines and blends that incorporate lesser-known grapes. Market data suggests that wines with unique flavor profiles have seen a sales increase of over 20% in recent years. This growing demand for distinct flavors not only attracts adventurous consumers but also encourages wineries to differentiate themselves in a competitive market. Consequently, the Craft Wine Market is evolving to cater to these changing consumer preferences, fostering creativity and innovation among producers.

Sustainability Initiatives

The Craft Wine Market is increasingly influenced by sustainability initiatives. Consumers are becoming more environmentally conscious, leading to a demand for wines produced using organic and biodynamic methods. This shift is reflected in the growing number of wineries adopting sustainable practices, such as using renewable energy sources and reducing water usage. According to recent data, approximately 30% of wineries are now certified organic, indicating a significant trend towards eco-friendly production. This focus on sustainability not only appeals to environmentally aware consumers but also enhances brand loyalty, as customers are more likely to support brands that align with their values. As a result, the Craft Wine Market is likely to see continued growth driven by these sustainability efforts.

Digital Marketing Strategies

The Craft Wine Market is experiencing a transformation due to the adoption of digital marketing strategies. Wineries are increasingly utilizing social media platforms and e-commerce channels to reach a broader audience. This shift is particularly relevant as younger consumers, who are more tech-savvy, represent a significant portion of the wine market. Data indicates that online wine sales have surged, with a reported increase of 25% in direct-to-consumer sales over the past year. By leveraging digital tools, wineries can engage with consumers more effectively, offering personalized experiences and targeted promotions. This trend not only enhances brand visibility but also drives sales growth within the Craft Wine Market, as producers adapt to the digital landscape.

Market Segment Insights

By Type: Still Wine (Largest) vs. Sparkling Wine (Fastest-Growing)

In the Craft Wine Market, the distribution of market share among the different types showcases a clear preference for Still Wine, which continues to hold the largest share in consumer purchasing decisions. Sparkling Wine, while smaller in comparison, has made notable gains in recent years, indicating a shifting landscape where bubbly options are becoming increasingly appealing among consumers. Other types of wine also share a portion of the market, but they remain far behind the Still Wine category in terms of overall popularity and sales volume. The growth trends for these segments reveal that Still Wine's dominance is largely due to its established presence and acceptance, rooted in tradition and craftsmanship. However, Sparkling Wine is emerging as the fastest-growing category, driven by changing consumer tastes favoring unique and celebratory drinking experiences. The trend is particularly pronounced among younger consumers and during special occasions, leading to innovations in flavors and production methods that further boost its appeal.

Still Wine (Dominant) vs. Sparkling Wine (Emerging)

Still Wine remains the dominant type in the Craft Wine Market, celebrated for its diverse range of styles and flavors that cater to various consumer preferences. Its robust presence is characterized by traditional winemaking techniques that evoke a sense of heritage and quality. Varietals like Cabernet Sauvignon and Pinot Noir have established loyal followings, underpinning Still Wine's position as the go-to choice for many consumers. In contrast, Sparkling Wine is an emerging segment that has captured the imagination of a younger demographic drawn to its festive and versatile nature. This category thrives on uniqueness, often integrating innovative production methods and flavor profiles that appeal to contemporary tastes. As Sparkling Wine continues to evolve, it is increasingly being positioned as a mainstream choice, not just for celebrations but also for casual drinking.

By Flavor: Red Wine (Largest) vs. Rosé Wine (Fastest-Growing)

In the Craft Wine Market, the flavor segment showcases a diverse and competitive landscape, with Red Wine commanding the largest share among consumers. Its rich, full-bodied characteristics appeal to traditional wine drinkers and enthusiasts, leading to a steady market presence. Meanwhile, Rosé Wine has been gaining traction, particularly among younger consumers seeking a refreshing alternative, resulting in its rapid growth within the segment. This shift signifies a changing preference in flavor profiles, with more consumers gravitating towards the versatility of Rosé options. The rise of Rosé Wine is driven by social media influence, innovative marketing strategies, and the introduction of unique blends, appealing to a broader audience. Craft wine producers have tapped into this trend by offering a variety of Rosé options, positioning themselves to capture market share and appeal to those looking for something new and exciting. The increasing popularity of outdoor gatherings and casual drinking occasions further propels the growth of both Red and Rosé varieties in the Craft Wine Market, reflecting changing consumer lifestyles and preferences.

Red Wine: Dominant vs. Rosé Wine: Emerging

Red Wine has long been the dominant flavor in the Craft Wine Market, celebrated for its depth, complexity, and tradition. This segment primarily consists of varietals such as Cabernet Sauvignon and Merlot, which appeal to connoisseurs and collectors. The sensory richness of Red Wine adds to its allure, often being paired with various cuisines, making it a versatile choice. On the other hand, Rosé Wine is viewed as an emerging segment that is redefining summer drinking, characterized by its lightness and fruity profiles that resonate with a younger audience. The innovative marketing and packaging of Rosé have created a fresh excitement around the category, helping to broaden its appeal beyond seasonal consumption. Together, these two segments reflect the dynamic nature of the Craft Wine Market, catering to diverse consumer tastes.

By Distribution Channel: On-trade (Largest) vs. Off-Trade (Fastest-Growing)

In the Craft Wine Market, the distribution channels are pivotal for market accessibility and consumer engagement. The On-trade channel, which includes bars, restaurants, and wine-tasting rooms, holds a significant share, showcasing strong consumer preferences for experiences tied to craft wine. In contrast, the Off-Trade sector, comprising retail sales through wine shops, supermarkets, and online platforms, is showing robust growth as consumers increasingly turn to convenient purchase options.

On-trade (Dominant) vs. Off-Trade (Emerging)

On-trade distribution is characterized by a focus on delivering unique consumer experiences that foster appreciation for craft wine. This channel nurtures relationships between producers and consumers through curated tasting experiences and food pairings. In contrast, the Off-Trade segment is emerging as a strong contender due to evolving consumer habits and a shift towards online shopping. This growing preference for off-trade experiences is driven by convenience, the availability of a wider selection, and the ability to explore craft wines in a retail environment. Both segments coexist, appealing to different consumer needs and preferences.

Get more detailed insights about Craft Wine Market

Regional Insights

North America : Craft Wine Market Innovation Hub

North America remains the largest market for craft wine, accounting for approximately 45% of the global market share. The region's growth is driven by increasing consumer preference for premium and artisanal products, alongside a rise in local wineries. Regulatory support for small producers and favorable trade policies further enhance market dynamics. The demand for organic and sustainably produced wines is also on the rise, contributing to market expansion. The United States leads the North American craft wine market, with California being the epicenter of production. Key players such as E. & J. Gallo Winery and Constellation Brands dominate the landscape, while numerous boutique wineries are emerging. The competitive environment is characterized by innovation in flavors and packaging, catering to a diverse consumer base that values quality and authenticity.

Europe : Heritage Meets Modern Trends

Europe is the second-largest market for craft wine, holding around 30% of the global share. The region's growth is fueled by a rich wine heritage, increasing interest in local and organic wines, and supportive regulations for small producers. Countries like France and Italy are at the forefront, with a growing trend towards craft and artisanal production. The European Union's policies promoting sustainable agriculture also play a crucial role in market dynamics. Leading countries in Europe include France, Italy, and Spain, where traditional wine-making practices are being revitalized by craft producers. The competitive landscape features established brands alongside innovative newcomers. Key players such as Pernod Ricard and Treasury Wine Estates are adapting to changing consumer preferences, focusing on quality and unique offerings to capture market share.

Asia-Pacific : Emerging Market with Potential

Asia-Pacific is witnessing rapid growth in the craft wine market, currently holding about 15% of the global share. The region's increasing disposable income, changing consumer preferences towards premium products, and a burgeoning wine culture are key growth drivers. Countries like Australia and China are leading the charge, supported by favorable regulations that encourage local production and importation of quality wines. Australia stands out as a significant player, with a strong presence of craft wineries and innovative marketing strategies. China is also emerging as a key market, with rising interest in wine consumption among younger demographics. The competitive landscape is evolving, with both local and international brands vying for market share, focusing on unique flavors and experiences to attract consumers.

Middle East and Africa : Untapped Market Opportunities

The Middle East and Africa region is gradually emerging in the craft wine market, currently holding about 10% of the global share. The growth is driven by increasing urbanization, a young population, and a growing interest in wine culture. Countries like South Africa are leading the market, supported by favorable climate conditions for wine production and a growing tourism sector that promotes local wines. South Africa is the dominant player in the region, with a rich history of wine production and a vibrant craft wine scene. The competitive landscape is characterized by a mix of established wineries and new entrants focusing on quality and unique offerings. Regulatory changes are also encouraging local production, making the region an attractive market for investment and growth.

Craft Wine Market Regional Image

Key Players and Competitive Insights

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.

Key Companies in the Craft Wine Market market include

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.

Craft Wine Market

Future Outlook

Craft Wine Market Future Outlook

The Craft Wine Market is projected to grow at a 5.2% CAGR from 2024 to 2035, driven by increasing consumer demand for premium products and sustainable practices.

New opportunities lie in:

  • Expansion into e-commerce platforms for direct-to-consumer sales.
  • Development of unique, limited-edition wine collections targeting niche markets.
  • Investment in sustainable vineyard practices to enhance brand reputation.

By 2035, the Craft Wine Market is expected to solidify its position as a leader in premium beverage offerings.

Market Segmentation

Craft Wine Market Type Outlook

  • Sparkling Wine
  • Still Wine
  • Others

Craft Wine Market Flavor Outlook

  • Red Wine
  • Rose Wine
  • White Wine

Craft Wine Market Distribution Channel Outlook

  • On-trade
  • Off-Trade

Report Scope

MARKET SIZE 202443.45(USD Billion)
MARKET SIZE 202545.71(USD Billion)
MARKET SIZE 203575.9(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.2% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing consumer preference for organic and sustainable practices in the Craft Wine Market.
Key Market DynamicsRising consumer preference for artisanal products drives innovation and competition in the Craft Wine Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Craft Wine Market as of 2024?

The Craft Wine Market was valued at 43.45 USD Billion in 2024.

What is the projected market valuation for the Craft Wine Market in 2035?

The Craft Wine Market is projected to reach 75.9 USD Billion by 2035.

What is the expected CAGR for the Craft Wine Market during the forecast period 2025 - 2035?

The expected CAGR for the Craft Wine Market during the forecast period 2025 - 2035 is 5.2%.

Which segment of the Craft Wine Market had the highest valuation in 2024?

In 2024, the Still Wine segment had the highest valuation at 29.45 USD Billion.

What are the projected valuations for the Sparkling Wine segment by 2035?

The Sparkling Wine segment is projected to reach 15.12 USD Billion by 2035.

How does the valuation of Red Wine compare to White Wine in 2024?

In 2024, Red Wine was valued at 17.38 USD Billion, while White Wine was valued at 15.73 USD Billion.

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