Craft Wine Market

Increased production of craft wine and the changing preferences of consumers are driving the market growth.

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.

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 Global Craft Wine Market Industry benefits from a diverse range of product offerings that cater to various consumer preferences. Craft wineries produce an array of wines, including red, white, rosé, and sparkling varieties, often experimenting with unconventional grape varieties and blends. This diversity not only attracts a wide audience but also encourages consumers to explore new flavors and styles. As the market continues to evolve, the introduction of limited-edition releases and seasonal offerings may further enhance consumer interest. The ability to provide unique and varied products positions craft wineries favorably within the competitive landscape, fostering growth and consumer engagement.

Wine tourism emerges as a significant driver within the Global Craft Wine Market Industry, as more consumers seek immersive experiences that combine travel with wine appreciation. Regions known for craft wine production, such as Napa Valley in the United States and Tuscany in Italy, attract millions of visitors annually. This trend not only boosts local economies but also enhances brand visibility for craft wineries. The increasing popularity of wine festivals and vineyard tours contributes to the market's growth, as tourists often purchase craft wines directly from producers. As wine tourism continues to flourish, it is expected to bolster the craft wine segment, fostering a deeper connection between consumers and producers.

The Global Craft Wine Market Industry is poised for substantial growth, with projections indicating a market size of 43.2 USD Billion in 2024 and an anticipated increase to 72.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 4.77% from 2025 to 2035. Such figures indicate a robust demand for craft wines, driven by evolving consumer preferences and market dynamics. The increasing interest in artisanal and locally produced wines is likely to sustain this growth, as consumers seek authentic experiences and products. As the market expands, it presents opportunities for both established and emerging craft wineries to capitalize on this upward trend.

Innovative marketing strategies significantly influence the Global Craft Wine Market Industry, as producers leverage digital platforms and social media to reach broader audiences. Craft wineries utilize storytelling and branding to create emotional connections with consumers, enhancing brand loyalty. The rise of e-commerce has also transformed how consumers purchase wine, allowing craft producers to sell directly to consumers. This shift is particularly relevant as the market anticipates a compound annual growth rate of 4.77% from 2025 to 2035. By embracing technology and creative marketing approaches, craft wineries can effectively engage with consumers, driving sales and expanding their market presence.

Sustainability plays a pivotal role in shaping the Global Craft Wine Market Industry, as consumers become more environmentally conscious. Many craft wineries adopt organic and sustainable practices, appealing to eco-friendly consumers who prioritize products with minimal environmental impact. This trend is evidenced by the increasing number of organic certifications among wineries, which enhances their marketability. As the market evolves, the demand for sustainably produced craft wines is likely to rise, potentially contributing to the projected market growth to 72.2 USD Billion by 2035. The emphasis on sustainability not only attracts a dedicated consumer base but also encourages innovation in production methods, further enriching the craft wine landscape.

The Global Craft Wine Market Industry experiences a notable shift towards quality over quantity among consumers. As wine enthusiasts increasingly seek unique and high-quality products, craft wines, which often emphasize artisanal production methods and local sourcing, gain traction. This trend is reflected in the projected market size of 43.2 USD Billion in 2024, indicating a robust demand for premium offerings. Consumers are willing to pay a premium for craft wines, which often feature distinctive flavors and regional characteristics. This growing preference for quality is likely to drive the market further, as producers adapt to meet the evolving tastes of discerning wine drinkers.

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, Market Research Future 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.