High-quality local wine is winning awards and gaining demand.
London, United Kingdom (PRWEB) November 09, 2012
Much to the surprise and envy of its European rivals, the UK Wine Production industry is booming. According to IBISWorld industry analyst Steven Connell, “during the past five years, the industry enjoyed robust growth, with vineyard acreage increasing by 50% and wine production more than doubling”. Warmer than average weather for much of the past decade improved grape yields and wine quality, helping winemakers produce sparkling wines that won a host of international awards. Interest in UK-produced sparkling wine has been helped by favourable weather conditions and rising demand for quality food and wine. Strong sales growth has driven new players to enter the industry and resulted in existing winemakers boosting production to meet demand. A strong year is forecast for 2012-13 as the London Olympics and a number of international wine awards create interest in English sparkling wines. Industry revenue is projected to increase a compound annualised rate of 3.2% over the five years to 2012-13 to reach £67.2 million. Revenue in 2012-13 represents growth of 8.0% from the previous year.
The Wine Production industry faces a bright future, with demand for UK-produced wine expected to grow strongly over the next five years. Connell adds, “locally produced sparkling wine has a growing reputation on the world stage”. Renewed consumer interest in local produce, environmental opposition to products with high wine miles, and improving quality and distribution should also lead domestic consumption of UK wine to grow strongly. IBISWorld expects the industry to reach a state of oversupply by 2014-15, but solid growth in exports should help fill this gap and the industry will continue to grow.
The Wine Production industry displays a low level of market share concentration. The top four producers account for less than 15% of industry revenue in 2012-13. Major companies include Denbies Wine Estate, English Wines Group and Nyetimber Vineyard.
For more information on the Wine Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Participants in this industry produce wine from wine grapes. Grapes are either purchased or grown and harvested on estate. Products include still and sparkling wine of red and white varieties, and fortified wines such as port and vermouth. Brandy is not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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