Wine: A Global Strategic Business Report
San Jose, CA (PRWEB) March 18, 2008
The underlying driving force for healthy consumption patterns is the recent medical research findings, which confirm the fact that moderate consumption of wine prevents heart disease, cancer, Alzheimer's disease as well as muscular degeneration. High publicity received by these findings is spurring consumption of wine at home and at horeca (hotels, restaurants and cafes) outlets, especially in non-wine producing countries. Growing disposable incomes, rising affluence and sophistication and the resultant consumer shift towards consumption of premium alcoholic beverages represent other major factors driving growth in the wine industry worldwide. Developing countries like Russia, China, Australia and India, to name a few, are expected to drive future growth in the market. Changing lifestyles in these countries, which mostly mimic Western lifestyles, is proving to be a major win for the growth in wine consumption. Previously, interest in wines was confined to middle-aged customers, today a growing base of younger consumers are exhibiting a marked preference for wine over other alcoholic beverages.
In the coming years, wine is set to make gains in both developed and emerging markets at the cost of other alcoholic beverages. Proliferation of new players, and focus on high voltage advertising and marketing campaigns are likely to intensify competition in the marketplace as players attempt to leverage their respective competitive position in the market. Increasing use of Internet and on-line sales of wines are also expected to provide excellent growth opportunities. Europe is the largest wine market in the world and consumption in this market is projected to cross 16.3 billion liters by the year 2015, as stated by a recent report published by Global Industry Analysts, Inc. Asia-Pacific is poised to emerge into the fastest growing region, mirroring the potential to grow at a CAGR of 4.6% over the period 2001 to 2010. Still wine market is the largest segment with consumption estimated at 20.9 billion liters in the year 2007.
New world wines are a major force to reckon with in the global wine industry and are providing stiff competition to wines from older world regions such as France, Spain, and Italy. Even though older world regions are still the leading global wine producers, rivals have progressed through large-scale production, clever marketing strategies, and competitive pricing. New and improved technology is also enabling producers from new regions such as Australia, California, and New Zealand to manufacture consistently good quality wines. Fortified wine market is projected to grow the fastest at a CAGR of 2.98% during the period 2011 to 2015.
Changing consumer demands and consumption patterns are increasingly challenging the global wine industry. Increased availability of wine in supermarkets is also spiking household wine consumption and demand shifts. In such a scenario, wine producers need to reposition their business to tackle fluctuating market demands. Retaining brand loyal consumers is another key challenge the producers face. Wine makers are therefore forced to track consumer tastes on a constant basis. Consumers, including women, are experimenting with new varieties of wine, instead of restricting themselves to the traditional grape wine. This has forced producers to be more innovative and offer a large variety of products for demanding customers.
Global wine makers are also reeling under intense price pressures, triggered by rising competition and global oversupply. These factors invariably push price downwards and eat into producer margins. Growing prominence of distribution networks is also aggravating pricing scenario, making competition more fierce. Consolidation is the key to the present and future of the global wine industry. Many players in the industry are on the lookout for growth through mergers, acquisitions, and joint ventures. The fragmented nature of the global wine industry fuels this strategy.
The report titled "Wine: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a comprehensive review of market trends, lifestyle trends, product overview, key producers of wine, product introductions/innovations, and recent industry activity. The study also analyzes market data and analytics in volume sales for regions such as United States, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World by the following product segments - Still Wine (Still Red, Still White, and Still Rose), Sparkling Wine, Fortified Wine, and Vermouth.
Key players dominating the global wine market include Bacardi Limited, Brown-Forman Corporation, Castel Group, Constellation Brands Inc., Robert Mondavi Winery, Hardy Wine Company, E.& J. Gallo Winery, Boizel Chanoine Champagne, Maison Burtin, Kendall-Jackson Wine Estates Ltd, LVMH Moët Hennessy - Louis Vuitton S.A., Remy Cointreau Group, Pernod Ricard Groupe, Pernod Ricard UK, Foster's Group Limited, Vina Concha y Toro, Australian Vintage Ltd, and Warburn Estate, among others.
For more details about this research report, please visit http://www.strategyr.com/Wine_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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