Champagne industry to uncork big growth in next decade

The champagne market is set to almost double in the next 10 years according to a report by Future Markets Insights (FMI). Champagne accounts for about 10% of the global alcohol market in 2022 and is currently worth $7 billion, but at a compound annual growth rate of just over 5% the market is expected to swell to $11.7 billion come 2032.

The FMI report ‘Champagne Market’ details how the market is set to change in the coming decade as the industry recovers from the impacts of COVID. The champagne market was heavily impacted by the pandemic, as the cessation of celebrations such as weddings and graduation ceremonies, where champagne would traditionally be served, saw sales slumping.

However, as lockdowns lifted and restrictions on large gatherings began to loosen, champagne sales have increased considerably. The market has also benefited from government support and incentives.

Additionally, responses to the pandemic that saw retailers providing home delivery services have resulted in a healthy residential market for champagne, though this is predicted to see lower sales at restaurants and cafes. Additionally, as consumers are increasingly interested in personal health, low-alcohol versions of the drink are becoming more popular.

The FMI report also notes that sustainable packaging will be important for the champagne market in the coming decade as consumers become more sensitive to the environmental impacts that their purchases have, and brands that focus on their sustainability are expected to benefit in the long run.

While economically priced champagne holds the highest market share, premiumisation will prove valuable for producers and thus high-end products will remain popular in the coming decade.

The full report is available for purchase online.

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