The UK wine market

Wine sales have grown 25 per cent in the last 5 years and are predicted to grow 19 per cent by 2008.(Mintel 2005) The UK market is the largest in Europe; second globally to the US, with an annual consumption of 103.7 million cases (9 litre cases) and a turnover of £6.225 billion. The UK market leads the world for the diversity of wines offered.

Wine is the UK's favourite alcoholic beverage for home consumption. Current market research shows wine has overtaken beer as a bigger brand category in UK supermarkets, second only to soft drinks as a percentage of grocery sales.

Australian and French wines account for 21.5 per cent and 16.9 per cent share of the market by volume respectively. The fastest Mat growth rates are being seen in Australia (10.6 per cent), USA (14.8 per cent) and New Zealand (56.4) The average price of a bottle of wine is £3.85 with the highest average bottle prices being seen with Australian wine at £5.86 (AC Nielson Dec 2005).

The Consumer

According to the Mintel report on UK wine drinking 2005, the UK consumer is drinking more wine and trading up — the wine market is predicted to continue in strong positive growth.

• Two thirds of the population have consistently drunk wine since 2000 and are drinking more.
  
• The 35 plus age range are the key consumers of wine, with the older age brackets (45-64 year old) showing the greatest predicted growth by 2008.
  
• 82 per cent of ABs drink wine, with 44.8 per cent of these classified as heavy drinkers — a category that is increasing and drinking more.
  
• Age is a key driver of growth with wine buying being directly influenced by affluence and personal disposable income — both of which are growing.
  
• Brand development is driving customer penetration.