Abstract
About this report
In 2008, wine suffered its first volume and value decrease following several years of growth. Whilst the economic downturn has impacted on wine, Mintel believes it has accelerated the problems for wine, rather than being the root cause. A number of factors are working against wine. The market is increasingly reliant on supermarkets but their long-term strategy of discounting wine has intensified as a result of the recession, undermining the industry goal of getting people to trade up. Wine must also perform in the context of: a population that is drinking less; an increasing interest in healthy living; government and media-fuelled warnings about excessive drinking and obesity; high levels of duty; and rising manufacturing and raw material costs.
An opportunity to reverse the tide lies in addressing the confusion surrounding wine, as this acts as a barrier to entry for younger consumers, as well as discouraging more experienced drinkers from trading up. Rose is the one wine segment that is forecast to grow over the next five years, and is a particularly accessible way to attract younger drinkers into the category.
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