The Future Of Wine: Capitalizing On New Opportunities And Preferences - Market Research Report On Aa

Introduction

Introduction

Unlike the beer market, wine has not experienced a sustained decline and has continued to grow in value in some regions despite the economic crisis. Success in the market will be driven by appealing to the continuing growth of consumers' trading up tendencies in core markets while educating and heightening the appeal of wine among new consumers in emerging markets and younger demographic cohorts.

Scope

*Detailed insights and analysis documenting the drivers and inhibitors of the wine market

*Exclusive occasions, market and consumer survey data and analysis covering each category

*Strategic conclusions combined with actionable recommendations for all industry players looking to fully capitalize on this market

*Countries covered: France, Germany, Italy, the Netherlands, Spain, Sweden, UK, US, Australia, Japan, South Korea, China, India, Brazil, and Russia

Highlights

Alcohol sales growth is suffering from the affects of the global downturn, but longer term trends such as moderation for health or expenditure reasons are well established threats. The shift towards premiumization and a higher value/lower volume consumption pattern is set to continue but has lost momentum and is not forestalling the sales decline.

Health is one of the most significant trends influencing CPG brands in the present. Wine is best placed of the three main alcohol categories to capitalize on this, and regular moderate wine consumption has often been linked with health benefits. The industry has adapted further to this trend and lower alcohol wines have already seen some success.

Price and value-for-money are growing as influencing factors in what drinkers consume, where they consume and in what volume. The negative economic backdrop has clearly been a major motivator in this, and has further favored the off-trade over the on-trade.

Reasons to Purchase

*Consumer understanding: obtain a detailed understanding of consumer attitudes and behaviors towards wine

*Market understanding: identify the key wine markets and product innovation trends in 15 countries across four territories

*Ideation: find inspiration for innovative formulations and positioning that takes advantage of consumers' desires for premium and health attributes

Table of Contents :

Overview 1

Catalyst 1

Summary 1

Table of Contents 2

Table of figures 3

THE FUTURE DECODED 4

INTRODUCTION: Wine is beer's principal competitor in the global alcoholic drinks market 4

TREND: The overall alcoholic beverage market is defined by its maturity and the moderate consumption behaviors of consumers 4

Sales performance in the alcoholic beverages market highlights the contrast between the saturated, static markets of the West and the developing potential of key emerging markets 5

Trends in consumers' consumption occasions mirror the flat performance in sales volumes 8

Males remain the dominant gender in overall alcohol occasions, although female consumption is growing stronger 11

Alcohol consumption occasions decline with age as moderation behaviors rise and consumers' priorities shift 16

Moderation, driven by rising attentiveness to health issues, is increasingly characterizing many consumers' alcoholic beverage consumption behaviors 20

Moderation has also been influenced by economic circumstances, but consumers remain resistant to the concept of cutting back on alcohol for purely financial reasons 24

Alcohol abstainers: although a minority, those who never drink account for sizeable shares of LDA consumers 29

Key takeouts and implications: growth potential in the alcohol market will be centered on tapping new consumer groups and the sustenance of trading up behavior 34

TREND: Wine is a popular alcoholic beverages category that is not experiencing the same slow sustained decline seen in beer, cider & FABs 35

Wine sales figures show mixed fortunes, although the category is not in the middle of a sustained decline 35

Wine occasions are one of the key consumption occasions in the alcohol market but frequencies in some developed markets are falling 40

Although men typically enjoy more wine occasions, the category is not subject to the pronounced male bias seen in both beer and spirits 45

Wine consumption is still skewed towards older age groups 51

Categorization of wine consumers can cross typical demographic groupings with differing mindsets having important lessons for the industry 54

Key takeouts and implications: the outlook for wine remains more positive than that for other major categories despite the downturn 56

TREND: On and off-trade dynamics in the wine market: consumers' off-trade consumption is the fundamental driver of category sales 57

The shift in alcohol sales from the on-trade to the off-trade reflects a trend predating the global economic downturn 57

The economic climate is however influencing consumers' propensity to consume on-trade and also their product choices 63

Recent trends show increased motivation among consumers to consume off-trade 67

Time scarcity and related external pressures on alcohol consumption occasions adds impetus to the move to the off-trade 72

The frequency and location of on-trade consumption habits around the world underlines preferences for moderate relaxed drinking occasions 75

Consumers drink with greater frequency when at home than they do on-trade 80

Brand choice is being influenced by price both on and off-trade, although this is, perhaps surprisingly, more marked off-trade 84

The wine category is rooted in the off-trade in most key markets 90

Wine is less dependent on on-trade occasions than the overall alcohol market FINISH!!!!! 94

Particular pressures on the wine market in the off-trade stem from the so-called 'discount trap' 98

Key takeouts and implications: the strength of the off-trade in the wine market continues to offer a reasonable degree of security for the wine industry 100

INSIGHT: Changing consumer preferences in the wine market: food and health associations are strong points for wine 101

Some consumers are shifting between categories based on price and value-for-money considerations, but habit and experiential attributes remain highly important 101

Wine's continued success is heavily based on its strong association with eating 107

Wine's popularity by occasion type peaks when matched with food 109

Wine is a fundamentally social consumption experience, influencing its suitability for different types of occasions 118

The influence of health on alcohol choice: wine benefits from widespread awareness and acceptance of certain healthy attributes but still faces challenges in maintaining a credible healthy positioning 119

The popularity of lower alcohol versions of brands reflects both health awareness and the general trend for moderation, but presents problems for the wine market 124

Consumers' origin and style preferences within wine are influenced by quality, sensory and value factors 128

Distribution channel preferences among consumers are shifting in favor of supermarkets and convenience stores 130

The online channel is influencing consumers' purchase behavior and is a valuable tool in tracking their changing preferences 131

Authenticity is a growing consumer motivator and stronger point for the wine market 131

Key takeouts and implications: wine continues to capitalize on its association with eating and actively benefit from the moderation of non-food related drinking occasions 133

INSIGHT: Innovation trends in wine: upscale and natural/ethical halo claims lead in new product releases 134

Recyclable is the leading product claim associated with wine, underlining the growth of issues such as ethicality and sustainability in the market 135

Manufacturers have continued to focus on meeting the upscale/premiumization trend despite the economic crisis 137

Mature has emerged as a tag in wine as manufacturers and marketers embrace the core older consumer base more openly 139

Organic claims have become increasingly relevant as a premium measure, but 141

Private label wine releases have been given impetus by the economic backdrop and increased credibility among consumers 143

Key takeouts and implications: tracking the key consumer mega-trends is essential to directing innovation in the wine market 144

ACTION POINTS 145

ACTION: Build a compelling case for brand loyalty in the off-trade 145

ACTION: Be aware of the risks of discounting and promotions to post-recessionary sales and brand equity 147

Pursue approaches that offer price-conscious consumers more flexibility in their spending 149

Be measured in pricing strategies and educate consumers that less is not always better 150

ACTION: Target comfort-based and social occasions 150

ACTION: Look at inorganic growth opportunities through co-operation and consolidation 152

ACTION: Online distribution is a major opportunity for the wine industry 153

ACTION: Social Media presents opportunities for targeting younger wine drinkers 155

ACTION: Enhance approaches to effectively educate consumers 158

Make wine descriptions more useful to consumers 159

ACTION: Be ready for renewed trading up opportunities during the post-recessionary period 159

Maintain a strong focus on innovation and R&D during times of economic uncertainty 159

Start planning for the longer term by continually tracking consumers as an economic recovery begins to become a reality 160

APPENDIX 162

Methodology 162

Further reading and references 163

Ask the analyst 164

Datamonitor consulting 164

Disclaimer 164

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by: Aarkstore Enterprise

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