The global champagne market will be worth $11.7 billion (€11.25 billion) in ten years' time, according to new data from Future Market Insights (FMI).
The champagne sector is set to grow at a CAGR of 5.08% between now and 2032, the data found, with North America showing a CAGR of 5.1% and Europe a CAGR of 5.3%.
Keenly-priced champagnes are likely to outperform the wider market, increasing at a CAGR of 6.0% over the ten-year period, FMI said.
At the same time, however, premiumisation is expected to contribute the most revenue generation over the coming years.
Niche Product Segment
“Manufacturers of champagne will considerably gain from targeting the niche product and consumer segments in the alcoholic beverages industry," a Future Market Insights analyst said.
Other notable trends that are likely to shape champagne sales over the next decade include increased online sales, which was largely driven by the pandemic – even as restrictions ease, champagne vendors and sales outlets are likely to adopt an omnichannel approach.
FMI also suggests that restaurant and out-of-home consumption is likely to decrease in the coming years, with at-home celebrations accounting for a wider share of the market.
Another trend that is prevalent in the champagne market is consumer preference for sustainable production techniques as well as packaging, it added, noting that brands that follow sustainable practices through their supply chain are expected to benefit in the long run.
Record Sales In 2021
In February, Union des Maisons de Champagne (UMC), which represents the champagne sector, reported that sales reached an all-time high last year, driven by the relaxation of pandemic-related restrictions and higher exports.
Sales in 2021 reached $5.7 billion (€5.05 billion), 14% above the pre-pandemic high, UMC said.