Global Champagne Market By Product (Prestige Cuvee, Blanc De Noirs, Blanc De Blancs, Rose Champagne, Brut Champagne, Demi-Sec), By Distribution Channel (On-Trade and Off-Trade), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global Champagne Market was valued at USD 7.2 billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 6.2%.

Champagne is commonly sparkling and white wine made in the old province of Champagne, France. Champagne is made from varieties of grapes and other flavors, such as apple, citrus, and almond. Demand for champagne is increasing due to the increase in restaurants, bars, and hotels.

Individuals worldwide are now spending more on special occasions such as achievements and weddings. Champagnes are becoming more popular worldwide due to their authentic flavors and tastes.   

Key Takeaways

1. Market Growth: The Champagne Market is expected to grow significantly, with the market size projected to reach around USD 12.9 billion by 2032. This marks a substantial increase from its 2022 value of USD 7.2 billion, and it is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.2% between 2023 and 2032.
2. Champagne Overview: Champagne is a sparkling white wine produced in the Champagne region of France. It is made from various grape varieties and is known for its unique flavors, including hints of apple, citrus, and almond.
3. Demand Drivers: The growing popularity of champagne can be attributed to changing lifestyles and the increased interest in vintage wines among consumers. The rise in the number of bars, restaurants, and hotels, as well as airlines offering champagne to business-class travelers, has contributed to its demand. People are also spending more on special occasions, contributing to the growth of the global champagne market.
4. Product Analysis: Blanc de Blancs is the dominant product segment in the champagne market. It is entirely made from white grapes and is appreciated for its natural acidity and unique taste. It held the largest revenue share in 2022, accounting for 25% of the market.
5. Distribution Channels: The off-trade segment, which includes wine shops and online retail, holds the largest revenue share in the champagne market. Dominant Segment The off-trade segment holds the largest revenue share in the champagne market, accounting for 75% of the market in 2022.
6. Opportunities: The champagne market presents opportunities driven by rising incomes and high demand. Manufacturers are continually adding new flavors to champagne, and airlines are serving champagne to luxury and business-class travelers. The trend of visiting bars and restaurants for casual drinking is also boosting champagne demand.
7. Trends: The young generation is contributing to the high demand for champagne, driven by trends in cocktail culture. Food tourism and luxury hotels are also influencing the market. Manufacturers are focusing on competitive pricing for raw materials and engaging in mergers, acquisitions, and partnerships for consolidation.
8. Regional Analysis: Europe is the most lucrative region in the global champagne market, with a significant market share of 64%. The United Kingdom, Belgium, France, and Germany are key markets in Europe. Asia Pacific is expected to witness the fastest growth due to rising populations and champagne consumption in countries like China, Japan, Hong Kong, and Australia.
9. Key Players: Prominent players in the champagne industry include Moët Hennessy USA, LANSON-BCC, Vranken – Pommery Monopole, Champagne Laurent-Perrier S.A.S., Pernod Ricard, Rémy Cointreau, The Centre Vinicole – Champagne Nicolas Feuillatte, Martel, Louis Roederer, Taittinger, and Champagne Krug, among others.

Drivers

Changing Lifestyles and the Popularity of Vintage Wines Among Consumers

Due to rapid urbanization, the number of bars and restaurants is continuously increasing. Key players are focusing on expanding research on wines and spirits. Popularity among vintage wines is increasing among consumers as their authentic flavors are expected to have a positive impact on market growth.

Airlines such as Lufthansa and Emirates have started offering vintage wines like champagne for business-class travelers. The lifestyles of individuals worldwide are changing, consumer awareness is increasing, and they are shifting towards a luxury lifestyle resulting in high demand for champagne.

Manufacturers in champagne markets are using organic, natural, ad vegan ingredients for consumer satisfaction, allowing growth in the champagne market. These days people are starting to spend more on casual drinking on birthdays, dinners, and office parties, which is the main growth factor of the global champagne market.

Also, the introduction of different flavors of champagne, such as peach, strawberry, and blueberry, is driving demand for champagne in the market. Strong growth of distribution channels in emerging economies is also fueling the market growth further.

Restraints

High Raw Material Costs and Health Issues

Manufacturing of champagne requires raw materials such as varieties of grapes, and their prices vary from time to time. These fluctuations in the prices of raw materials are the primary factors restraining market growth. Also, the high consumption of champagne has adverse health effects, which is expected to hinder the development of the market.

Product Analysis

The Blanc De Blancs Segment is Dominant

Based on product, the market for champagne is segmented into Blanc de Noirs, Blanc de Blancs, Prestige Cuvee, Rose Champagne, Brut Champagne, and Demi-Sec. The Blanc de Blancs segment was dominant in the market, with the largest revenue share of 25% in 2022, and is anticipated to hold the largest market share during the forecast period.

It is more popular among consumers as it has good natural acidity and a distinct taste. Blanc de Blancs champagne is entirely made from white grapes and therefore is called “whites of whites.” The Prestige Cuvee segment is expected to have the fastest growth rate during the forecast period owing to its wide varieties available in the market.

Distribution Channel Analysis

Off-Trade Segment is Dominant

On the basis of distribution channels, the market is classified into on-trade and off-trade. The off-trade segment was dominant in the market, with the largest revenue share of 75% in 2022, owing to high market visibility shops as key buying sources among consumers worldwide.

Wine shops are easy to reach for consumers, and the price of bottles is lower as compared to bars or restaurants. The off-trade segment is further classified into online and offline retail stores. The on-trade segment is anticipated to show rapid growth during the forecast period. The on-trade segment includes restaurants, pubs, and bars, which serve various drinks.

Key Market Segments

Based on Product

• Prestige Cuvee
• Blanc De Noirs
• Blanc De Blancs
• Rose Champagne
• Brut Champagne
• Demi-Sec

Based on Distribution Channel

• On-Trade
• Off-Trade

Opportunity

Rising Income and High Demand

Manufacturers in the champagne market are continuously working on adding new flavors to champagne. Individuals worldwide are spending more on special occasions, which is anticipated to create lucrative growth opportunities in the global champagne market.

Also, airlines started serving champagnes for luxury and business class travelers, which is expected to create growth opportunities in the market. With increasing numbers of hotels, restaurants, and bars, and increasingly hectic & stressful lifestyles, more and more individuals are visiting bars. This is anticipated to result in high demand for champagne in the global market.

Trends

High demand from the Young Generation and the Competitive Landscape of Manufacturers

The young population is inclined towards trends of cocktail culture, which is responsible for high demand among the young generation. Significant demand in food tourism and luxury hotels is a key trend in the market. Manufacturers in the champagne market are now more inclined toward raw material procurement at competitive pricing.

Raw material procurement involves engaging in long-term supply contracts with raw material suppliers. Companies in the champagne market are steadily moving toward consolidation through mergers & acquisitions, joint ventures, and collaborative partnerships.

Regional Analysis

Europe is estimated to be the most lucrative in the global champagne market, with the largest market share of 64%, and is expected to register the highest CAGR during the forecast period. The region’s growth is attributed to major factors, such as high product demand among consumers in the United Kingdom, Belgium, France, and Germany.

Also, in the United Kingdom, there are many bars and pubs which are convenient to reach. Major players in Europe such as Comite Champagne focused on product innovations attributed to market growth.

Asia Pacific is expected to fastest growth in the global champagne market during the forecast period owing to rising population and high product consumption in emerging economies such as China, Japan, Hong Kong, and Australia.  North America shows steady growth in the global champagne market.

Growing trends toward luxury lifestyles among elite consumers, increasing disposable income in North America, and increasing numbers of hotels and bars in the region are expected to increase the consumption of champagne and significantly expand the global market size.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Several key players are now focusing on different marketing strategies, such as spreading awareness about natural ingredients, which is boosting the target products’ growth.

Market Key Players

• Moët Hennessy USA
• LANSON-BCC
• Vranken – Pommery Monopole
• Champagne Laurent-Perrier S.A.S.
• Pernod Ricard
• Rémy Cointreau
• The Centre Vinicole – Champagne Nicolas Feuillatte
• Martel
• Louis Roederer
• Taittinger
• Champagne Krug
• Other Key Players

Recent Developments

• In April 2022, Champagne Krug, an LVMH brand, introduced two new varieties of champagnes, “Grande Cuvees” and “The Bollinger Style,” to celebrate a partnership.
• In February 2022, Champagne Louis Roederer launched its vintage version of champagnes, “Cristal.”

Report Scope