The Champagne market is expected to register growth at a CAGR of 5.08 per cent and reach a valuation of US$11.7 billion by 2032 according to a study from Future Market Insights (FMI).

The Champagne industry suffered from initial set back due to pandemic as spread of virus resulted in delays in shipment, rise in packaging cost, and scarcity of containers.

However, after the first wave subsidised and majority of the population around the globe was vaccinated the industry bounced back due to government support and incentives.

There has been a considerable increase in the number of brands and retailers offering wide varieties of alcoholic beverages, the only distinction they can emphasise on is product diversification and key players are focusing on developing niche products, specific to consumer requirements.

This is expected to propel the demand for alcoholic beverages globally which in turn will impact sale of Champagne.

The pandemic affected in-store sales severely and to overcome distancing rules, companies developed their online portals and delivered Champagnes at consumer doorsteps.

Even as the situation bounces back, many distributors are predicted to change their business model by partnering with on-demand services that procure alcohol from stores and deliver it to customers.

There is increase in consumption of Champagne in home premises. As people are spending more time indoors, they are expected to order premium quality Champagnes from e-commerce sites – reducing café and restaurant-based alcohol consumption.

A surge in consumer spending capacity in regions such as North America, Europe, and Asia also has made it possible for customers to splurge on Champagne during celebrations.

Consumption of low alcoholic Champagne is also witnessing high growth as consumers are shifting toward healthy drink options, which is expected to encourage sales of low-alcohol champagne during assessment period.

Key Takeaways from Market Study

• The Champagne market is expected to increase at CAGRs of 5.1% and 5.3% in North America and the Europe, respectively, through 2032.
• Market share of Latin America and Oceania is 4.5% and 4%, respectively, in 2022.
• The Europe Champagne market is expected to reach US$1.6 billion.
• Growing customer preference for healthy and nourishing beverages will help drive the sale of low alcohol Champagne.
• By price range, economically priced champagne holds the highest market share and is expected to increase at a CAGR of 6.0%.

“Manufacturers of champagne will considerably gain from targeting the niche product and consumer segments in alcoholic beverages industry. Consumer preference for nourishing drinks is expected to impact the demand for low alcoholic beverages around the globe,” according to a Future Market Insights (FMI) analyst.

Key manufacturers of Champagne are majorly focusing on research & development to offer different varieties of alcoholic beverages. Permiumisation is expected to contribute maximum revenue generation through sale of Champagnes. As key players focus on offering different styles according to customer preference to stand out in the competition.

Another trend that is prevalent in the Champagne market is consumer preference for sustainable packaging.

Consumers are more sensitive towards adverse impacts on environment that are choosing brands that follow sustainable practices throughout their supply chain. Brands that focus on these aspects could benefit in long run.

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