Champagne Market Size, Share, Growth, and Industry Analysis, By Type (Non-vintage, Vintage Millésime, Cuvée de prestige & Blanc de Blancs), By Application (Airport & Airplane), and Regional Insights and Forecast to 2032

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CHAMPAGNE MARKET OVERVIEW

The Champagne Market size valued at approximately USD 8.8 billion in 2024 and is expected to reach USD 15.3 billion by 2032, growing at a compound annual growth rate (CAGR) of about 7.1% from 2024 to 2032.

The global Champagne market has expanded over the last few decades owing to the high demand for this prestigious sparkling wine whose origins are celebrated. Born in the Champagne province of France, Champagne is a sparkling wine produced by the Methode champenoise, where the primary fermentation of the wine occurs and a secondary fermentation takes place within the bottle, creating bubbles in the drink. Due to protective appellation regulations, only the wines produced from this region can be labelled as ‘Champagne'. With the growing prosperity across the world and the use of Champagne during special events more and more, the market is likely to maintain growth as it spreads across various demographics and regions.

COVID-19 IMPACT

"Champagne Industry Had a Negative Effect Due to Lockdowns and Reduced Celebrations during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic affected the performance of the Champagne market adversely, as even global sales fell significantly because of imposed restrictions on social activities and celebrations. It has been observed that with COVID-19, where people stay confined to their homes, big events such as weddings and parties that usually increase the demand for Champagne were cancelled; thus, the sales for Champagne in the hotels and hospitality industry fell sharply. There were also challenges in exports that restricted the growth of the exports in some of the important markets. This time also showed how events and festive consumption were the main drivers of the Champagne market, which had consequences for producers and distributors in losses.

LATEST TREND

"Growing environmental awareness drives market growth in sustainable consumption"

The increasing environmental awareness of consumers is one of the factors that has contributed to the growing popularity of sustainable and organic Champagnes, which is one of the recent trends in the Champagne industry. As a result, many producers are embracing green practices and reducing the use of chemicals in the vineyards while also emphasizing biodynamic practices to target this new audience. This transformation also brings about an expansion of e-commerce and a growing interest in high-end and/or vintage selections. The changing consumer preferences toward sustainable Champagne is indicative of a larger sociological trend away from hedonistic consumption towards more mindful and ecologically sustainable luxury markets.

CHAMPAGNE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Non-vintage, Vintage Millésime, Cuvée de prestige & Blanc de Blancs

• Non-vintage: Non-vintage Champagne tends to be a blend of various wines from different years in order to maintain an even consistency in taste and quality regardless of the changes that occur each year. It is evident that the greatest percentage of the Champagne market is within reach due to its cheapness and ease. In addition, non-vintage bottles are convenient and suitable for use on every occasion and on a regular basis.

• Vintage Millésime: Vintage Millésime champagne is designed from grapes gathered in a specific outstanding year and, in this way, captures the particular terroir of this particular year. It is usually aged longer and more complex and nuanced in flavou. Vintage Champagne is also scarce, unlike other champagne, and it's usually kept for special events because of its premium nature.

• Cuvée de Prestige: Cuvée de Prestige is defined as a special Champagne usually ordered by the house; only this time the best grapes have been selected and the Champagne has been stored for the longest. Its taste and exclusivity are responsible for making this type of champagne packed in special bottles. Such prestige cuvées are on the higher side in pricing, making them limited to certain buyers.

• Blanc de Blancs: Blanc de Blancs Champagne strictly uses Chardonnay grapes, resulting in light weight characteristics, a dry, crisp taste, and a more refined drink. It is largely appreciated because of its delicate approach and mineral quality, which attracts a lot of its fans. Seafood is well complemented with Blanc de Blancs and is tailored to sophisticated drinkers.

By Application

Based on application, the global market can be categorized into Airport & Airplane

• Airport: Duty-free shops, especially in airports, are considered a strong selling proposition for Champagne where travellers can buy it at a more appealing price compared to the retail prices in other stores. Airport shopping is often convenient and exclusive; therefore, it is common to see gift purchases, including Champagne, done at the last minute. Given the resumption of international travel, airports still contribute meaningfully to the sales of Chassagne.

• Airplane: Enjoying Champagne onboard is a norm in first-class and business-class settings; this aims at augmenting the travel experience for the respective passengers. Usually, airlines tend to use certain esteemed Champagne brands for their flights in order to enhance the experience of the passengers, making the rocket journey more enjoyable. This service in turn also helps in the traveller’s perception of Champagne as a luxurious carbohydrate drink associated with some special events.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Luxury perception of the product drives market growth in high-end consumption"

Luxury is often synonymous with Champagne, and this resonates with the growing trend amongst consumers to go for more expensive drinks. This is attributed to the growing rich population and a change in culture that seeks to celebrate events with expensive drinks. Therefore, the images of Champagne as a luxury product are stimulating Champagne Market Growth.

"Globalization and cultural adoption drive market growth in regions"

Globalization of the joyous events has in turn seen the growth of the market for Champagne to other regions where it is now gracing different events and occasions. Markets in which western styles of celebration are being adopted are experiencing growth in Champagne consumption, particularly in Asia Pacific and Latin American zones. The elements of the market’s expansion across more varying cultures are also another factor that contributes towards the growth of the market.

Restraining Factor

"Economic downturns reduce market growth due to reduced demand"

Since champagne is often sold at a premium, it tends to be affected adversely during periods of economic downturn as most consumers tend to reduce their spending on other luxuries like champagne. When the economy is unstable, the possibility of even a substantial demand reduction exists, notably in the case of markets dealing with low prices. For this reason, the demand for Champagne is highly elastic to recession and financial distress and hence cannot be sustained for long periods.

Opportunity

"Sustainable and organic production drives market growth in luxury"

The recent opportunity for growth in the Champagne market is the growing market for sustainable and organic products. Due to the awareness of environmental issues, consumers are looking for organized production with less chemistry in processing Champagne. Therefore, the more organic and biodynamic viticulture is adopted, the easier it is to access this segment of the market. It is a situation that is also in line with the existing trends in global luxuries, therefore creating an important market for growth.

Challenge

"Market growth faces competition from affordable sparkling wine alternatives"

Emerging sector of the Champagne market presents substantial growth opportunities but at the same time faces a number of challenges, such as eminent threat from rival sparkling wines, proportional to Prosecco, Cava, and other intakes. Their associates are usually modestly priced, which appeals to a larger base, including the youthful population, who can go for cheaper options as a celebration. Such alterations compel even the Champagne producers to vindicate the rationale behind the high cost of their products as well as the need to make sure their product is not similar to any other and also make their product. Moreover, it is not so much the competition from substitutive products, baby boomers only, that may be the cause of this pressure.

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CHAMPAGNE MARKET REGIONAL INSIGHTS

• North America

"North America's market growth driven by high-income U.S. consumers"

North America holds the largest Champagne Market Share owing to the United States and Canada being one of the largest markets for Champagne, which is considered quite luxurious and is utilized for various kinds of celebratory occasions. The CAGR of the United States Champagne Market has managed to remain positive over the past years owing to the changes in demographics as more and more high-income consumers develop an appetite for premium mass-vintage Champagne products. The dynamic wine environment within the country as well as the improved distribution channels of the product are other factors bolstering this growth. Being the most populous country in North America, the U.S. is the highest consumer and importer of Champagne.

• Europe

"Europe dominates market growth, driven by France and neighbouring countries"

The Champagne market is widely dominated by Europe, with France being the leading producer and market for Champagne, making it a regional driver. The centre of production continues to be in the Champagne region, and the culture of wine in the European Union quite encourages consumption. The UK, Germany, and Belgium are a few key markets for Champagne with valuable exports. Champagne as a product is made in Europe, experiencing a high number of celebrations and events and people spending on luxurious items.

• Asia

"Asia's market growth driven by rising incomes and cultural shifts"

Asia is also a nascent and growing cake for Champagne, with more demand coming from Japan, China, and South Korea, where the western culture is fast catching with the people. The increase in incomes and changes in the lifestyles of people, especially the youth, is the reason why most of them are buying Champagne in this region. There are those countries and societies that associate consumption of wines and champagnes with class and/or wealth, Japan and China, for example. This is because as these societies evolve, there are more consumers who wish to experience different things, and consumption of champagne rises in such societies.

KEY INDUSTRY PLAYERS

"Key brands drive market growth through innovation, premiumization, expansion"

Some of the key players in the Champagne market, such as Moët & Chandon and Veuve Clicquot Dom Pérignon, are witnessing the progress owing to innovation in products, premiumization of their offerings, and the coverage of their distribution networks. Their good strategy, geographical expansion, adopting an eco-friendly business model, and the development of new countries all contribute to increasing the needs. Champagne is also marketed aggressively through events that associate it with history and glamour.

List of Top Champagne Companies

• Moet & Chandon (France)
• Nicolas Feuillatte (France)
• Veuve Clicquot (France)
• Laurent Perrier (France)
• Dom Perignon (France)

KEY INDUSTRY DEVELOPMENTS

June, 2024: Laurent-Perrier has commercialized "Heritage", a range of wines that is a multi-vintage blend situated in the hierarchy between their regular non-vintage champagne and premium products. This innovation is intended to draw in consumers and boost purchase frequency.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.