HYDERABAD, India, March 22, 2022 /PRNewswire/ -- COVID-19 had an adverse impact on the majority of the industries and the impact was much more severe on the restaurant and hospitality sector. Luxury or fine wines are generally bought by dining venues such as restaurants and hotels, whose revenues have significantly decreased during the pandemic. Since the pandemic affected restaurants and hotels business, the sale of luxury wines and spirits decreased dramatically through these channels. The market has bounced back in 2021 but has not reached to pre-pandemic level.
The way forward: Recovery funds from wines & spirits manufacturers and investment in digital infrastructure could revive the growth
According to an estimate, a large chunk of the restaurants (up to 60%) was closed permanently due to COVID and may never re-open, while others may need financial support to re-open. As this is the primary distribution channel for the majority of the wine manufacturers, few companies are coming forward to help them. For instance, in June 2020, Diageo plc launched a USD 100 million recovery fund to help pubs and bars welcome back customers after lockdown.
Furthermore, companies are investing heavily in digital infrastructure to boost direct-to-consumer (DTC) sales and compensate for revenue loss from restaurants. According to Liv-Ex, about 80% of the people involved in the wine business expect that technology will make buying fine wine easier in the next five years.
Market Overview:
According to ReAnIn, the global luxury wines and spirits market was valued at USD 76,219.4 million in the year 2021 and is projected to reach USD 104,493.4 million by the year 2028, registering a CAGR of 4.8% during the forecast period. According to this report, the market has bounced back in 2021 and will reach to pre-pandemic level by the end of 2022. An increase in luxury travel, ease in restriction for restaurants and hotels, and improving disposable income is expected to be the primary contributors to this bounce-back.
Download free sample: Global Luxury Wines And Spirits Market Growth, Share, Size, Trends and Forecast (2022 - 2028)
Key Highlights of the Report:
- Whiskey represents the majority (more than 33%) of the share in the global luxury wines and spirits market, followed by cognac in 2021; and is expected to witness the highest CAGR during the forecast period (2022-2028)
- Open (private) channel is the primary distribution channel accounting for more than two-thirds of the global market; While revenue contribution was highest from ultra-luxury wines priced at more than USD 2,500
- Restaurants, the primary distribution channel, were either closed or operating at lower capacity during the pandemic which has resulted in the contraction of the market
- The pandemic has forced companies operating in this market to look for new distribution channels and strengthen their positioning by investing more and more in digital/online infrastructure.
Access the report description on: Global Luxury Wines And Spirits Market
Market Segmentation:
ReAnIn has segmented the global luxury wines and spirits market by:
- Product Type
- Champagne
- Cognac
- Wine
- Whiskey
- Rum
- Vodka
- Distribution Channel
- Open (Private)
- Closed (Government)
- Price
- USD 50-80
- USD 81-250
- USD 251-2,500
- More than USD 2,500
- Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Competitive Landscape
The global luxury wines and spirits market is dominated by a few leading players such as Pernod Ricard, Diageo, Edrington Group, LVMH, and Remy Martin; these five companies combined account for more than 50% of the market share. Other prominent players in this market are Bacardi, Beam Suntory, William Grant & Sons, Terlato, Davide Campari-Milano N.V., Brown-Forman, United Wines, and Thai Beverage Plc.
Access full report on: Global Luxury Wines And Spirits Market
About ReAnIn
ReAnIn provides end-to-end market research services which span across different support areas such as syndicated market research reports, custom market research reports, consulting, long-term engagement, and flash delivery. We are proud to have more than 100 Fortune 500 companies in our clientele. We are a client-first organization and we are known not just for meeting our client expectations but for exceeding them.
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