Trends Shaping the Wine Industry

COVID-19-related trade restrictions have sparked a number of new wine industry trends and accelerated others. Glenneis Kriel reports on the preferences of consumers.

- By Glenneis Kriel

The COVID-19 pandemic has dealt the wine industry a severe blow, locally and internationally, with beer, cider and wine sales in 2021 remaining below 2019 pre-crisis levels, according to Lulie Halstead, CEO of Wine Intelligence. Halstead, who spoke at the recent Nedbank Vinpro Information Day hosted at Allée Bleue near Franschhoek in the Western Cape, identifies ready-to-drink (RTD) alcohol products as the exception to this.

RTD products have grown faster than any other major drinks category since 2018, according to the International Wine and Spirits Record (IWSR). In a report published in October last year, IWSR states that RTD products are expected to continue outperforming the wider beverage alcohol market over the next five years, increasing their market share from 4% in 2020 to 8% by 2025 in top RTD markets.

In the 10 markets under evaluation, RTD products are stealing market share from beer in general, attracting spirits consumers in Australia and the UK, and cider drinkers in South Africa, with flavoured alcoholic beverages being the main drivers of growth in Brazil, China, Japan and South Africa, according to the IWSR.

Halstead identifies a significant trend towards premiumisation in the RTD category as more brands enter the space, particularly in the spirit-based and increasingly in the wine-based categories, which is good news for the wine industry.

LOW-ALCOHOL DRINKS

Moderation, caused by a growing interest in health and well-being, is contributing to the shrinking of the regular wine-drinking population, while boosting the demand for no- and low-alcohol products.