Grape Wine Spirits Market

The global grape wine spirits market is anticipated to experience growth over the next eight years, with a projected increase in market volume and value by 2030. The United States is identified as the largest consumer and producer of grape wine spirits, showing consistent growth in both consumption and production. The market performance is forecasted to accelerate, with an expected CAGR of +2.5% in volume and +4.8% in value from 2022 to 2030. Import and export trends also vary among countries, with Singapore standing out for its high export prices and Portugal for its low export prices.

Market Forecast

Driven by increasing demand for spirits obtained from distilled grape wine or grape marc worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +2.5% for the period from 2022 to 2030, which is projected to bring the market volume to 3.9B litres by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.8% for the period from 2022 to 2030, which is projected to bring the market value to $62.3B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Spirits Obtained From Distilled Grape Wine Or Grape Marc

In 2022, the amount of spirits obtained from distilled grape wine or grape marc consumed worldwide contracted slightly to 3.2B litres, almost unchanged from 2021. The total consumption volume increased at an average annual rate of +1.2% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. The pace of growth appeared the most rapid in 2016 with an increase of 8.6%. Over the period under review, global consumption reached the maximum volume at 3.2B litres in 2019; afterwards, it flattened through to 2022.

The global grape wine spirits market value amounted to $42.8B in 2022, stabilizing at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.5% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The pace of growth appeared the most rapid in 2016 with an increase of 5%. Global consumption peaked in 2022 and is expected to retain growth in the immediate term.

Consumption By Country

The United States (1.6B litres) remains the largest grape wine spirits consuming country worldwide, accounting for 50% of total volume. Moreover, grape wine spirits consumption in the United States exceeded the figures recorded by the second-largest consumer, China (336M litres), fivefold. The third position in this ranking was held by India (136M litres), with a 4.3% share.

In the United States, grape wine spirits consumption increased at an average annual rate of +2.8% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: China (+2.2% per year) and India (+1.4% per year).

In value terms, the United States ($21B), China ($11.3B) and India ($1B) were the countries with the highest levels of market value in 2022, together comprising 78% of the global market. Russia, Spain, Indonesia, the Philippines and Ukraine lagged somewhat behind, together accounting for a further 2.8%.

The Philippines, with a CAGR of +27.1%, recorded the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of grape wine spirits per capita consumption was registered in the United States (4.7 litres per person), followed by Spain (1.5 litres per person), Ukraine (1.1 litres per person) and Russia (0.9 litres per person), while the world average per capita consumption of grape wine spirits was estimated at 0.4 litres per person.

From 2012 to 2022, the average annual growth rate of the grape wine spirits per capita consumption in the United States stood at +2.1%. In the other countries, the average annual rates were as follows: Spain (+6.7% per year) and Ukraine (-7.8% per year).

Production

World Production of Spirits Obtained From Distilled Grape Wine Or Grape Marc

In 2022, global production of spirits obtained from distilled grape wine or grape marc reached 3.1B litres, almost unchanged from the year before. In general, production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 with an increase of 8.8% against the previous year. As a result, production reached the peak volume of 3.2B litres. From 2017 to 2022, global production growth remained at a somewhat lower figure.

In value terms, grape wine spirits production rose slightly to $43.5B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.6% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2016 with an increase of 7.5%. Global production peaked in 2022 and is likely to see gradual growth in the immediate term.

Production By Country

The United States (1.5B litres) constituted the country with the largest volume of grape wine spirits production, comprising approx. 50% of total volume. Moreover, grape wine spirits production in the United States exceeded the figures recorded by the second-largest producer, China (300M litres), fivefold. The third position in this ranking was taken by France (200M litres), with a 6.6% share.

In the United States, grape wine spirits production expanded at an average annual rate of +2.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: China (+2.2% per year) and France (-0.3% per year).

Imports

World Imports of Spirits Obtained From Distilled Grape Wine Or Grape Marc

In 2022, the amount of spirits obtained from distilled grape wine or grape marc imported worldwide declined modestly to 622M litres, falling by -4.1% against the year before. The total import volume increased at an average annual rate of +2.7% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2016 when imports increased by 41% against the previous year. Over the period under review, global imports hit record highs at 648M litres in 2021, and then reduced slightly in the following year.

In value terms, grape wine spirits imports declined slightly to $7.4B in 2022. The total import value increased at an average annual rate of +3.2% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2021 with an increase of 33%. As a result, imports attained the peak of $7.5B, and then reduced in the following year.

Imports By Country

In 2022, Russia (125M litres), followed by the Philippines (82M litres), the United States (72M litres), China (38M litres) and France (30M litres) represented the major importers of spirits obtained from distilled grape wine or grape marc, together achieving 56% of total imports. Ukraine (27M litres), Portugal (20M litres), the UK (19M litres), Spain (17M litres), Singapore (16M litres), Germany (14M litres), Belgium (13M litres) and the United Arab Emirates (12M litres) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Belgium (with a CAGR of +26.2%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($2.2B), China ($1.4B) and Singapore ($869M) appeared to be the countries with the highest levels of imports in 2022, together accounting for 61% of global imports. Russia, the United Arab Emirates, the UK, the Philippines, Germany, France, Ukraine, Spain, Belgium and Portugal lagged somewhat behind, together comprising a further 17%.

Among the main importing countries, the Philippines, with a CAGR of +27.4%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average grape wine spirits import price stood at $12 per litre in 2022, surging by 2.8% against the previous year. In general, the import price showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 an increase of 27% against the previous year. Global import price peaked at $12 per litre in 2014; however, from 2015 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Singapore ($53 per litre), while the Philippines ($1.4 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Singapore (+3.7%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Spirits Obtained From Distilled Grape Wine Or Grape Marc

In 2022, global exports of spirits obtained from distilled grape wine or grape marc dropped slightly to 507M litres, waning by -1.9% on the previous year. In general, exports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2016 when exports increased by 42% against the previous year. As a result, the exports reached the peak of 635M litres. From 2017 to 2022, the growth of the global exports remained at a lower figure.

In value terms, grape wine spirits exports fell to $7B in 2022. Over the period under review, exports, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 with an increase of 29%. As a result, the exports reached the peak of $7.6B, and then reduced in the following year.

Exports By Country

France represented the key exporting country with an export of around 201M litres, which reached 40% of total exports. Armenia (98M litres) took a 19% share (based on physical terms) of total exports, which put it in second place, followed by Spain (8.7%) and Georgia (6.7%). Singapore (14M litres), Italy (11M litres), Moldova (11M litres), Portugal (11M litres), Germany (10M litres) and South Africa (9.7M litres) followed a long way behind the leaders.

France experienced a relatively flat trend pattern with regard to volume of exports of spirits obtained from distilled grape wine or grape marc. At the same time, Portugal (+9.7%), Armenia (+8.4%), Georgia (+8.1%) and South Africa (+1.4%) displayed positive paces of growth. Moreover, Portugal emerged as the fastest-growing exporter exported in the world, with a CAGR of +9.7% from 2012-2022. Germany experienced a relatively flat trend pattern. By contrast, Moldova (-2.3%), Singapore (-3.8%), Spain (-7.6%) and Italy (-9.5%) illustrated a downward trend over the same period. Armenia (+11 p.p.), France (+4.4 p.p.) and Georgia (+3.7 p.p.) significantly strengthened its position in terms of the global exports, while Italy and Spain saw its share reduced by -3.6% and -9.9% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, France ($4.3B) remains the largest grape wine spirits supplier worldwide, comprising 62% of global exports. The second position in the ranking was taken by Singapore ($950M), with a 14% share of global exports. It was followed by Armenia, with a 3.9% share.

In France, grape wine spirits exports expanded at an average annual rate of +2.6% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Singapore (-0.1% per year) and Armenia (+5.3% per year).

Export Prices By Country

The average grape wine spirits export price stood at $14 per litre in 2022, dropping by -5.8% against the previous year. Over the last decade, it increased at an average annual rate of +1.1%. The pace of growth was the most pronounced in 2017 when the average export price increased by 28% against the previous year. The global export price peaked at $15 per litre in 2021, and then contracted in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Singapore ($70 per litre), while Portugal ($2.2 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Italy (+4.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform