The UK wine market shrank in both value and volume sales in 2008 and the sector will have to wait until 2011 to see a recovery, according to new research from Mintel.

Wine sales slipped by 2% in volume and by 1% in value, to GBP9.6bn (US$15.8bn), last year, Mintel said today (12 June).

A cocktail of recession, a 17% duty tax rise and a weak sterling currency against the euro, as well as higher production costs and growing concern over excess drinking, has put the stoppers on years of consistent market growth.

"Mintel forecasts that the wine market will not recover in volume terms until 2011, but will increase by 4% up to 2014 to reach 1.18 billion litres," said the market research group in its Uk Wine 2009 report.

There was brighter news in the report for rosé wine, which increased its market value from GBP110m in 2004 to GBP527m in 2008. Rosé now has a 6% share of the country's wine market and could reach a value of GBP742m by 2014, Mintel said.

The firm said that its latest figures emphasise the need for wine firms to attract more young people.

"Once people join the wine "club" they tend to stay in it for life," said Jonny Forsyth, senior drinks analyst at Mintel.

"The problem for industry is getting people to join earlier. Despite being big drinkers generally, 25-34s are below average drinkers of wine. With wine seeing its first decline in volume and value for some time in 2008, it is increasingly important to target younger consumers effectively."