Research – Wine continues growth in UK in 2009

By | 15 January 2010

The UK consumer spent a record amount on wine in 2009

The UK consumer spent a record amount on wine in 2009

Wine consumers in the UK spent more than ever on their favourite beverage last year, according to recent research.

Wine represented 20% of all household spending on drinks last year and 28% of the alcohol market, market intelligence firm Key Note has calculated in its Wine Market Report Plus.

The UK market for wine experienced “steady growth” over the review period from 2005 to 2009, with a peak of 5.6% growth in 2007 and 1.3% growth in 2009 despite the recession. While beer continues to be the larger market, the long-term trend is towards drinking wine, almost all of which has to be imported. In 2009, the UK wine market is estimated to be worth GBP11.65bn (US$18.82bn), having grown in value by 13.4% over the last five years.

A survey of 992 UK adult consumers found that 55% of adults saying they bought wine in 2009, compared to 56% in 2007. There was a drop in buying behaviour for sparkling wine and Champagne, the survey found, from 29% of adults in 2007 to 22% in 2009, possibly induced by the onset of recession.

The biggest change was the apparent fall in the purchase of own-label wine, from 32% to 25%. Conversely, respondents to the 2009 survey were more adventurous than in 2007, with 36% saying they ‘try out new wines quite often’ (against 25% 2 years earlier), although this was counterbalanced by a steady response to buying ‘the same wine most of the time’.

Prospects for future growth in value remain “relatively good”, the report notes, with wine increasingly being seen as the most civilised way to drink alcohol. Key Note has predicted a double-digit increase in the market by value between 2010 and 2014, with value growth exceeding volume growth as consumers trade up to a better average quality of wine.

Expert analysis

Wine Market

It's estimated that the UK consumer spent a record amount on wine in 2009, an amount that accounts for 20% of all household spending on drinks and 28% of the alcohol market. The market experienced a steady year-on-year growth rate over the review period with a peak of 5.6% growth in 2007 and 1.3% growth in 2009 despite the recession. While beer is still the larger market, the long-term trend is towards drinking wine, almost all of which has to be imported.

Sectors: Wine

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