Summary of our market study

The global wine market experienced a downturn in 2020, with a 10% decrease in value to US$ 326.6 billion, largely due to the impact of the health crisis. This contrasted the pre-crisis upward trend that saw the market at US$ 364.25 billion, indicating a significant drop from its earlier growth. Global wine production mirrored this decline with a 12% reduction in volume, producing 258 million hectoliters, attributed to adverse weather conditions. Despite this, wine consumption remained relatively stable albeit with a slight decrease, reported at 237 million hectoliters.

The UK wine market saw growth in wine bars with industry revenue reaching £836.7 million in 2021, growing faster than the overall UK economy. The market is labor intensive with substantial costs in wages and purchases, and despite the emergence of 1,878 wine bar businesses in 2021, the market remains fragmented with low concentration among players. However, wine bars continue to increase in popularity, influenced by real household disposable income and consumer purchasing power.

Evolving UK Wine Consumer Landscape and Market Dynamics

In recent years, the UK has seen a period of growth in its wine market, riding on the crest of increased wine consumption and an upswing in domestic wine production. The interest in unique and locally produced wines has particularly bolstered the wine bar sector which now accounts for a sizeable market value of between £800 and £900 million as of 2021. This mark of profitability is underscored by a 7.3% growth observed, outpacing the general economy. What's particularly intriguing about the UK wine market is the emerging dichotomy in consumer demographics. Regular wine drinkers aged 65 and over now represent between 25% and 30% of the UK's wine consumers – a significant increase from less than a quarter just five years prior. In contrast, legal drinking age (LDA) consumers aged between 18 and 34 have seen their numbers halve in the same period, now making up roughly a quarter of regular wine drinkers. Part of this shift could be attributed to the pandemic's restrictions, which displaced younger consumers from their usual social wine-drinking settings, prompting a pivot towards other beverage options.

The evolving drinking preferences are also reflected in the growing popularity of no- and low-alcohol products, championed by younger demographics who are becoming increasingly health-conscious. This shift is supporting a steady demand in alternative wine packaging formats such as cans, which are endorsed for their convenience and reduced environmental footprint. E-commerce has maintained its foothold in the wine retail space, with supermarkets and wine producers solidifying their online presence, and delivery apps gaining more traction. At the same time, wine bars are diversifying their offerings to attract a variety of consumer segments, ranging from adventurous connoisseurs to budget-conscious social drinkers, each with unique preferences and consumption habits. This move towards segmentation is a strategic response to the overall decrease in the number of regular wine drinkers – from just over 30 million to around 26 million in recent years. While traditional reds, whites, and sparkling wines continue to be mainstays in wine bars, it's the innovators in the UK wine industry who are reshaping the consumer experience. Companies like Defy, with their canned wines, and urban wineries like Renegade are challenging conventions, offering distinctive products that align with contemporary concerns of sustainability and convenience. Despite the rich landscape of wine offerings, the average net profit margin of a UK wine bar hovers at a modest 7.

Key Wine Bar Industry Players in the UK Market

As we explore the tapestry of the UK's wine bar industry, it is essential to recognize the pivotal role played by prominent market players who not only shape consumer experiences but also influence industry trends through their unique positioning and offerings.

Davy's Wine Bars : With its roots deep in London's historic wine culture, Davy's Wine Bars stands out as an esteemed purveyor of fine wines. At Davy’s at St. James, patrons can delve into an exquisite selection of wines ranging from the robust Chardonnay Mâcon Villages from Burgundy to the vibrant Pinot Grigio Zapallares Reserva from Chile. The wine bar's commitment to quality and its embrace of both tradition and innovation make it a celebrated destination for wine enthusiasts.
Humble Grape : This London-based wine bar and retailer has gained acclaim for its carefully curated selection of international wines. At Humble Grape Battersea, customers can savor the nuanced flavors of unique wines like the Australian Chardonnay from Yarra Valley, showcasing the establishment's dedication to sourcing distinctive wines that cater to the palates of discerning drinkers.
Veeno : This Italian wine cafe based in Bristol champions the authentic Italian enoteca experience, offering customers a journey through Italy's rich viticultural landscape. Their selection, featuring classics such as a delicate Pinot Grigio and a robust Pinot Noir, encapsulates Italy's storied wine heritage and Veeno's commitment to bringing a slice of Italian wine culture to the UK.
Appellation Wines : As a beacon of niche and boutique wine selections, Appellation Wines differentiates itself by spotlighting wines from lesser-known regions and smaller producers. With a penchant for the unique and the unsung, they conduct tastings that offer an educational slant, engaging wine lovers in the narrative behind each bottle.
Matthew Clark : As a titan of the distribution landscape, Matthew Clark supplies a plethora of establishments with an extensive range of alcoholic beverages. Their approach is hands-on and customer-centric, ensuring that from trendy urban wine bars to quaint rural pubs, all have access to a quality selection tailored to their needs.
Renegade Urban Winery : Embodying the inventive spirit of London's wine scene, Renegade Urban Winery is synonymous with pushing boundaries.

the wine bar market - United Kingdom

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Last update : 01/12/2022

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Summary and extracts

1 Market overview

1.1 Definition and presentation

A wine bar is a theme bar focused on oenology. Clients generally have the opportunity to discover some original wines which are not often available for drinking and which are not found in the usual distribution channels.

The global market is stable. There are low barriers to entry, however revenue volatility also remains somewhat low as wine is a non-cyclical drink.

In the UK, the sector has experienced a period of growth for the period between 2014 to 2021 as wine consumption has risen. On top of this, the domestic production in the UK has gained traction over the last couple of years, which increases interest and demand for this type of wine enjoyed in wine bars.

The Wine Bar market is highly fragmented and characterized by a majority of independent players. This makes differentiation key to succeed in this industry.

Wine bars will continue to grow in popularity. The success of the sector in general, is highly dependent on consumer purchasing power and per capita incomes.

2 Demand Analysis

3 Market structure

4 Analysis of the offer

5 Regulations

6 Positioning of the players

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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Vagabond

Davy's

Veeno

Humble Grape

Farr Vintners Ltd

Liberty Wines

Moët et Chandon (Groupe MHCS / LVMH)

Gruppo Caviro

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