The wine market - Spain

Since 2020, the Spanish wine market has experienced various shifts in demand, production, and trade. The impact of COVID-19 restrictions notably affected the HORECA sector's wine consumption which is traditionally higher than that within the food sector. However, outside this impact, wine consumption in Spain remains culturally significant, characterized by consumption habits linked to age and social occasions, with older populations and affluent classes demonstrating higher per capita consumption. Geographically, Castilla la Mancha dominates wine production, accounting for approximately 51% of the country's output.

Meanwhile, wine exports have slightly decreased by 9.5% from 2018 to 2022, with Germany, the USA, and the UK being top importers. Despite this decline, Spain maintains a strong export orientation, with over half of its wine sector's products destined for international markets. Additionally, the Spanish wine market in 2022 was valued at €5.381 billion, representing substantial domestic consumption. Globally, the wine market has continued to grow, with an estimated market size of $420.45 billion in 2022, and projections suggesting a compound annual growth rate (CAGR) of 7.37% leading up to 2025. Regulations safeguarding wine quality and origin, such as DOP and PGI, remain firmly in place to ensure the standards and reputation of Spanish wines on a global scale.

Dynamics and Consumer Preferences in the Spanish Wine Market

In recent years, the Spanish wine market has demonstrated steady growth, reflecting evolving trends among consumers. The HORECA sector has traditionally led the demand, averaging around 6 to 7 million hectolitres between 2017 and 2021, overshadowing the food sector's consumption of approximately 3 to 4 million hectolitres. This pattern, however, was disrupted in 2020 due to the health restrictions to combat COVID-19, affecting the overall dynamics of wine consumption. Wine plays a diverse role in the Spanish beverage market. By volume, wine ranks fourth after bottled water, soft drinks, and beer, commanding around 5 to 6 percent of the beverage consumption. However, when we shift the focus to value, wine's contribution jumps to 20 percent, making it the third most valuable beverage segment behind soft drinks and beer. Quality and color are significant criteria to categorize wine consumption in Spain. In terms of market share by value, D.O.P. (Denominación de Origen Protegida) wines lead with over 75 percent, while I.G.P. (Indicación Geográfica Protegida) wines and non-labelled wines hold shares of 17 to 18 percent and around 5 to 6 percent, respectively. In contrast, non-labelled wines have a more substantial share by volume, at about 40 percent.

Analyzing wine consumers outside the HORECA channel, age and social status play defining roles. Older individuals (over 65 years) are inclined to higher consumption, averaging over 15 liters per capita, whereas the younger crowd (under 35 years) tends to consume less, around 3 liters per capita. Interestingly, wine consumption also correlates with social classes and marital status, showing the highest per capita consumption among the wealthiest and the least affluent social classes, and variations based on whether individuals have children. Social factors are also intertwined with wine consumption. Survey results from 2022 reveal that wine is often associated with relaxation, indulgence, socializing, and is perceived as a reward or a means to enhance well-being. Over 40 percent of Spaniards prefer wine with meals, especially dinner, and nearly half consider it a beverage for special occasions, while a significant number of Spaniards indulge in wine as part of their routine or daily habits. In the distribution landscape, traditional retail channels dominate, with physical stores making nearly 98 percent of sales. Supermarkets are the favorite shopping destination,.

Prominent Figures in the Spanish Wine Landscape

Spain, renowned for its rich viticultural heritage, is home to a tapestry of distinguished wine producers that collectively shape the Spanish wine industry. Each player, with its unique philosophy and approach to winemaking, contributes to the diversity and dynamism of the Spanish wine market.

• J.García Carrión, S.A. Grupo stands as a testament to tradition and innovation, boasting a formidable presence and an extensive product range that caters to varied palates and preferences. As a beacon of Spanish winemaking, this group continues to leave its mark both domestically and internationally.
• Grupo Freixenet, synonymous with sparkling celebration, has carved out a niche with its revered Cava, embodying the effervescence of Catalonia's Penedès region. Their commitment to quality has earned them a spot among the leaders in the sparkling wine segment.
• Familia Torres, a name etched in history, excels in combining sustainable practices with age-old winemaking techniques. Their dedication to environmental stewardship and premium wine production demonstrates a balance between respecting the land and crafting exceptional wines.
• González Byass Group (Vinos) takes pride in its Andalusian roots, especially through its flagship Sherry wines. A family-run bodega with a global footprint, they have been ambassadors of Spanish wine culture through their meticulous and celebrated productions.
• Grupo Raventós Codorníu, steeped in history, is another venerable player known for their sparkling wines, especially the iconic Cava. Their wines reflect the terroir's nuances and the family's expertise in viticulture and enology.
• Pernod Ricard Winemakers Spain S.A. operates under a global umbrella but retains a focus on Spanish wine identity. Their portfolio showcases the richness of Spain's wine regions, delivering products that resonate both at home and on the world stage.
• Compañía Vinícola del Norte de España, S.A. underscores the significance of the Rioja region, crafting wines that resonate with the area's signature style. Their wines reflect a confluence of modernity and tradition, appealing to connoisseurs and novices alike.
• Grupo Barón de Ley, S.A. embellishes the market with its offerings from the esteemed Rioja Baja zone. They emphasize integrity and quality, ensuring that every bottle captures the essence of their terroir.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 05/05/2023

Summary and extracts

List of charts presented in this market study

• Breakdown of beverage consumption by value in Spain
• Breakdown of beverage consumption by volume in Spain
• Wine consumption by channel
• Breakdown of wine and wine-related products by value
• Breakdown in value of wine consumption by quality
• Breakdown of wine consumption by volume and quality.
• Breakdown of wine consumption by type by value
• Segmentation of D.O.P. wines
• Wine consumption by age criterion
• Wine consumption by social class
• Wine consumption by marital status
• Values behind wine consumption
• When do Spaniards drink wine?
• Wine-drinking habits in Spain
• Wine distribution channels outside HORECA
• Average distribution prices
• Spanish foreign trade in wine (Code 2204 UncomeTrade)
• Origins of Spanish wine imports
• Spanish export destinations
• Consumer price index for alcoholic beverages and tobacco
• Wine production in Spain
• Number of wine producers in Spain
• Segmentation of the Spanish wine, vinegar and grape juice market
• Spanish wine production
• Wine market sales in Spain
• Development of the size of the global wine market
• The 10 largest wine producers in 2021