Global Champagne Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Champagne Market Overview

Champagne is a distinct type of sparkling wine that originates from the Champagne region of France or is bottled nearby. This alcoholic beverage is crafted from specific grape varieties and may include flavourings like apple, citrus, and almond to enhance its taste. Aged for at least 15 months, Champagne comes in various sweetness levels, contributing to its higher price and driving champagne demand. In February 2024, Penfolds announced a new Champagne Cuvée Brut, created in collaboration with Champagne Thiénot, at Wine Paris & Vinexpo Paris.

Champagne's connection to luxury fuels robust consumer demand, particularly during festive seasons. Continuous investments in research enhance production methods, ensuring quality and sustainability. Its global attractiveness provides substantial export opportunities in the champagne market, granting access to varied international markets. In 2021, the leading categories in extra-EU sparkling wine exports were prosecco (43%, 273 million litres), champagne (15%, 94 million litres), and cava (10%, 65 million litres). The primary export destinations for EU sparkling wine were the United States (31% of total extra-EU exports, 198 million litres) and the United Kingdom (28%, 177 million litres).

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Champagne Market Growth

The champagne market dynamics and trends are driven by multiple factors. Increasing consumer interest in luxury items, particularly during celebrations, plays a significant role. Emerging markets in Asia, Africa, and South America are enhancing global appreciation for champagne. Innovative producers are introducing new blends and limited editions, while sustainable practices draw eco-conscious consumers. LVMH-owned Moët & Chandon has collaborated with Amcor Capsules to create a plastic-free, more sustainable foil cap for its champagne bottles. They plan to launch ESSENTIELLE, a foil made from aluminium and paper, in October 2024.

Tourism in the Champagne region increases product visibility through vineyard tours. The rise in exports, especially to the United States and the United Kingdom, further boosts the champagne market revenue. The champagne market continues to flourish through a blend of tradition and innovation, leading to consistent growth. In June 2024, Uber Bubbles introduced a comprehensive Champagne tour designed for the anticipated 16 million visitors to the City of Lights, offering them a chance to “escape the hustle and experience one of France’s most iconic regions.”

Industry News

September 2024

Cellar Master Hervé Dantan reinterpreted Le Rosé with the new Le Rosé Création 67, a light, crisp, and floral Champagne highlighted at the 2024 TFWA World Exhibition. Launched exclusively with Lagardère-Extime at Paris-Charles de Gaulle Airport, it features a subtle pink salmon colour and fine scents of raspberry and pomegranate.

May 2024

Aurélie Ponnavoy launched Mademoiselle Marg’O champagne, characterised as sleek, feminine, and elegant. The cuvées were presented at the Côte des Bars Champagne Tasting Evening in 2023, celebrating the 20th anniversary of the Hôtels & Préference Group. The estate in Bergères is notable for its rare use of chardonnay.

Champagne Market Trends

Premiumization

There is a growing trend among consumers for premium and luxury products, resulting in increased demand for high-quality champagnes. This movement is driven by an appreciation for artisanship and distinctive flavour profiles. As consumers celebrate special moments, they are willing to spend more on upscale options, prompting brands to innovate with limited editions and unique blends. This emphasis on premium offerings not only fosters brand loyalty but also enhances the champagne market value, motivating producers to uphold ambitious standards and invest in quality production methods. In March 2024, Berkmann Wine Cellars partnered with EPC Champagne to introduce a fresh perspective on Champagne consumption in the UK. EPC Champagne combines innovation, terroir-focused artisanship, and environmental sustainability in Berkmann's Champagne lineup. Their commitment to minimal intervention is reflected in each cuvée, featuring low sugar levels and minimal sulfites. A notable aspect is the heat-sensitive marker on each back label, indicating the optimal serving temperature for the wine.

Sustainability Practices

Sustainability has emerged as a vital focus in the champagne industry, with both consumers and producers prioritizing eco-friendly approaches. Brands are investing in sustainable vineyard management, including organic farming and biodiversity initiatives. The champagne market dynamics and trends are influenced by innovations in packaging, such as lighter bottles and plastic-free caps, which are gaining popularity, aiming to lower production's carbon footprint and attract environmentally aware consumers. By embracing sustainable methods, champagne producers enhance their brand reputation and respond to rising regulatory demands and market preferences for responsible sourcing. In March 2024, Champagne Telmont announced its ambition to become the first climate-positive champagne house by 2030, striving for net positivity by 2050. The initial steps include creating bottles from discarded glass that does not meet chromatic standards, under a project called ‘193,000 shades of green,’ which challenges traditional glass colour norms. Telmont has also eliminated excessive packaging and bespoke bottles.

Opportunities in the Champagne Market

Tourism significantly contributes to the champagne market growth, with the Champagne region attracting millions for vineyard tours and tastings. Events like champagne festivals enhance consumer appreciation, while brands offer guided experiences that deepen connections to the product. This fusion of tourism and gastronomy enriches the market and highlights champagne's cultural importance. In May 2024, Bollinger revealed plans to elevate wine tourism in anticipation of its 2029 bicentenary, beginning construction on a luxury ecotourism centre featuring a grand cellar for an additional 1,000 barrels, private dining, and a 20-room hotel at Maison Dueil, alongside a pool and wellness area.

Market Restraints

The champagne market faces several key restraints, including stringent regulations that limit growth for new and existing producers. Climate change affects grape quality and yield, while high production costs drive up prices, potentially reducing accessibility. Market saturation complicates entry for newcomers, and changing consumer preferences towards casual drinks can diminish demand.

Economic downturns may also reduce luxury spending. Additionally, competition from other sparkling wines, such as Prosecco and Cava, poses a challenge. Lastly, supply chain disruptions from events like pandemics or geopolitical tensions can impact production and distribution, further complicating the champagne market landscape.

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Champagne Industry Segmentation

The EMR’s report titled “Champagne Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Brut Champagne
• Rose Champagne
• Blanc de Blancs
• Blanc de Noirs
• Demi-Sec
• Prestige Cuvee
• Others

Market Breakup by Price

• Economy
• Mid-Range
• Luxury

Market Breakup by Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Store
• Speciality Stores
• Online
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Champagne Market Share

By Type Analysis

Brut Champagne appeals to a wide audience because of its dry flavour, attracting various consumers for occasions ranging from casual get-togethers to formal events. Its adaptability in food pairings enhances dining experiences, increasing sales in restaurants and at events. As a mainstay in luxury markets, it upholds a prestigious reputation that encourages investment in high-quality products. The steady demand throughout the year contributes to market stability, and its cultural significance nurtures a sense of tradition, boosting popularity during special events and milestones, and thereby driving champagne industry revenue. In June 2024, Laurent-Perrier introduced “Heritage,” a new multi-vintage blend launched in London, designed to fill the gap between its Brut NV and the premium Grand Siècle cuvée, priced at £75.

Rosé Champagne is distinguished by its unique flavour profile, combining the crispness of white wine with the fruity notes of red, appealing to adventurous consumers in search of new experiences. Its eye-catching pink colour enhances its marketability, making it particularly popular on social media among younger demographics. Demand for Rosé Champagne typically surges during warmer seasons and festive events, driving sales during peak times. The rising interest in sparkling rosé provides producers with several opportunities in the champagne market to develop specialized products and limited editions for collectors. In February 2024, Veuve Clicquot launched La Grande Dame Rosé 2015, their prestige cuvée, celebrating "optimism through colour." This tenth edition features a Pinot Noir-dominated blend from the 2015 vintage and honours the legacy of Madame Clicquot, with both its white and rosé versions regarded as some of the house's most prestigious offerings.

By Price Analysis

Mid-range champagne strikes a balance between quality and affordability, making it accessible to a wider audience and encouraging regular purchases. Its reasonable price fosters brand loyalty, while its versatility makes it suitable for both casual and formal occasions. Additionally, producers can experiment with unique blends, and these options often introduce consumers to premium champagne, boosting overall growth in the champagne industry. In May 2024, Nicolas Feuillatte introduced its Réserve Exclusive, targeting the mid-range market. This champagne merges traditional craftsmanship with contemporary winemaking methods, offering an attractive choice for consumers looking for high quality at an affordable price.

Luxury champagne is synonymous with exclusivity and high quality, appealing to affluent consumers seeking unique experiences. Its association with celebrations enhances its desirability, reinforcing cultural traditions. Strong marketing strategies foster emotional connections and brand loyalty. Additionally, luxury champagne fetches high prices, resulting in greater profit margins and elevating the champagne market revenue. In March 2024, Taittinger introduced the Comtes de Champagne Blanc de Blancs 2011, highlighting its exclusivity and superior quality. The launch featured a series of tastings at upscale venues, drawing connoisseurs and enthusiasts alike.

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Champagne Market Regional Insights

Europe Champagne Market Analysis

Europe is at the forefront of champagne demand, with significant contributions from Germany, Italy, and France. Champagne houses boost local economies through tourism, while the region’s cultural heritage symbolizes celebration. Strict regulations ensure quality and authenticity, enhancing champagne's prestige and value in Europe. In May 2022, the Moët & Chandon Champagne Bar opened in Harrods, featuring a stunning 21m x 5m gold chandelier. The intimate 34-seat venue offered a full range of Moët champagnes, including iconic and Grand Vintage selections.

North America Champagne Market Trends

The North American champagne market value is supported by key players such as Moët Hennessy USA, Louis Roederer, Pernod Ricard USA and Taittinger. In July 2024, Wente Family Estates imported and distributed the Champagne Castelnau brand in the US, marking its debut in the country. This was also the first time Wente distributed champagne, featuring a Brut cuvée priced at USD 54.99 and a 2008 Brut Blanc de Blancs at USD 89.99.

Asia Pacific Champagne Market Insights

In India, companies such as Chandon India, Paul John Distillery, and Domaine Chandon are contributing to the champagne market share in the Asia-Pacific region. In Japan, the pairing of champagne with local cuisine, particularly sushi, enhances consumption. Brands tailor their marketing strategies to appeal to Japanese consumers, boosting loyalty, while festivals and tastings raise awareness and drive sales in major cities. In August 2022, Japanese rock star YOSHIKI launched his champagne brand in collaboration with Champagne Pommery. This champagne blends Chardonnay, Pinot Noir, and Pinot Meunier sourced from 40 villages in the Côte des Blancs and Montagne de Reims.

Latin America Champagne Market Analysis

Key markets in the region include Brazil, Mexico, and Argentina, where demand for champagne is high. In 2021, D.M. Brut, launched a limited-edition, sulfite-free sparkling wine crafted by winemaker Dom Maria in Brazil. Produced using the traditional Champagne method, it involves bottle fermentation. This wine, a blend of Chardonnay and Pinot Noir grapes, is aged for 12 months and features notes of tropical fruit, green apple, citrus, and pineapple.

Middle East and Africa Champagne Driving Factors

The African champagne market is growing, with governments in Egypt, Ethiopia, and Morocco recognizing its potential for investment by local and international brands. This environment encourages collaboration among producers, distributors, and retailers to improve marketing and market efficiency. In September 2022, the renowned Champagne Salon launched its 2012 vintage, marking its first release in four years. This iconic champagne represents one of the finest examples of the traditional method of Chardonnay. Notably, it is the first "blanc de blancs" champagne, crafted entirely from 100% Chardonnay.

Innovative Startups in the Champagne Market

Innovative startups in the champagne market enhance product diversity with unique blends, prioritize eco-friendly practices to attract sustainability-conscious consumers, and leverage technology for improved efficiency. They employ engaging marketing strategies to connect with younger audiences and maintain flexibility, allowing them to quickly adapt to changing market trends and consumer preferences.

Champagne Cattier: This innovative house focuses on eco-friendly production methods and modern marketing strategies. By introducing unique blends and engaging storytelling, Champagne Cattier appeals to a younger demographic, establishing a strong brand identity in a competitive market.

Champagne Leclerc Briant: Emphasising organic and biodynamic practices, Leclerc Briant aims to create champagnes that reflect their terroir. The startup utilizes low-intervention winemaking techniques, attracting environmentally conscious consumers who appreciate high-quality, sustainable products in the luxury segment.

Competitive Landscape

Key market players prioritise sustainable viticulture, employing organic and biodynamic farming practices in their vineyards. They combine traditional methods with modern techniques to produce champagnes that reflect the unique terroir. With a deep-rooted heritage and a commitment to quality, they continue to represent sophistication in the champagne industry.

Key Industry Players

THIENOT SAS Company: Founded in 1985 and headquartered in Épernay, France, it is renowned for crafting exceptional champagne. The company emphasizes quality and innovation, producing a range of prestigious labels that reflect the elegance of the champagne region, appealing to connoisseurs and collectors worldwide.

Champagne Piper-Heidsieck: Established in 1785 and based in Épernay, France, it is a historic producer known for its rich heritage and distinctive blends. Renowned for its consistent quality and elegance, Piper-Heidsieck has garnered numerous awards, making it a prominent name in the global Champagne market.

LANSON-BCC Group: Founded in 2005 and headquartered in Reims, France, the Lanson-BCC group is a key player in the champagne industry, encompassing several prestigious brands. The group emphasises quality and craftsmanship, aiming to promote the legacy of its wines while expanding its global presence in luxury markets.

Pernod Ricard SA: Established in 1975 and headquartered in Paris, France, it is a leading global spirits and wine company. Known for its diverse portfolio of premium brands, including champagnes and whiskies, it focuses on innovation and sustainability, enhancing its commitment to responsible drinking worldwide.

Other key players in the champagne market report are Champagne Laurent-Perrier, Champagne Taittinger CCVC, Vranken-Pommery Monopole, Champagne Perrier-Jouët, MOËT & CHANDON, and Champagne Louis Roederer, among others.

Recent Developments

September 2024

Piper-Heidsieck, the most awarded Champagne house of the century, proudly announced the launch of its "Twist the Script" campaign, which paid tribute to the brand's fearless creativity and illustrious history. Featuring vibrant artwork by renowned British artist and photographer Miles Aldridge, this global campaign celebrated Piper-Heidsieck's long-standing tradition of redefining conventions and its audacious spirit.

March 2024

Conrad Hong Kong’s Pacific Bar introduced a Champagne Bar featuring the city's most extensive selection of Champagnes by the glass. Guests had the opportunity to explore how various glassware enhanced the tasting experience, offering fifteen different selections from grower Champagnes to renowned houses.