Emerging Competition in Europe’s Sparkling Wine Market
Emerging Sparkling Wine Producers Disrupt Traditional Markets
Changing consumer preferences and climate change are enabling new sparkling wine producers, such as those in the UK and Sweden, to challenge the dominance of established players, according to industry experts.
The surge in popularity of sparkling wines, particularly driven by trends like the “Prosecco and the Spritz craze,” has transformed traditional wine consumption patterns. Edouard Cassanet, spokesperson for the National Federation of Crémant Producers in France, noted that the “Prosecco effect” has significantly boosted sparkling wine consumption across Europe.
Traditional sparkling wines like Champagne are facing competition as other options emerge. In 2023, Crémant de Loire experienced unprecedented growth, producing 108 million bottles—a 5.7% increase over 2022. “This wine caters to new consumer habits; it’s more affordable and less alcoholic than traditional sparkling wines,” Cassanet added.
Affordability is crucial for consumers, especially during times of high inflation. While Champagne is priced between €25 and €50 per bottle in France, Crémant, Prosecco, and Cava are all available for under €20.
Moreover, general wine consumption in Europe has been declining. A report indicates a 24% drop in wine consumption from 2010 to 2020, with the European Commission projecting a further annual decline of 0.2% until 2031. In stark contrast, the new sparkling wine market is thriving.
A Flourishing Sparkling Wine Sector
In Spain, Cava set a new production record in 2023, reaching 252 million bottles—an increase of 3.9% from the previous year—and a 10.6% rise in value, according to official data. In Italy, sparkling wines and white wines represent over a quarter of total wine exports by value, totaling €885.1 million annually, with an increase of 9.1% in early 2024 compared to 2023.
Eurostat reports that from 2017 to 2021, exports of sparkling wines outside Europe grew by an average of 7% annually. The top markets include the United States and the United Kingdom, which accounted for 31% and 28% of exports, respectively. In 2021 alone, sparkling wine exports reached 636 million liters, a 29% increase following a decline due to the COVID-19 pandemic, with Prosecco, Champagne, and Cava representing the majority of exports.
New Competitors Emerge in Northern Europe
The growing demand for sparkling wine, coupled with climate change, is encouraging new producers to enter the market from northern Europe. Jean-Marc Touzard, research director at the French National Institute for Agricultural Research, explained that grapes for sparkling wines are typically harvested earlier to maintain acidity, making production viable in cooler climates as temperatures rise.
Innovative grape varieties like Solaris, developed in Germany in 1975, thrive in cooler conditions. In Sweden, the Särtshöga vineyard is currently producing 5,000 bottles of Solaris wine, with ambitions to double production by 2026. The Swedish market is increasingly exploring domestic sparkling wine options and has recently contracted with English vineyards to diversify its offerings.
In the UK, many vineyards are already engaged in producing sparkling wine. Chapel Down, the largest winemaker in the country, aims to significantly boost its sales between 2021 and 2026. “In northern Europe, sparkling wine consumption is well-established, and changing climate conditions are creating new opportunities for producers,” Touzard commented.
John Peterson graduated with a degree in Agricultural Sciences from Wageningen University in the Netherlands. His specialization is in sustainable crop production and soil health management. John is passionate about integrating modern technology with traditional farming methods to enhance productivity while preserving the environment. He currently works as a consultant, helping farmers adopt sustainable practices.