The Wines Segment in United Kingdom registered a Market volume of 1,209.41 million litres in 2025
The indicator recorded a historical decline (CAGR) of 3.05% between 2022 to 2025, and is expected to grow by...
GlobalData projects the indicator to grow at a CAGR of...
Wines market in the UK recorded a YoY growth in 2020
The UK wine market registered moderate growth during 2015-2019. Market growth is expected to decelerate over the forecast period (2019-2024). Improving economic conditions and consumer spending power are the factors fueling the growth of this market. Moreover, this trend has encouraged consumers to spend more on premium wine. Wine manufacturers are focusing on launching products with innovative packaging and flavors in order to maintain their market share. However, the increasingly heavy duties being imposed on wine are impacting overall sales.
The UK wine market is fragmented, with numerous local and international players. It is rare for winemakers to integrate forward into on-trade or retail businesses. This means that winemakers can experience strong buyer power in markets where a concentrated food and beverages retail industry exists. Backward integration from producers is more common, with most winemakers owning or leasing vineyards, although large companies often need to source grapes from third-party growers. The ease of market entry for new players is affected by the government regulation of wine and other alcoholic beverages markets, which is stringent in many countries. Furthermore, wine is vulnerable to the threat from its substitutes, such as spirits and beer, due to low switching costs and various consumption patterns in different geographies. The degree of rivalry is assessed to be moderate in this market.
Buyer power in the wine market of the UK
In the UK wine market, hypermarkets and supermarkets are the main buyers, accounting for a mid-double-digit share of the market’s volume in 2019. Large supermarket chains are often able to negotiate strongly on price with wine producers. The switching costs for buyers are not particularly high; however, consumer demand is likely to influence retailers' stocking decisions. On the other hand, wines are not the only products most retailers offer, which indicates that they are not reliant upon the sale of these alone. Consequently, this increases buyer power. Wine producers can differentiate their products quite strongly, not only by the overall segment (such as still or sparkling) but also by region of origin, grape variety, style, and so on. This, and the fact that major buyers generally need to offer a wide range of wines for their own customers, should tend to weaken buyer power. Furthermore, producers and retailers operate in distinct businesses, with very little likelihood of producers integrating forward, or retailers integrating backwards. Overall, buyer power is assessed as moderate, although it can be stronger within certain specific markets.
Switzerland
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France
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China
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