Whiskey business

Impact of COVID-19 on the luxury wine and spirits market and the way forward

HYDERABAD, India, March 22, 2022 /PRNewswire/ — COVID-19 has had a negative impact on the majority of industries and the impact has been much more severe on the restaurant and hospitality sector. Luxury or fine wines are typically purchased by food service venues such as restaurants and hotels, whose revenues have drastically decreased during the pandemic. Since the pandemic affected the restaurant and hotel business, the sale of luxury wines and spirits has declined significantly through these channels. The market rebounded in 2021 but did not reach pre-pandemic levels.

The way forward: stimulus funds for wine and spirits manufacturers and investments in digital infrastructure could revive growth

According to one estimate, a large portion of restaurants (up to 60%) have been permanently closed due to COVID and may never reopen, while others may need financial support to reopen. As this is the main distribution channel for the majority of wine makers, few companies come forward to help them. For example, in June 2020Diageo plc launched a $100 million stimulus funds to help pubs and bars welcome customers back after lockdown.

Additionally, companies are investing heavily in digital infrastructure to boost direct-to-consumer (DTC) sales and offset restaurant revenue loss. According to Liv-Ex, around 80% of people involved in the wine industry expect technology to make it easier to buy fine wines over the next five years.

Market Overview:

According to ReAnInthe global luxury wine and spirits market was valued at $76,219.4 million in 2021 and is expected to reach $104,493.4 million by 2028, registering a CAGR of 4.8% during the forecast period. According to this report, the market rebounded in 2021 and will reach its pre-pandemic level by the end of 2022. An increase in luxury travel, an easing of restrictions for restaurants and hotels and improving income available should be the main contributors to this rebound.

Download a free sample: Global Luxury Wines and Spirits Market Growth, Share, Size, Trends and Forecast (2022-2028)

Main highlights of the report:

  • Whiskey accounts for the majority (over 33%) of the global luxury wine and spirits market share, followed by cognac in 2021; and is expected to witness the highest CAGR during the forecast period (2022-2028)
  • The open (private) channel is the main distribution channel representing more than two-thirds of the global market; While revenue contribution was highest from ultra-luxury wines at prices above $2,500
  • Restaurants, the main distribution channel, were either closed or operating at reduced capacity during the pandemic, causing the market to contract
  • The pandemic has forced companies operating in this market to seek new distribution channels and strengthen their positioning by increasingly investing in digital/online infrastructure.

Access the report description at: Global market for luxury wines and spirits

Market segmentation :

ReAnIn has segmented the global luxury wine and spirits market into:

  • type of product
    • Champagne
    • Cognac
    • Wine
    • Whiskey
    • Rum
    • Vodka
  • Distribution channel
    • Open (Private)
    • Closed (government)
  • Price
    • $50-80
    • US$81-250
    • $251-2,500
    • More … than $2,500
  • Region
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

Competitive landscape

The global luxury wine and spirits market is dominated by a few prominent players such as Pernod Ricard, Diageo, Edrington Group, LVMH and Remy Martin; these five companies combined represent more than 50% of the market share. Other leading players in this market are Bacardi, Beam Suntory, William Grant & Sons, Terlato, Davide Campari-Milano NV, Brown-Forman, United Wines and Thai Beverage Plc.

Access the full report on: Global market for luxury wines and spirits

About ReAnIn

ReAnIn provides end-to-end market research services that cover different areas of support such as syndicated market research reports, custom market research reports, consultancy, long-term engagement and flash delivery. We are proud to have over 100 Fortune 500 companies in our customer base. We are a customer-focused organization and are known not only for meeting our customers’ expectations, but for exceeding them.

Media Contact:

Name: Deepak Kumar
E-mail: [email protected]
Telephone: +1 469-730-0260

SOURCE Reanin Research & Consulting Private Limited