This 105-page report tackles the most pressing issues in the UK wine trade today, from online retail to sustainable wines and, inevitably, Brexit. Drawing on new consumer and trade research to support our detailed analysis of how the market is performing today, the report identifies the threats and opportunities in the UK marketplace for the next 12 months.
With the UK’s economic future still very uncertain, there’s little surprise that the wine trade is in limbo, waiting to see what the future has in store. The immediate fallout of the Brexit vote is still being keenly felt by producers and consumers alike. A drop in the pound may be good news for tourists but that is little comfort for households struggling with high debt, inflation and increased interest rates. With industry professionals expecting short 2017 harvests in major production countries, there will be an upward pressure on prices and possible falls in demand; the only bright spot is the recent unexpected decision by the UK government to freeze Excise duty rates. Despite this, wine drinkers in the UK may find themselves making compromises in either the quantity or quality of the wine they buy in 2018.
There is evidence that consumers are already choosing quality over quantity. In the last 12 months, we have witnessed a fall in wine consumption, while average spend has increased across both on and off trade occasions. The proportion of drinkers who say they always look for the best quality that they can get for their money has also increased. On the other hand, the category is losing relevance for some consumers, with other drinks areas such as craft beer, gin and cocktails grabbing more of the attention.
Amid economic and political uncertainty, wine drinkers in the UK generally retain a positive disposition: a majority expect that they will not change their drinking habits once the UK has left Europe. Prosecco and perennial favourites like Sauvignon Blanc continue to do well. Consumers remain adventurous and willing to try wine from a broader range of origins, pointing to opportunities for wine producing countries outside the EU.
Drawing on data collected from our July 2017 wave of Vinitrac® (the world’s largest ongoing omnibus survey on wine consumer attitudes and behaviours), trade interviews, secondary sources and market experience, the UK Landscapes 2017 report features:
▪ 11 key trends in the UK market and current opportunities
▪ Demographics of regular wine drinkers in the UK by gender, age, region and income
▪ Wine buying behaviour, including channel and retailer usage as well as choice cues
▪ Wine-producing country and region awareness, and varietal consumption
▪ Consumption frequency and spend per occasion in both the off- and on-trade
▪ Wine attitudes, wine involvement and attitudes towards wine closures
▪ Wine brand health analysis and insight, and measures such as brand awareness, purchase, conversion to purchase, consideration, affinity and recommendation with tracking
▪ A focus on alternative types of wine (such as low alcohol, no alcohol, Fairtrade and organic wines)
▪ Additional analysis of the Brexit effect on the UK wine industry, demonstrating consumer attitudes to wines from inside and outside the EU
▪ A full user-friendly data table with data from the questions asked of consumers, cross-tabbed by gender, age, region and income