Wine producers and trade members have had to withstand a storm of pressure in recent years, including climate change challenges, rising production costs, regulatory headaches and falling consumption linked to lifestyle changes.
And yet, plenty of consumers continue to enjoy wines of all styles. Market research group Mintel estimated the UK wine market alone was worth nearly £15bn in sales in 2024, despite decline in overall consumption.
‘This is a hard pass; but wine will endure,’ wrote Andrew Jefford, Co-Chair of the Decanter World Wine Awards (DWWA) in his column for Decanter magazine’s January 2025 issue. ‘It’s been with us for 8,000 years; its quality has never been better.
It’s critical, however, for wineries to do everything in their power to leverage sales in a tough market. Plus, under-pressure budgets mean that return on investment is crucial.
One route with a demonstrable record of success spanning more than 20 years is the DWWA. As the world’s largest and most respected wine competition, with more than 18,000 entries in 2024, DWWA has shown time and again that it offers a tangible impact for producers.
Trade professionals and consumers know that a DWWA medal is a trusted benchmark of quality, thanks to DWWA’s rigorous judging process involving nearly 250 leading experts, who specialise in a wide range of styles made in all corners of the wine world.
Snapshot: on the horizon for wine in 2025
Taxing issues
In the UK, a sliding-scale duty system based on alcoholic strength will be extended to many still wines for the first time in February 2025, despite intense trade lobbying. Duty will also rise in-line with inflation.
While duty on 11.5% abv still wines may dip, it would rise on higher-strength wines, showed projections from the UK Wine & Spirit Trade Association in late 2024. It warned that this could lead to higher prices for consumers in some cases.
Suppliers have been working to put systems in place. Jamie Avenell, wine buying director at Bibendum, told Decanter, ‘Our sales teams are actively engaging with our on-trade customers to ensure they understand the upcoming changes and their impact on wine lists. As always, we will work together to create tailored wine lists that balance value and profitability.’
Avenell added, ‘Our wine buying team has spent over a year collaborating with producers and we have invested in systems and tools to support customers.’
The Bibendum graphic below shows how duty might affect the price of an £8 bottle of wine at different strengths, although it’s not an exact science; retailer strategies and margins will vary.
A Bibendum graphic showing how duty tax changes might impact the price of an £8 bottle of wine in February 2025. Margins and retailer strategies will vary, however. Image Credit: Bibendum.
Tariff talk
Tariffs have been a renewed focus in the US, the world’s largest wine market, but it remains to be seen how president Trump’s stated support for such levies will play out for wine.
Elsewhere, trade body Wine Australia said recently that Australian wines have been flowing back into the key export market of mainland China following the end of punitive import tariffs in 2024. It’s early days, but this is a trend to watch in 2025.
Trend watch: From moderation to bag-in-box
Trends and buying habits vary by market, although moderation has been identified as a key consumer movement in several countries.
Some producers have pinpointed the rise of no- and low-alcohol categories as an opportunity. Spain’s Familia Torres said recently it was investing €6m (£5m) between 2024 and 2026 in a new non-alcoholic wine cellar, for instance.
In the key US market, premium wine has taken market share off lower-priced segments. Drinks market research specialist IWSR said last year it expected this to continue ‘as more moderate-drinking consumers seek to drink less but better’.
Amid falling overall consumption in several countries, there is also…
Source : https://www.decanter.com/decanter-world-wine-awards/dwwa-insight-leveraging-wine-sales-in-2025-549076/
