Champagne is a type of sparkling wine. Only those sparkling wines which are produced from grapes grown in the Champagne region of France are called Champagne. The grapes used for producing Champagne are Pinot Noir, Pinot Meunier, and Chardonnay. Methode Champenoise is the traditional process by which Champagne is produced which includes fermentation of grapes and other steps. Various types of Champagnes available in the market are non-vintage brut, prestige cuvees, rose, higher dosage champagnes, and low dosage champagnes.
Increasing brand awareness, improving economic conditions, innovative branding, growth in the premium wine market, and increasing consumption in emerging economies are factors supporting the market growth of the Champagne. According to Comite Champagne (trade association of Champagne manufacturers), the global Champagne market was valued at US$ 5.6 billion in the year 2018, up by 0.3% from 2017.
Other factors driving growth of the market are increasing disposable income and improving standard of living. For instance, according to Office for National Statistics (U.K.), the average household disposable income in U.K. was US$ 32,502 in 2018 and is expected to grow by 1.4% to reach US$ 32,950 in 2019.
Europe held the dominant position in the global champagne market in 2018 followed by the US. According to Comite Champagne, Europe accounted for 69% of global sales in 2018.
Asia Pacific is the fastest-growing region in the Champagne market and this can be attributed to high demand from economies such as Japan, Australia, and China. As per Comite Champagne, Japan was third largest exporting market for Champagne producers in 2018. The factors driving growth in this region are increasing disposable income, improving standard of living and rising number of HNI’s. As per World Bank, per capita income in East Asia and Pacific region was US$ 10,368 in 2017 up by 2.2 % from 2016.
Among product type, non-vintage Brut held the largest market share in the global champagne market in 2018. According to Comite Champagne, non-vintage brut champagne held a revenue share of 65.8 % in the global champagne market in 2018.
KEY MARKET PLAYERS
Players operating in the champagne market are adopting various strategies such as new product launches, in order to strengthen their position in the market. For instance, in April 2019 Moet & Chandon launched its new champagne collection ‘Grand Vintage 2012’. The champagne is produced by using Pinot Noir and Meunier grapes. The new product launch helped Moet & Chandon to expand its product portfolio.
Major players operating in the Champagne market are Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger
On the basis of raw material, the Champagne market is segmented into:
On the basis of product type, the Champagne market is segmented into:
On the basis of distribution channel, the Champagne market is segmented into:
On the basis of region, the Champagne market is segmented into: