Brimming over: Investment and vineyard expansion is expected to support strong growth

Although wine has been produced in the United Kingdom since the Roman era, wine production in modern times had, until recently, been little more than a hobby. During the past decade, the number of acres planted with grapevines in the United Kingdom has grown by 150%, according to trade association Wine GB. In recent years, rising domestic and international interest in British wine has been supported by the attainment of a number of major international awards. Wine is mostly produced in the South of England and is predominantly sparkling. Warmer-than-average weather for much of the past decade has improved grape yields and wine quality. Over the five years through 2018-19, revenue is forecast to grow at a compound annual rate of 12.7% to reach £203.4 million...read more.

Industry Statistics & Market Size
Revenue
£203.4m
Annual Growth 14-19
12.7%
Forecast Growth 19-24
Profit
Employment
1,485
Businesses
162
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The weak pound is likely to drive short-term export growth, supporting industry expansion
  • The increase of foreign investment in British vineyards has expanded the scope of the industry
  • Industry bodies have raised concerns that the UK’s exit from the European Union will affect inputs
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the Wine Production industry are moderate. Capital requirements for land and equipment can be immeasurable for prospective entrants that lack significant financial backing. Planting a new vineyard is costly, with new grape-growers expected to spend upwards of £25,000 per hectare on planting, trellising, preparation and drainage. Moreover, the process of growing a legitimate yield is timely. New entrants could expect to operate at a loss for anywhere between three-to-five years while a new vineyard starts to produce viable grapes for wine production. Building a winery of a commercial size is estimated to cost an additional £250,000, according to industry publication Horticulture Week and the UK Vineyard Association. Mor...purchase to read more.

    Additional Insights for the Wine Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wine Production Industry are

  • Supply contracts in place for key inputs
  • Production of premium goods/services
  • Appropriate climatic conditions
  • IBISWorld analysts also discuss how external factors such as Average maximum temperature and Real household disposable income in the Wine Production industry impact industry performance..

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    What's in this report

    What is the Wine Production Industry?

    Participants in this industry produce wine from grapes. Grapes are either purchased or grown and harvested on the estate. Products include still and sparkling wine of red and white varieties. Brandy is not included in the industry.

    Industry Products
  • Sparkling wine
  • Still white wine
  • Still red and rose wine
  • Industry Activities
  • Producing wine
  • Blending and fining wine
  • Crushing and fermenting wine grapes
  • Bottling wine
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average maximum temperature
  • Real household disposable income
  • Consumer confidence index
  • Demand from supermarkets

  • Current Performance
  • International recognition
  • Capacity expansion
  • Harvest yield
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium reputation
  • Trade flow
  • New investment
  • Table: Wine Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wine Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Alcoholic Beverage Wholesaling
  • Supermarkets
  • Off-Licences
  • Full-Service Restaurants
  • Pubs & Bars

  • Key Selling Industries
  • Grape Growing
  • Hollow Glass Manufacturing

  • Products & Services
  • Sparkling wine
  • Still white wine
  • Still red and rose wine
  • Chart: Wine Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Off-trade
  • Consumers
  • On-trade
  • Chart: Major Market Segmentation for the Wine Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Taxation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Wine Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wine Production Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Wine Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wine Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Albarino
  • A variety of white wine grape, grown Galicia, Monaco and Melgaco.
  • Bacchus
  • A white wine grape, named after the Greek god of wine.
  • Cellar-Door Sales
  • Sales from the sales room at wineries.
  • Champagne
  • A sparkling wine produced in the Champagne region of France and made from Pinot Noir, Chardonnay and Pinot Meunier grapes.
  • Hectare
  • A unit of area equal to 10,000 square metres or 2.471 acres.
  • Viticulture
  • A branch of the science of horticulture, viticulture is the production and study of wine grapes whereby viticulturists are required for vineyard management operations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wine Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wine Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wine Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wine Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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