It becomes so hard to predict the development of any sector or industry for 2021, after 2020, being so atypical and full of uncertainties, economic and social/consumer habits. Yet, the wine industry is overcoming the substantial stakes caused by the year of the pandemic relatively well. Although there have been very negative months for the hotel and tourism industry, direct sales to consumers have remained at well-accepted figures.
Framed in this exceptional context, what may the next 12 months hold for the wine sector? These are the main predictions made by the expert Richard Halstead on the wine industry specialized website wineintelligence.com
What does 2021 hold for the wine industry?
Everything indicates that 2021 will confirm a trend that has been on the rise for a few years: the increase in online sales. Alternative packaging formats will appear, and the category known as “hard seltzer” will be a trend. On the other hand, there would still be wine tourism, which will take a while to recover. Another prediction is that the consumer will seek more quality (increased spending per bottle) than quantity (less wine will be sold).
Next, we are getting into detail about each of the trends regarding the wine sector.
Wine volumes will decrease, and the cost per bottle will increase
The first prediction has to do with the types of wine that consumers will buy during 2021. There is a growing interest in products of higher quality and a little more expensive. Consequently, this means a higher spending per bottle, although it may decrease the total volume of wine consumed, partly due to a likely increase in taxes on alcoholic beverages.
Alternative packaging formats will make significant progress in the market
Although the leadership of the glass bottle is by no means threatened, environmental motivations and a greater tendency to consume wine at home due to the restrictions of the health pandemic will promote the use of the Bag Box, cans, and alternative recyclable packaging that hardly cause environmental damage.
Wineries will create more direct and lasting relationships with their consumers, but wine tourism will take a long time to recover
Unfortunately, we will still live in the full Covid stage in 2021, which means that tourist visits to wineries (wine tourism) will not live their best days. However, it may be an excellent year to promote direct relationships between wineries and customers in different ways: customized offers, constant and fluid communication between salespeople and consumers, or direct sales between the winery and customers (even if the shipment is online), without the need for intermediaries.
The increase in retail use will continue, and investment and increasing competition will reshape the online channel and improve delivery speed
Another visible trend in wine consumption is the increasingly common online purchase to taste this delicious drink at home.This trend will not be affected by restrictions on the opening of bars, restaurants, or shops. It will entail consolidation and an increase in the retail wine market.
We expect an improvement in online distribution logistics, which will increase the existing offer and speed of delivery. Also, there may be synergies with related industries, such as gourmet or high-quality food, which can be beneficial for both sectors due to the possibility of feedback.
The ‘hard seltzer’ market will take off
Pay attention to the category known as “Hard Seltzer,” which will go from being a minority and unknown to becoming a real “boom” this year. It is a type of soft drink with a low alcohol content, which can be very well received by a young audience. It may also mean a small revolution in wine production, which will have to adapt to the taste of a new type of consumer who, previously, almost exclusively opted for a beer or soft drinks.
Wine industry predictions for 2021 are, above all, adaptations to a reality still marked by the pandemic: online shopping, home consumption, enhancing retail consumption, etc. We must add some latest trends such as the rise of an original and different type of wine, the “hard seltzer.” We can ensure that the wine sector will find a way to continue growing and gaining market share, despite the turbulent and changing times that we are all experiencing. At Agrovin, we will be watching all the novelties that offer our customers the latest in the wine market.