The UK has always accounted for a sizable share of the world’s wine imports, hitting around 20% of total imports. For three wine-producing countries – Australia, the US and New Zealand – the UK soaks up over one-third of their wine exports, in volume terms.

The UK remains an important market for the global wine industry. The Wine market in the UK is forecast to grow at a CAGR of 1.9% during 2015-2020. Among all categories, Sparkling Wine category is expected to register the fastest value growth during 2015-2020.  Hypermarkets are Supermarkets are going to be the leading distribution channel.  Martini and Kupferberg Gold are the leading brands in the UK Wine Market.  Sparkling Wine will gain popularity as a celebration drink in the UK.  Further, Wine with lower alcohol content will gain momentum due to lower import duties.

The wine industry is keen to see how the fallout from last year’s decision to leave the European Union will affect the country’s relationship with wine.  France and Italy are known as the top wine production region of the world.  However they are reducing wine production every year. France has lowered production by 11% since 2007.  Italy may be second to France, but there is a growing trend in both countries to remove vineyards. Italy has reduced their production by at least 7% since 2007

Late last month, Kym Anderson, professor of economics at the University of Adelaide, was in London to discuss his modelling of the world’s wine markets in 2025.  The volume reduction will be a blow to many participants in UK wine bottling, transporting, storing, wholesaling and retailing businesses, in addition to restaurants and pubs.  Possible mitigation of this bleak outcome could come from the UK Government lowering taxes on wine consumption and/or on wine imports