In the last few years, the living standards of people have heightened significantly, and with this drift on board, inclination of customers to enjoy premium quality luxury products has also experienced a steep incline. Robust consumption has given way to considerable growth of the premium luxurious product market.
Luxury brands across the world have started formulating precise social media approaches to involve tech-savvy young clients & patrons in social media accomplishments that strive for more customization, better value for money, and cohesive digital access. Most frontrunners in the market are maneuvering on endorsing their products on numerous social media platforms. Moreover, developments in social media trends in the developed as well as developing economies are also compelling the Gen Z and millennial toward expending more on premium merchandises, which in turn has paved the way for lucrative opportunities for the key players in the industry.
According to a recent report published by Allied Market Research, the global luxury wines and spirits market is anticipated to showcase a striking CAGR from 2020 to 2027. Product premiumization is one of the major factors expected to propel the growth of the market in more than one way. The prominent leaders in the industry are emphasizing on the development of innovative wines with exotic flavors to serve the varying consumer preferences. Markets across the world have experienced consumers developing interest toward higher-value products, largely across an eclectic range of categories. This drift is highly prominent in the developed economies such as the United States. Individuals out there are always keen to discover unique, exciting, and stimulating alcoholic beverages.
Here, it’s worth stating that the outbreak of the Covid-19 pandemic led to economic volatility. The global lockdown, on the other hand, resulted in closure of multiple shops, rise in unemployment rates, decline in purchasing power, and increasing preferences toward essential commodities instead of alcoholic drinks such as luxury wines & spirits. These factors had a sheer negative impact on the global market for luxury wines and spirits. However, as the overall situation is restoring back to normalcy, the market has also started reviving at a quick and steady pace.
Online vending of alcohol, including champagne, is also growing at a faster pace. The emergence of on-demand delivery applications like Drizly, has worked as a key driving factor for the segment growth. Lately, renowned e-commerce retailers have also passed in the market so as to fulfill the rising demand from consumers. An increasing number of Champagne producers have been instigating direct-to-consumer gateways ever since the Covid-19 pandemic has broken out in order to escalate their online sales altogether. Customarily, Champagne brands have almost completely counted on retailers and distributors to flog their wines. But, as the hospitality sector keeps on tussling, DTC (direct-to-consumer) channels have turned out to be a striking way for producers to recover the lost revenues. For example, in the first quarter of 2020, Champagne Palmer brought forth its first online DTC shop. Moreover, few companies also happened to upgrade its home-delivery services even to alcohol including luxury wines.
Product innovations by top manufacturers concerning the usage of vegan and organic ingredients in luxury wines and spirits have created a lot of opportunities for the key players in the industry.
In early 2021, one of the prominent names in the industry, Gallo Winery, pronounced the accomplishment of the procurement of more than thirty wine varieties from Constellation Brands Inc. On the other hand, the Federal Trade Commission permitted termination of the agreement between Constellation and Gallo on the last quarter of 2020.
Gallo Winery’s Luxury Wine Group, in partnership with a renowned winemaker Randall Grahm, broadcasted the release of an assortment of wines namely The Language of Yes in July 2021.
In October 2021, at the same time, another industry leader Moët Hennessy came up with a tactical partnership with Coravin Sparkling™ System, the global wine technology trendsetter so as to transfigure the by-the-glass depletion of sparkling wines and champagne. Under this collaboration, the Coravin Sparkling System would offer an economic benefit for bars and bistros by virtually jettisoning the risk of waste while fabricating prestige Champagne more reachable to consumers.
Author’s Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing on miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest for creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last four years. koyel.ghosh@alliedmarketresearch.net
