According to the history books, fine wine is one of the most best performing assets of the last decade. However that doesn’t mean that the market never changes. Consumption and demand varies from country to country and emerging trends can often drive up the price of certain wines.
So, what will the wine market look like in 2020?
Well recent statistics have found that China is set to become the world’s largest wine market, pushing the United States into second place and the UK into 3rd. Over the next three years, sales of still and sparkling wine are set to reach $21 billion in China, marking a growth of nearly 40 percent, while imports to the U.K. are predicted to fall from $15.8 billion to $15.5 billion, between 2015 to 2020.
The move means that China will also overtake France in the wine world. China is currently ranked fourth behind the U.S., U.K. and France.
Sales in the U.S. are projected to reach $38 billion over the same period. Back in the U.K., statistics also predict an overall decline in per capita wine consumption from 24.3 liters to 20.3 liters by 2020.
But there’s a twist.
Though consumers may be drinking less, the figures suggest they’re drinking better, with sales of premium still wine rising. Meanwhile, sales of value wines, defined as under £5 ($6), are predicted to fall about four percent over the five-year period between 2015 and 2020.
In other sectors, lower alcohol wines are expected to see greater popularity, driven by health-conscious consumers and lower price points.
British consumers are also predicted to develop a growing thirst for sparkling wines, most notably with prosecco, which is expected to lead the global growth market to reach a total consumption of 8.2 million, 9-liter cases.
Consumption of sparkling wine per head in the U.K. is also set to increase overall from 12 liters in 2015 to more than 15 liters by 2020.
The report also shows that over the next three years, while Australia will remain the leading wine supplier for the U.K., the U.S. is poised to supplant France to become its second largest wine supplier this year.
So what does all of this mean for wine investors?
Well you needn’t be worried about the consumption of table wines going down in value because that won’t affect the price of the wine you’re investing in. However, the growth of the Chinese wine market could be great news for anyone holding or looking to invest in red wines. This is because in the colour of red is seen to be lucky in China, meaning that consumption of red wine is extremely high.