Bubbly Wine Sales Continue To Sparkle As Category Experiences Double-Digit Growth

Last week, the International Wine and Spirits Research released a report analyzing the key trends driving the US wine market in 2023. One of the firm’s most noticeable findings? Sparkling wine sales are bubbling up — the category recorded double-digit growth in 2021. The US market for sparkling wine has grown over a quarter in the last five years — the only wine segment to experience large volume growth between 2016 and 2021.

“Growth in sparkling wine is being fueled by changing attitudes to the category, with the drink moving away from exclusive association with formal events and special occasions, to one that can be enjoyed in more relaxed contexts and more frequently,” Marten Lodewijks, director of consulting Americas, IWSR Drinks Market Analysis, said. “The on-premise is also helping to broaden the opportunities for everyday celebrations involving sparkling wine – whether on its own, through cocktail culture, and/or through the brunch occasion.”

The category is recording its 21st year of both value and volume growth.

“I feel like it is a natural progression after two years of restriction with nothing to celebrate,” Danny Astorga, beverage director of The Press Room, said. “We saw people go all in on New Year’s Eve and the sparkling wine consumption just hasn’t stopped.”

“We’ve seen a rise in sales of all our Blancs de Blancs and a positive trend toward more regular year-round consumption, compared to our sales historically being weighted toward the end of year holiday season,” Erik Subrizi, wine director of Chicago Winery, said. “I think customers are becoming more comfortable with the idea of sparkling wine not just as something that needs to be reserved for special occasions, but a choice akin to red or white when drinking with meals.”

Sparkling wine sales have been on the rise in recent years, with global sales volume increasing by 3.6% in 2020, the IWSR’s 2021 Global Beverage Trends report, found. This growth is expected to continue, with a projected compound annual growth rate (CAGR) of 2.1% from 2021 to 2025.

Wine Intelligence, the wine division of IWSR Group, noted that not only are Americans buying more sparkling wine, but they’re drinking it more frequently — the number of monthly sparkling wine drinkers rose from 56% to 72% between 2019 and 2022.

Dave Gerardu, Wine Director of 50 Eggs Hospitality (including Wakuda, Yardbird, Chica in Miami) finds big Champagne houses are driving a portion of the sales. “They’ve given sparkling wines a new image — Champagne is cool, it’s luxury, it’s a statement.” He notes that both releases of new products and innovations (Moet Ice, Demi Sec Champagnes) and celebrity partnerships are fueling the growth.

While there’s renewed interest, the cost of Champagne production is also bolstering prices. “With prices of grapes in Champagne rising, the cost of Champagne has gone up significantly,” Gerardu said. “I’ve seen an increase of 35% to 40% for some pricing. This is outpricing a lot of consumers.”

Those who can’t afford Champagne anymore are starting to look elsewhere for high-quality sparkling products. Sommeliers are noticing that the sparkling wine category is broadening to include pet-nats, proseccos, and other effervescent beverages.

Scott Taylor, the beverage director at Harris’ Restaurant in San Francisco has seen a 20% increase in sparkling wine sales. “What I find most interesting is that instead of it being a rise of the usual suspects from Champagne, such as Moet or Veuve Clicquot, I am seeing people ask for small grower and producer Champagnes, proseccos, franciacorta and cavas.”

“What’s available on the market has shifted greatly,” Jack Hyland, from Absinthe Brasserie & Bar in San Francisco, agreed. “It extends beyond the classical idea of sparkling wine as Champagne, Cremant or Prosecco — we’ve seen the rise in popularity of things such as pet-nats and piquette in the world of natural wine, which often can be much more affordable and local to the consumer.”

At Bonde Fine Wine, owner Bertil Jean-Chronberg has noted that pet-nat and ancestral method sparkling wines now account for over 60% of his sparkling wine sales. He reasons that the growth of a new consumer market — the Millennials — is behind the demand. “This is the generation of low-octane and low-ABV drinking. This generation wants to consume, but with the least sugar and alcohol possible.” (Pet-nats and piquette are lower in alcohol.) “The revival of these spritzers suit the needs of the Millennial drinker and bring pleasant aromas and tastes,” Jean-Chronberg, said

While the sparkling wine category’s growth is exciting for producers and drinkers, there are still some hurdles that need to be cleared.

“These shifts have been accompanied by a drop in knowledge – further evidence of sparkling wine becoming an increasingly mainstream form of refreshment,” The IWSR’s Lodewijks, said. “As the population of sparkling wine drinkers has expanded, there has been a decline in the awareness of several sparkling wine types. Newcomers to the category demonstrate less of an understanding of sparkling wine than more established drinkers.”

But sommeliers have been smart about educating drinkers on the versatility of sparkling wines. “I also chalk the growth up to the extensive amount of passion and effort that sommeliers and wine directors have put into changing the dialogue surrounding sparkling wine in the context of dining,” says Michael Tran, Sommelier at Michelin-starred 63 Clinton on the Lower East Side. “Long considered simply a refreshing aperitif, I’m slowly but surely finding more consumers and diners sipping sparkling wine throughout the dining experience.”

“Sparkling wine, especially a rose Champagne, pairs really well with many of our menus and can be enjoyed throughout the meal with dishes like a red sauce pasta or a nice Mediterranean fish dish,” Jeremy Shanker, wine director for Mina Group, said. “Now, it’s not uncommon to see guests order a bottle for their full meal.”

The rise in sparkling wine sales might simply just be the aftermath of years spent at home or celebrating over Zoom. “It could be related to wine drinkers wanting to celebrate and live life to its fullest after a rough couple of pandemic years,” Chris Gaither, master sommelier and beverage director at Ungrafted SF, said. “There is no doubt that consumption patterns have changed with wine — especially with sparkling wine — during the pandemic years, so now consumers have an ingrained behavior pattern of appreciating bubbly in all its glory.”

Source: https://www.forbes.com/sites/katedingwall/2023/04/25/bubbly-wine-sales-continue-to-sparkle-as-category-experiences-double-digit-growth/