The champagne market primarily involves production and sales of wine made from specific grapes grown in the Champagne region of France. Champagne is made through the traditional method which involves a second fermentation process in the bottle. This gives champagne its signature taste, aroma and bubbles. It is considered a luxury good and symbol of prestige. The global champagne market is estimated to be valued at US$ 7.67 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

Key players operating in the champagne market are Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger. The demand for champagne is growing steadily owing to increasing luxury spending across the world. The Asia Pacific region especially China and India are important emerging markets driving global champagne consumption.

Key Takeaways

Key players: Moet & Chandon, Nicolas Feuillatte, Laurent-Perrier, Piper-Heidsieck, Champagne Pommery, Louis Roederer, Champagne Lanson, Champagne Pol Roger, Krug Champagne, Champagne Cattier, Pernod Ricard SA, and Bollinger hold a majority market share and are focusing on expanding production and distribution networks globally.

Growing demand: Rapidly growing middle and upper class populations with rising disposable incomes in developing economies are fueling champagne consumption for luxury celebrations and achievements. The young millennial population also prefers champagne over other liquors.

Global expansion: Leading champagne houses are targeting new distribution channels and focusing on developing markets through elaborate marketing campaigns, product launches, and tie-ups with hotels, restaurants and retailers. The Asia Pacific region especially China presents significant growth opportunities.

Market key trends

One of the key trends driving the champagne market is increasing popularity of rosé champagne varieties especially among millennial consumers. Rosé champagne now accounts for over 15% of global champagne production compared to just 5% a decade ago. Prominent champagne makers have launched innovative rosé champagne products in sleek packaging to appeal to young consumers keen on pink bubbly beverages. This trend is boosting overall champagne consumption worldwide.
Porter's Analysis

Threat of new entrants: New entrants face high production costs required to establish champagne grape vineyards and production facilities that meet French appellation requirements. Bargaining power of buyers: Large retail buyers have significant influence over pricing due to their volume purchases while individual consumers have limited influence. Bargaining power of suppliers: Grapes must be sourced from specific regions in France giving suppliers some control over pricing and availability. Threat of new substitutes: While other sparkling wines can substitute, champagne has a strong brand associated with celebrations and luxury limiting potential substitution. Competitive rivalry: The champagne industry is highly consolidated and competitive among major brands fighting for prestige and shelf space at high-end restaurants and retailers.

Geographical Regions

Europe accounts for over 80% of global champagne consumption by value, with France alone representing over 60% of total volumes. The EU origins law restricts production of sparkling wines labeled "champagne" to certain provinces in the northern French regions of Champagne, Aube, Aisne, Marne and Val-d'Oise. Within these departments, the Côte des Blancs, Montagne de Reims, and Vallée de la Marne are prestigious subregions known for their terroirs.