SHERIDAN, WYOMING – Feb. 15, 2025, The wine industry is facing numerous challenges. Declining consumption, a strengthening anti-alcohol lobby, and the impacts of climate change are forcing many traditional wine regions to re-evaluate their strategies. However, amidst these challenges, one category continues to shine: sparkling wine. While not immune to economic pressures, sparkling wines like Sekt, Crémant, Cava, Prosecco, and Champagne have moved beyond special occasions to become a year-round favorite, with global sales projected to exceed $50 billion in the coming year.
Prosecco: The Trendsetter
Prosecco has masterfully navigated the evolving tastes of consumers. Even before many other wine regions, Prosecco understood the desire for approachable, fruity-fresh styles, consistently delivering on this profile. With foresight, the region's consortia carefully manage production, ensuring a balance between supply and demand.
This strategic approach is reflected in impressive sales figures. The Italian institute UIV-ISMEA Observatory estimates that Italian sparkling wine production, primarily driven by Prosecco DOC, could surpass one billion bottles in 2024. Prosecco's export success is undeniable, accounting for approximately 80% of production and 75% of total Italian sparkling wine exports.
Vanessa Lehmann, Head of Communications at Henkell Freixenet, the world's largest sparkling wine producer, states, "The Prosecco category is one of the few that continues to grow year after year. We expect this trend to continue, including in new markets such as Asia, where Prosecco is still in its infancy; we want Mionetto to be actively involved." Mionetto recently became the market leader in Germany, a significant sparkling wine market, with a 33% market share.
Innovation continues to drive Prosecco's success. The introduction of Prosecco Rosé in 2020, and the development of the collaboration with Kylie Minogue, have resonated with a growing consumer base. The region is capitalizing on wine tourism, particularly in the UNESCO World Heritage-designated hills around Conegliano and Valdobiadene. Even the no/low-alcohol trend is being addressed, with producers exploring dealcoholized options.
Lehmann adds, "If there were the possibility of producing alcohol-free wine under the Prosecco DOC label, that would be a great step and would certainly give the entire category a further boost, allowing the origin to position itself even more broadly."
Champagne: Navigating Challenges with Innovation
Champagne has faced recent headwinds. Sales have declined in both 2023 and 2024, according to the Comité Champagne. Exports have also seen double-digit decreases. However, these declines follow a period of extraordinary growth post-pandemic, and normalization was expected. Inflation and economic uncertainty have prompted consumers to seek more affordable alternatives, increasing competition from Prosecco and Crémant.
Despite these challenges, the Champagne region is optimistic. The economic outlook is improving in many countries, and major producers like LVMH report a recovery in the second half of the year. To manage supply, the permitted yield for 2024 was reduced. The region is also addressing climate change, aiming to reduce its ecological footprint through CO2 reduction plans. And, although there is not an alcohol-free Champagne. LVMH has invested in French Bloom.
Champagne is adapting to changing consumer preferences with new products, modern branding, and a stronger social media presence. Longer-matured top cuvées emphasize value, while lightweight bottles underscore sustainability efforts.
Crémant: Record Sales and Growing Popularity
Crémant has seen remarkable success. In 2023, the French producers' association FNPEC reported record sales of over 100 million bottles, further increasing to 108 million bottles in 2024. This growth follows a pandemic-related dip, showcasing the producers' ability to diversify their markets. The export share has risen significantly, now accounting for 41% of sales.
Even traditional red wine regions like Bordeaux are embracing Crémant. The production volume of Crémant in Bordeaux has roughly tripled in the last decade. While Crémant de Loire, Crémant de Bourgogne, and Crémant d’Alsace remain the primary export drivers, other regions are gaining traction.
Recent economic pressures have impacted Crémant, particularly in exports. However, the latest figures indicate a strong recovery, with the five most important origins experiencing double-digit export growth. Crémant's position as an affordable yet high-quality alternative to Champagne has solidified its appeal.
Denis Abraham, Coordinator DACH – BeNeLux, French Embassy – Business France, highlights, "The variety of the eight Crémant appellations with their different profiles and grape varieties, in addition to the excellent price-quality ratio, is a real strength in the sparkling wine league. Crémant is enjoying growing popularity, especially in Germany. Besides Crémants de Loire and Crémant d'Alsace, Crémant de Bordeaux is also developing very well. Crémants from Jura and Savoie, but also from Die and Limoux, are increasingly fascinating young consumers."
Cava: Weathering the Storm
Cava has demonstrated resilience, recovering from the sales slump of the Covid crisis with nearly 252 million bottles sold in 2023, according to the DO. Foreign markets, primarily Germany, play a crucial role in Cava's sales mix.
However, the 2023 harvest was severely impacted by drought, with yield losses of up to 50%. This has led to double-digit sales declines in 2024, although there have been some positive trends in value, likely driven by inflation. Climate change continues to pose significant challenges.
Major producers have adapted. Freixenet, the largest Cava producer, decided in 2024 to purchase wine from other regions for its "Freixenet Carta" brand, forgoing the DO Cava seal for this specific product. This ensured sufficient supply for key markets. Freixenet states that the new, fruitier, lighter style of "Premium Sparkling" has been well-received, becoming a fixture in the DACH markets.
Despite harvest challenges, Spanish sparkling wine producers are prioritizing quality. Some producers have established the "Corpinnat" designation, requiring stricter production standards. The DO Cava is also committed to organic production, aiming for 100% organic status by 2025.
Sekt: A Stable Home Market and Premium Aspirations
Sekt sales remain strong in Germany, with around 246 million bottles sold in 2024, according to the Verband Deutscher Sektkellereien. While exports are a smaller part of the picture, the domestic market shows resilience.
Dr. Alexander Tacer, Managing Director of the Verband Deutscher Sektkellereien, notes, "The general trend of consumer restraint that was noticeable last year was not reflected in the German Sekt market." The aperitif trend is contributing to Sekt's stability.
The premium Sekt segment is experiencing a dynamic evolution. The "Verband traditioneller Sektmacher" has launched a new quality offensive with the Réserve category, requiring a minimum of 36 months of yeast aging. The VDP has also introduced its own "Sekt Statute," emphasizing traditional bottle fermentation and extended yeast aging.
While recognition abroad requires further effort, the perception of Sekt is changing, with consumers increasingly understanding it as encompassing artisanal wines, not just mass-produced products.
Alcohol-free Sekt continues to gain momentum. Germany is a pioneer and the most important market for this category. Alcohol-free sparkling wine has seen steady growth in the German food retail sector, with nearly 20 million bottles sold in 2024. The carbonation in these products provides freshness and helps balance the often-higher sugar levels.
A Bright Outlook The sparkling wine market is diverse and dynamic, demonstrating remarkable adaptability in the face of economic and environmental challenges. From the trendsetting success of Prosecco to the premium aspirations of German Sekt, the future of bubbly looks bright. Innovation, quality focus, and responsiveness to evolving consumer preferences are key to the continued success of this vibrant category.