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Swedish Wine Market to Witness Positive Growth to 2017, Driven by Still Wine

According to a new report from Canadean, the Swedish Wine sector value is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.5% between 2012 and 2017. Volume will grow at a slightly higher CAGR of 4.7% for the same period.

 

Still Wine remains the largest category, recording a value share of 90.9% in 2012, whilst volume share was higher with a 94.6% share. The category is set to drive positive sector growth with both value and volume CAGRs above the sector average, at 4.8% and 4.9%, respectively. The Sparkling Wine category accounted for a much lower volume share, at just 2.9% in 2012, although largely due to premium nature of the category, saw a much higher value share of 7.2%. However, growth is expected to be poor in the years leading up to 2017, with a value CAGR of 1.6%, and volume of 1.0% forecast.

Fortified Wine is also forecast to see growth well below the sector average, with a value CAGR of 1.3%, and a volume growth at 1.2%. The category took less than a 2% value share in 2012 and suffers from high taxes, in addition to the competition provided by spirits such as vodka, and beer and cider.

 

Systembolaget remains the dominant means of Wine distribution

Distribution of Wine – and other alcoholic beverages – in Sweden was dominated by food & drinks specialists in 2012. This is as a result of the control exerted by Systembolaget, the long-standing government retail monopoly for drinks with an alcohol content of above 3.5%. Over three quarters of Wine distribution was accounted for by this channel in 2012, although its share remained unchanged. Wine can also be legally sold in restaurants, bars and pubs, which accounted for the next largest sector share and saw the highest growth in 2012. The 25% VAT level on Wine sold outside Systembolaget impacted demand in Hypermarkets & Supermarkets, which saw a decline in share.

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