Premium Wines and Sparkling Drive Resilience in a Declining UK Retail Market

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6 February 2026

DrinksRetailing is reporting that UK off-trade (retail) wine sales are under pressure, with total value down 1.8% year on year, mainly due to falling volumes despite higher average prices. Sparkling wine is holding up better than still wine, while red wine is declining most sharply, partly because of duty banding.

Premiumisation is a clear theme. Wines priced at £7 and above are growing, while cheaper wines are seeing significant declines. A small number of brands are driving growth, most notably La Vieille Ferme, alongside Freixenet and Villa Maria, all benefiting from positioning in the £8–9 price range.

Looking ahead, ongoing inflation and further duty rises expected in early 2026 are likely to keep the category in decline, with total value forecast to fall by around 2% per year. However, pockets of growth remain, particularly in crémant and English sparkling wine.

Moderation trends are also reshaping the market. Alcohol-free wine continues to grow as most drinkers actively reduce consumption, and wine in cans is expanding rapidly, supported by wider adoption of RTDs and changing consumer habits.

I would say the article’s definition of “premium” as wines priced above £7 feels understated and risks confusing the strength of premiumisation in the category. While £7 may represent a step up from entry-level pricing in UK retail, it sits closer to the mainstream than what many consumers, producers and retailers would genuinely consider premium, which is more typically associated with £10 to £12 and above.

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