The UK wine sector has reached an important stage in its development, with rising production, improving quality and growing consumer recognition, but risks missing its full potential without greater policy support, WineGB chief executive Nicola Bates has warned.
Speaking on the new Vines & Viticulture Stage at Fruit Focus in East Malling, Kent, Bates said WineGB is focused on helping producers “make wine, market wine and tell that story”, while addressing the challenges of workforce development, consumer awareness and long-term investment.
The industry has expanded rapidly in recent years and now includes more than 1,100 vineyards, around 280 wineries and 4,800 productive hectares under vine.
However, Bates said significant growth will require a much larger workforce.
“By 2040, we’re going to need 30,000 employees within the space,” she said. “As it stands, we have about 3,300 full-time employees and about 10,000 seasonal workers each year.”
Building demand at home and abroad
A major challenge for the sector is increasing domestic consumption of English and Welsh wine while continuing to develop export markets.
Bates said producers must persuade more UK wine drinkers to choose local products and continue demonstrating the quality of British wines internationally.
“How do we get the consumers who are drinking wine in the UK to drink our product? How do we take our wines to the world so they are buying them? And how do we prove our quality?”
She argued that perceptions of English and Welsh wine have not kept pace with improvements in quality.
“We have exceptional quality wines, which my predecessors 10 years ago probably wouldn’t say with as much confidence as I am able to do.”
Although consumer recognition is growing, she said many consumers have still never tried English or Welsh wine.
Small businesses at the heart of the sector
WineGB now represents around 500 members, accounting for approximately 70% of UK vineyard hectarage.
Despite increasing investment across the industry, Bates said the majority of producers remain small businesses, with around two-thirds of members producing fewer than 10,000 bottles annually.
“When you’re talking about small businesses, you’re talking about families, you’re talking about love, you’re talking about passion,” she said.
Many producers continue to face challenges ranging from stock management and sales growth to climate volatility, crop protection, sustainability requirements and access to skilled labour.
Sparkling wine powers growth
Sparkling wine remains the industry’s flagship category and a major export success story.
According to Bates, sparkling wine sales have increased from 2.2 million bottles in 2018 to 6.2 million bottles today.
“It’s been a three-times growth in six years,” she said.
Exports remain heavily concentrated in sparkling wine, which accounts for around 90% of overseas sales.
However, Bates said significant opportunities also exist in the still wine category, where quality improvements are creating new market opportunities.
Economic pressures hit sales momentum
While the sector continues to grow, recent economic conditions have slowed sales momentum.
Bates said consumers are eating and drinking out less frequently, reducing opportunities to discover English and Welsh wines in restaurants, bars and hospitality venues.
“People aren’t going out as much,” she said.
Because many consumers first encounter domestic wines in hospitality settings, lower footfall is having a knock-on effect on retail demand.
She welcomed increased retailer support for English and Welsh wines but said more work is needed to communicate the category’s story to consumers.
“We are seeing retailers putting it in store more, but we have to support them to tell that story.”
Three policy asks for growth
Bates outlined three key requests in WineGB’s growth manifesto. The first priority is changing labelling rules so that only wine produced from British-grown grapes can be marketed as British wine.
“We want to protect our grapes, so only British grapes can be called British wine,” she said.
WineGB is also concerned about imported wine being processed in the UK and marketed in ways that could compete directly with domestic products.
The second priority is expanded access to grants and investment support.
Bates said UK producers need assistance with winery development, equipment purchases, marketing, education, and research and development.
“We want to get grants back in for wineries,” she said.
“We’re talking about levelling the playing field.”
She argued that competitors in major wine-producing countries such as France and Spain benefit from support mechanisms that are not currently available to UK producers.
The third proposal is a new wine tourism relief scheme that would remove duty on wine sold directly at vineyards and wineries up to a threshold of 50,000 bottles.
According to Bates, the measure would encourage tourism, support smaller businesses and generate funds for reinvestment.
“That duty saving would then go back into the business, and they will make investments,” she said.
The proposal could be particularly beneficial for micro-businesses, many of which sell 60-70% of their production directly from the cellar door.
Bates estimated the measure would represent around a £6 million annual investment from Treasury into the sector.
Tourism and sustainability offer growth opportunities
Wine tourism was highlighted as one of the sector’s strongest growth opportunities, with around 1.5 million people now visiting UK vineyards.
Bates said direct visits help consumers form lasting connections with English and Welsh wines.
“It’s about making memories and connections with friends,” she said.
“We expect those sales and visitor numbers to continue to increase.”
Sustainability is also becoming an increasingly important market differentiator. Bates pointed to the Sustainable Wines of Great Britain Certification Scheme, which now covers 43% of UK vineyard hectares.
She said some retailers are already using the certification as a purchasing requirement, while sustainability credentials are becoming increasingly important in export markets.
“It’s becoming a really important indicator for people when they’re looking to choose wines,” she said.
The comments came during Fruit Focus’s new Vines & Viticulture Stage, introduced this year to reflect the growing importance of viticulture within UK horticulture and to provide a forum for discussing the technical, commercial and policy challenges facing the industry.
