Private Labeling Wine Market: Trends and Opportunities (2025)
Discover trends, opportunities, and challenges in the private label wine market. Learn how retailers can boost sales and brand identity with custom wines.
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The private label wine market has been in existence for some time and continues to experience tremendous growth—which can also translate into a chance for retailers, importers, and hospitality businesses who want to establish their own private label wine brands. With consumer tastes trending toward distinctive, exclusive, and customized products, private-label wines have emerged as a primary channel for differentiation and high margins.
This article discusses everything you need to know about the private labeling wine industry, its trends, opportunities, and how to overcome the challenges, guiding you through this industry and leveraging its emerging opportunities.
Private label wine refers to a brand under which the manufacturing and marketing of wine is undertaken and carried out under a name owned or possessed by a retailer, distributor, or an individual organization but not by the initial producer or winery. Simply put, wine manufactured by a single company but distributed and retailed under a different company's brand name.
Private-label wine companies are prevalent in retailing, as supermarkets, liquor stores, and other retailers may desire to present unique or distinctive wine products so they can compete with others on a different platform. Under this arrangement, they have the flexibility to own branding and marketing control over the product without having to spend on winemaking directly.
Yet, this type of wine brands aren't just for chain stores. Small labels are certainly able to create their own private label wine business and do quite well with this concept.
The private label wine market has experienced significant growth in recent years. In the United States, sales increased by 9.1% year-over-year, reaching $52.2 million during the 52 weeks ending June 18, 2023. This growth is notable, especially considering the overall retail wine market saw a 1% decline during the same period.
Private label wines now account for approximately 8-10% of all domestic wine sales in the U.S., nearly doubling since 2012. In Europe, the market penetration is even more pronounced, with private label wines representing about 30% of the UK market and up to 50% in some European countries.
These trends highlight a growing consumer preference for private label wines, driven by competitive pricing and perceived value. Retailers are increasingly investing in private label offerings to differentiate themselves and enhance profit margins.
Private-label wines offer several key benefits to retailers, enhancing profitability, brand identity, and market responsiveness.
Private label wine brands allow retailers to earn better profit margins, with 50% - 55% per bottle contrary to 30% - 35% for conventional branded wines. This is usually because intermediary production costs, if not totally removed, are greatly reduced which then gives way to produce quality wines at competitive prices.
Providing proprietary private-label wines gives retailers the chance to stand out from others, which then promotes a distinct brand presence. Exclusivity matters to consumers because their loyalty is mostly driven by the special products with the brand of the retailer, which also leads to strong brand recall and repeat wine purchases.
Retailers are also given more room for control over the multiple aspects of the product, like pricing, flavor profiles, branding, and packaging. Given that they have this kind of flexibility, businesses can shape their products based on their target market’s taste and quickly adapt to new market trends.
The private label market always has certain processes that differ depending on the products. In wine production, the process enables businesses to create custom-branded wines, even if they don’t own the vineyard themselves.
The initial step of private label production process in the wine sector involves retailers connecting with established wineries or custom winemaking facilities to produce the products under their own store brand wines. This kind of partnership gives retailers access to quality wine production without needing huge capital investment in winery, vineyards, or equipment.
Right after partnering with a supplier or a winery, businesses are now free to make decisions in terms of grape varieties, wine styles, and production methods that aligns with their branding and target market, just like any regular private label processes. This is also the stage where the final products should meet quality standards and customer preferences.
For your business to stand out in the crowded private label wine market, unique label and branding strategy are two of the most important considerations. This means the labels should reflect the brand’s image and appeal to the audience. Another top priority in this process is the compliance with labeling regulations.
As long as there are agreements, the private label wine can be customized in its blending, aging, and bottling aspects. Throughout this phase, a rigorous quality control should be strictly implemented for consistency and adherence to the desired flavor profile.
In the past decade, the private label market slowly but steadily raked up significant growth. Since 2012, this particular sector in the U.S. has doubled, now with approximately 8-10% of domestic wine sales alone. This expansion is really a big deal as it reflects an even bigger global trend, accounting for 30% of all sales in the UK and up to 50% in certain European countries.
Big time private label retailers have been pivotal in driving this trend. Trader Joe’s, for example, offers its Charles Shaw line—commonly known as “Two-Buck Chuck”—which provides customers with affordable branded wine options. In the similar fashion, Costco’s Kirkland Signature label also made its name in the private label market for having quality bottled wines at competitive prices.
Despite a general decline in overall sales, private-label wines have shown resilience. Recent data indicates that private-label alcohol sales have increased by 12% over the past year, 15% year-to-date, and 23% compared to two years ago.
This suggests that customers are increasingly seeking value-oriented alternatives, contributing to the sustained growth of private-label wine programs.
The private label wine sector is thriving, offering retailers wine industry opportunities to differentiate and increase margins. With strategic label design, production, and branding, businesses can sell exclusive branded wines while controlling price, packaging, and market positioning.
By capitalizing on private label wine trends, embracing e-commerce wine sales, and expanding into emerging markets, retailers, restaurants, and stores can drive sustained wine business growth while delivering high-quality private label brands to consumers worldwide.
This article discusses everything you need to know about the private labeling wine industry, its trends, opportunities, and how to overcome the challenges, guiding you through this industry and leveraging its emerging opportunities.
What is Private Label Wine?
Private label wine refers to a brand under which the manufacturing and marketing of wine is undertaken and carried out under a name owned or possessed by a retailer, distributor, or an individual organization but not by the initial producer or winery. Simply put, wine manufactured by a single company but distributed and retailed under a different company's brand name.
Private-label wine companies are prevalent in retailing, as supermarkets, liquor stores, and other retailers may desire to present unique or distinctive wine products so they can compete with others on a different platform. Under this arrangement, they have the flexibility to own branding and marketing control over the product without having to spend on winemaking directly.
Yet, this type of wine brands aren't just for chain stores. Small labels are certainly able to create their own private label wine business and do quite well with this concept.
What is the Market Size of Wine Private Labeling Wine?
The private label wine market has experienced significant growth in recent years. In the United States, sales increased by 9.1% year-over-year, reaching $52.2 million during the 52 weeks ending June 18, 2023. This growth is notable, especially considering the overall retail wine market saw a 1% decline during the same period.
Private label wines now account for approximately 8-10% of all domestic wine sales in the U.S., nearly doubling since 2012. In Europe, the market penetration is even more pronounced, with private label wines representing about 30% of the UK market and up to 50% in some European countries.
These trends highlight a growing consumer preference for private label wines, driven by competitive pricing and perceived value. Retailers are increasingly investing in private label offerings to differentiate themselves and enhance profit margins.
Benefits of Private Label Wines
Private-label wines offer several key benefits to retailers, enhancing profitability, brand identity, and market responsiveness.
Increased Profit Margins and Cost-Efficiency
Private label wine brands allow retailers to earn better profit margins, with 50% - 55% per bottle contrary to 30% - 35% for conventional branded wines. This is usually because intermediary production costs, if not totally removed, are greatly reduced which then gives way to produce quality wines at competitive prices.
Brand Differentiation and Customer Loyalty
Providing proprietary private-label wines gives retailers the chance to stand out from others, which then promotes a distinct brand presence. Exclusivity matters to consumers because their loyalty is mostly driven by the special products with the brand of the retailer, which also leads to strong brand recall and repeat wine purchases.
Flexibility and Market Adaptability
Retailers are also given more room for control over the multiple aspects of the product, like pricing, flavor profiles, branding, and packaging. Given that they have this kind of flexibility, businesses can shape their products based on their target market’s taste and quickly adapt to new market trends.
The Private Label Wine Production Process
The private label market always has certain processes that differ depending on the products. In wine production, the process enables businesses to create custom-branded wines, even if they don’t own the vineyard themselves.
Partnering with a Wine Supplier
The initial step of private label production process in the wine sector involves retailers connecting with established wineries or custom winemaking facilities to produce the products under their own store brand wines. This kind of partnership gives retailers access to quality wine production without needing huge capital investment in winery, vineyards, or equipment.
Customization
Right after partnering with a supplier or a winery, businesses are now free to make decisions in terms of grape varieties, wine styles, and production methods that aligns with their branding and target market, just like any regular private label processes. This is also the stage where the final products should meet quality standards and customer preferences.
Branding and Packaging
For your business to stand out in the crowded private label wine market, unique label and branding strategy are two of the most important considerations. This means the labels should reflect the brand’s image and appeal to the audience. Another top priority in this process is the compliance with labeling regulations.
Production and Quality Control
As long as there are agreements, the private label wine can be customized in its blending, aging, and bottling aspects. Throughout this phase, a rigorous quality control should be strictly implemented for consistency and adherence to the desired flavor profile.
Trends in Private Label Wine
In the past decade, the private label market slowly but steadily raked up significant growth. Since 2012, this particular sector in the U.S. has doubled, now with approximately 8-10% of domestic wine sales alone. This expansion is really a big deal as it reflects an even bigger global trend, accounting for 30% of all sales in the UK and up to 50% in certain European countries.
Big time private label retailers have been pivotal in driving this trend. Trader Joe’s, for example, offers its Charles Shaw line—commonly known as “Two-Buck Chuck”—which provides customers with affordable branded wine options. In the similar fashion, Costco’s Kirkland Signature label also made its name in the private label market for having quality bottled wines at competitive prices.
Despite a general decline in overall sales, private-label wines have shown resilience. Recent data indicates that private-label alcohol sales have increased by 12% over the past year, 15% year-to-date, and 23% compared to two years ago.
This suggests that customers are increasingly seeking value-oriented alternatives, contributing to the sustained growth of private-label wine programs.
Opportunities for Growth in the Private Label Wine Market
- Sustainable and Organic Wines – Increasing demand for eco-friendly branded wines makes sustainability a compelling sales factor.
- E-commerce Expansion – Online sales and subscription services for private label wines enable brands to access more consumers.
- Customization & Personalization – Custom label design, exclusive blends, and tailored offerings enhance market appeal.
- Emerging Markets – Increased wine consumption in Asia and Latin America provides opportunities for expansion not just for the retailers, but for wineries as well.
Overcoming Challenges in Private Label Wine Production
- Finding Faithful Suppliers: Finding good wine makers and wineries who can provide high-quality output at competitive prices is paramount.
- Building Unique Branding: Establishing distinctive and compelling branding that appeals to customers is important for market segmentation, especially in the wine industry.
- Navigating Regulatory Hurdles: Familiarity with and adherence to the complex set of rules that govern winemaking and selling is important to stay clear of legal traps.
- Providing Consistency and Quality: Ensuring high quality in every batch is required in order to develop and maintain customer loyalty.
Conclusion
The private label wine sector is thriving, offering retailers wine industry opportunities to differentiate and increase margins. With strategic label design, production, and branding, businesses can sell exclusive branded wines while controlling price, packaging, and market positioning.
By capitalizing on private label wine trends, embracing e-commerce wine sales, and expanding into emerging markets, retailers, restaurants, and stores can drive sustained wine business growth while delivering high-quality private label brands to consumers worldwide.