Are we in the golden age of drinking at home?
The data paints a picture of a wine retail market where specialist retailers are holding strong, even as wider consumer trends shift
The wine retail market has shown surprising resilience over the 2024 Christmas period, with a number of wine-specific groups outperforming the broader market. With trends shifting towards at-home experiences, and with people reportedly frequenting pubs less and less outside of special occasions, it’s tempting to wonder: Are we living in the golden age of drinking at home?
Retailers such as Majestic and Virgin Wines have been best-placed for this very trend to come around, and have reported strong sales figures over the festive period as a result. This could be cause for cautious optimism for this niche in the retail space as economic pressures still loom.
Over the six-week period to the end of December 2024, Majestic reported a 1.9% rise in total sales and set a new Christmas record with the help of seven new store openings, as well as its steadily rising customer base. Thanks to more than 70,000 new shoppers experiencing Majestic for the first time last year, the business also achieved its largest-ever market share.
Commenting on this success, Majestic CEO John Colley, said: “Majestic colleagues across all areas of our business pulled out all the stops to deliver another cracking Christmas for our customers. I am incredibly proud of what we have achieved in such a tough market, and I cannot thank our teams enough for their hard work and passion for what we do.”
Majestic’s growth also came in the wake of its split from Naked Wines and acquisition by Fortress Investment Group five years ago. The company invested further into expanding its network in 2024 with the acquisition of Vagabond Wines, bringing an additional nine wine bars and hundreds of younger consumers into its fold.
Meanwhile, online retailer Virgin Wines reported a 6.7% year-on-year rise in revenues for the same period. For Christmas 2024, Virgin recorded 9% higher sales compared with the previous year – and the highest level since the pandemic lockdowns. The online group’s performance was also driven by customer acquisition, which could point to more people seeking specialised at-home drinks options.
Despite a slight dip in first-half revenues, Virgin Wines still outperformed the online drinks market – which declined by 5%. Profits before tax also jumped by 20% year-on-year to £1.3m.
The data paints a picture of a wine retail market where specialist retailers are holding strong, even as wider consumer trends shift. The total online market in December 2024 saw a 6.7% year-on-year increase, buoyed by strong Cyber Monday sales early in the month. As noted by Alfie Staples, senior global insights manager at Awin, “consumers really leaned into Cyber Weekend to get most of their holiday shopping done” in 2024.
Despite this early boost, conversion rates fell sharply by nearly half after Cyber Weekend, signalling another shift in shopping behaviours. Lee Thompson, CEO at Fulfilmentcrowd, observed how important agility and scalability for ecommerce success was to his own operations – especially during the peak Christmas period. Thompson, who had a record-breaking Black Friday where his order volume jumped 48% year-over-year, also agreed “that consumers’ appetite for convenience and speed carried through to Christmas”. This shift towards a seamless and personalised shopping experience played a crucial role in driving success at the Lancashire-based logistics service, particularly for wine retailers that offered more tailored services.
The demand for personalised shopping experiences was also echoed by Emily Long, CEO at digital marketing agency Genie Goals, who noted that brands investing in upper-funnel activities before Christmas were particularly successful. “Consumers have never been so savvy,” she explained. “Brands can get on those virtual shopping lists early or pay a premium to compete in those peak months further up the funnel.”
In line with these trends, Majestic and Virgin Wines also capitalised on the growing consumer desire for fun and interactive shopping experiences. According to the latest Retail Proposition Index Report from OC&C Strategy Consultants, Majestic was ranked 10th among UK retailers for its customer service, an area which continues to be a key focus as consumers seek more engaging and enjoyable shopping experiences. In the same report, Naked Wines ranked 7th among UK retailers with the best loyalty scheme.
According to OC&C, ‘fun to shop’ is increasingly crucial for consumer engagement, especially among younger generations leading this consumer behavioural shift. The consulting firm chalks this up to retail as an activity having lost its ‘fun’ element, making it vulnerable to competition from leisure activities when it comes to discretionary spending.
Luke Sparke-Rogstad, retail expert at OC&C, highlighted that “Generation Z is leading this shift”, being twice as likely as baby boomers to name ‘fun to shop’ as a reason to frequent a retailer. This trend is said to apply to all surveyed geographies.
In the wider drinks industry, Gordon Ramsay Wines – in partnership with Benchmark Drinks – is another wine retailer that has managed to buck the overall market trend. Despite a slight sales decline in the total still wine market, Gordon Ramsay Wines’ Intenso Rosso and Pinot Grigio achieved year-on-year sales increases of 29% and 26%, respectively.
English sparkling wine producer, Roebuck Estates, has also revealed that its sales spiked by 55% in 2024. Chief executive Michael Kennedy explained that the company’s growth was driven by strong sales in both the UK and export markets.
Roebuck’s success in premium retailers such as Selfridges, Harvey Nichols, and Liberty London was actually reinforced by its partnership with Majestic, where it has performed very well – particularly in the final quarter of 2024. Kennedy remarked: “We’re buoyed to see such positive sales reported from wine specialist retailers including Majestic, and it’s certainly something that is relatable to us at Roebuck Estates.”
So, are we truly in the golden age of drinking at home? The data suggests we might be. With specialist wine retailers like Majestic and Virgin Wines thriving, consumers are clearly embracing curated at-home experiences. While economic pressures remain, the resilience of this market – coupled with shifting consumer habits – signals that at-home drinking is more than just a passing trend. Whether this is the peak or just the beginning of a long-term transformation remains to be seen, but for now, the golden age is certainly in full pour.
