Vineyards and wineries in the UK: industry profile

The UK's winemaking industry has experienced remarkable growth in recent years, establishing itself as one of the fastest-growing agricultural sectors in the country. According to IBISWorld, its total revenue has grown at a CAGR of 3.5% over the past five years, reaching an estimated £422.4m in 2025.

Data compiled by WineGB show that there are now over 1,000 vineyards in the UK, covering approximately 4,200 hectares of land — meaning that the total area under vine has increased 123% over the past decade. Largely due to terroir conditions, vineyards are concentrated in southeastern England (particularly Kent and Sussex), with smaller pockets in other areas such as Cornwall, Herefordshire and Wales.

Sales levels have improved notably as the industry has been increasingly recognised for its quality. As WineGB have noted, English and Welsh wine sales increased by 10% in 2023 to reach 8.8 million bottles, despite declining global wine consumption trends. Sparkling wine, which dominates production, has seen particularly strong growth: sales rose 187% from 2.2 million bottles in 2018 to 6.2 million in 2023.

Strutt & Parker report that an estimated £570m was invested in UK vineyards and wineries in the decade to 2024. Some of this investment came from abroad, with internationally established wine groups (for example Jackson Family Wines) acquiring UK vineyard land as a climate hedge. 

Significantly, wine tourism has emerged as an important source of additional income for businesses operating in this sector, with vineyard tours and wine tasting events proving popular.

There is considerable diversity in business models across the sector. Here, there are three main categories: estate producers (who combine vineyard ownership with onsite winemaking), contract growers (who produce grapes for third-party wineries), and multi-grower/contract wineries (who process grapes from third-party sources). It is important to note, however, that these categories are not necessarily mutually exclusive (some estates produce their own wines and also take on contract projects, for example). Businesses may also engage in diversification activities, such as running tours and tasting events.

In terms of wine style, sparkling wine — particularly traditional method English sparkling — dominates production, accounting for over two-thirds of output. Still wines — white, rosé, and red — are also produced, with white wines dominating due to the climate and grape varieties grown. As Wildflower Magazine has reported, there has been some increase in red wine production in recent years, as climate conditions have changed.

Price is another key axis of segmentation. Production scale and cost structures mean that UK wines are generally positioned in the premium to super-premium categories, especially in export markets. Wine Lister note that the average per-bottle price of English sparkling wine in December 2024 was £32.47 — higher than that of Franciacorta (£25.13), Prosecco (£13.40), and Cava (£11.00). However, cheaper varieties are available, with some English sparkling wines retailing for as little as £14 per bottle.

The industry is also segmented by distribution channel. WineGB data shows that, as of 2023, domestic off-trade (retail) accounted for 36% of volume, domestic on-trade (hospitality) accounted for 28%, direct-to-consumer ('cellar door' and e-commerce) accounted for 28%, and export accounted for 8%. Here, however, there are noteworthy variations by producer size.

Broadly speaking, the outlook for UK vineyards and wineries appears to be positive, with analysts such as IBISWorld predicting that the market is to grow over the next five years. However, there are some potential challenges that businesses in the sector may need to navigate.

Below, we explore a number of key trends, challenges, and opportunities which are likely to shape the course of the industry’s development in the coming years.

Climate change presents both opportunities and challenges for UK viticulture.

As noted by the Wine Society, average growing-season temperatures in southern England have risen by two degrees since the 1970s, significantly improving conditions for grape cultivation. This trend looks set to continue: research published in OENO One indicates that growing season average temperatures in southern England could increase by up to 1.4 °C over the next two decades, increasing the potential for the cultivation of Pinot Noir grapes and the viability of still red wine production.

However, as noted in a recent report from the Grantham Institute, these benefits are tempered by increased variability in growing conditions and more extreme weather events, which mean that production is likely to vary considerably from year-to-year. After excellent growing conditions and record harvests in 2018 and 2023, the spring and summer of 2024 saw wet, mildew‑prone conditions which resulted in production being 30%-40% less than the 10-year average (according to WineGB data). Spring frosts (which are increasingly common) and poor pollination in cool years can severely cut yields, whilst disease is a heightened threat in particularly humid springs/summers.

That said, there is some scope for risk mitigation in this regard. For example, some producers are investing in frost protection systems and canopy management techniques, as well as exploring the use of cold-tolerant and drought-resistant grape varieties.

Wine tourism has emerged as an important revenue stream for many UK vineyards and wineries. It is now quite common for producers to offer experiences such as guided tours, tastings, vineyard walks, and overnight stays.

According to data from WineGB, there were 1.5m visits to UK vineyards and wineries in 2023 (a 55% increase in visitor numbers since 2022), with wine tourism accounting for 25% of total income. As such, it represents a significant diversification opportunity for businesses in the sector, and may serve as a hedge against production risks.

However, there are some issues which may hinder growth in this area. For example, a recent Lichfields report notes that planning constraints can limit development, with some inconsistency observed across regions. Successful planning applications often require careful consideration, and the presentation of extensive evidence.

Sustainability is an increasingly significant consideration for those operating in the industry. Euromonitor predict that climate-driven, value-conscious choices are to impact the future of the sector.

In 2020, WineGB launched the Sustainable Wines of Great Britain (SWGB) certification scheme, with the stated goal of bringing "authority, assurance and credibility to the way in which sustainability is measured and observed". The scheme covers issues such as carbon emissions, soil health, biodiversity, water management, energy use, and packaging. As of July 2025, 38 producers have attained SWGB certification, with more working toward accreditation.

As well as having a moral dimension, sustainability is also a market differentiator, as producers seek to meet consumer demand for eco-friendly products. Initiatives to create nature-positive products may support premium market positioning strategies, since research suggests that eco-conscious wine drinkers' average monthly on-trade spend is almost 8% above the overall average.

That said, challenges remain, particularly for smaller operations. Certification can be time-consuming, and impose significant additional demands on resources. In addition, the industry has lately received criticism over unresolved labour exploitation issues, suggesting that there is still considerable work to be done in this area.

Like many businesses, the UK's vineyards and wineries have had their profit margins squeezed by increased costs in recent years. In December 2024 the Financial Times reported that wine estates were struggling to attract buyers, whilst grappling with the impacts of minimum wage and employer NIC changes, as well as macroeconomic factors such as high interest rates and inflation.

Concerns have also been raised about the impact of alcohol duty reform from February 2025, which has significantly impacted wine pricing. With duty on 14.5% ABV wine increasing from £2.67 to £3.21 per bottle, the change has put further pressure on margins across the industry.

Some commentators — such as Stephen Skelton, writing in Vineyard Magazine — have speculated that one outcome of these pressures may be the amalgamation of some vineyards, to help with economies of scale.

Whilst it is beyond the scope of this profile to provide in-depth information on the tax treatment of vineyards and wineries, certain pointers as to key issues are set out below.

Notably, alcholic beverages are subject to excise duty, and businesses operating in the industry ought to be familiar with the relevant rules and particularities in this area. For example, it should be noted that the location at which a wine is bottled may impact its treatment for the purposes of excise duty. Generally, in order to defer excise duty liability, bottling should take place within an HMRC-approved excise warehouse. For more information, see Excise Notice 196, 'Registration and approval of excise goods held in duty suspension'.

In addition, given that it is common for newly established vineyards to take some time to turn a profit, businesses operating in this sector may wish to explore the possibility of claiming loss reliefs, and consider the implications of 'hobby farming' rules.

There are a number of particularly large-scale producers active in the sector, mostly clustered around the 'heartland' of UK wine production in the South East of England. Some notable examples include:

• Chapel Down (Kent) — England's largest wine producer by volume with over 950 acres under its management.
• Nyetimber (Sussex / Kent / Hampshire) — premium sparkling wine producer with over 800 acres.
• Denbies Wine Estate (Surrey) — currently the UK's largest single vineyard with 265 acres under vine.
• Gusbourne (Kent / Sussex) — premium estate producer with around 222 acres.

Beyond these very large players, there are a wide range of other producers of various sizes and types. Examples include:

• B58 Winery (Hampshire) — innovative new producer known for its use of polytunnels to grow grape varieties rarely seen in the UK.
• Bolney Wine Estate (Sussex) — one of England's oldest commercial vineyards and a pioneer of still red wine production in the country.
• Camel Valley (Cornwall) — vineyard notable as the first English wine producer to receive a Royal Warrant in 2018.
• We Are The Uncommon (Kent) — producer known for its focus on sustainability (as the first Certified B Corp winemaker in the UK), and distribution of wines in cans.

ICAEW’s Library & Information Service can provide information on UK and Irish participants in the winemaking industry via its wide range of company information services. For more information, please contact our enquiry team on +44 (0)20 7920 8620 or at library@icaew.com to discuss your requirements.

UK

• WineGB
• Wine and Spirit Trade Association (WSTA)
• Wine and Spirit Education Trust (WSET)

International

• International Organisation of Vine and Wine (OIV)
• International Federation of Wines and Spirits (FIVS)
• International Wine Law Association (AIDV)