The UK’s appetite for wine is indisputable; it is the sixth largest market for wine in the world. Domestic supply remains limited and each year the UK imports over £3 billion worth of wine, predominantly from the Mediterranean giants of the industry (France and Italy) and Australasia, making the UK the second largest importer globally.

Though the value of wine exported from the UK totalled £574 million in 2017, the sector is currently the fastest growing UK export, having risen by 17% in value and 23% in volume since 2016. Significant markets exist in the Far East with Hong Kong generating 34% of the entire value of UK exports.

Wine production generates £17.3 billion in economic activity and contributes £9.1 billion to the public purse through taxes and duty. Despite being a relatively small presence on the global market, the industry directly employs 170,000 people and a further 100,000 within the supply chain.

Investing in a vineyard

We look at the initial and long-term costs involved

In this example we have assumed land costs of around £15,000 per ha, but prices can range between £13,000 to £20,000. Costs, yields and returns will vary depending on the business plan and management. For example, investing in an on-site winery will cost more upfront but it will reduce transportation needs, processing costs and ensure control of the wine production process.

The number of UK wineries is increasing with 80 launched in 2017, an increase on the 64 that opened in 2016. Despite this, supply can outpace capacity at times, as was shown in 2018. The bumper harvest led to some estates renting extra equipment to store and process grapes. Owning a winery will help to mitigate this risk.

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