UK Wine Prices Set to Rise by Nearly £1 per Bottle as Duty Increases with Inflation

Wine prices across Europe continue to show significant differences, with the United Kingdom remaining one of the more expensive countries for wine drinkers. The UK government confirmed on Wednesday, November 26, that alcohol duty will rise in line with inflation as part of its latest Budget. This decision comes despite warnings from the wine and spirits industry about ongoing cost pressures and the risk of further price increases for consumers.

The Wine & Spirit Trade Association (WSTA) has criticized the move, calling it short-sighted. Miles Beale, chief executive of the WSTA, said that raising duty would “only prolong the economy’s doom loop.” With retail price inflation set at 3.66%, a standard £8.50 bottle of 13.5% abv Merlot could increase by 13 pence to £8.63 when the new rates take effect on February 1, 2026. This estimate assumes that retailers pass the full duty increase on to consumers and includes value added tax (VAT).

According to the WSTA, when these new duty increases are implemented next year, wine and spirit prices in the UK will have risen by almost £1 per bottle over a year. This figure takes into account not only duty rises but also a new waste packaging tax and VAT. Retailers and suppliers may choose different strategies for absorbing or passing on these costs, but the overall trend points to higher prices for British wine drinkers.

A recent ranking published before the Budget placed the UK as the seventh most expensive country in Europe for wine, with an average price of £8 for a mid-range bottle. The Pour Index, compiled by travel company Into The Vineyard using data from Numbeo, compared wine prices across Europe. Iceland topped the list with an average price of £18.41 per bottle—more than double the European average. Norway followed at £12.70, Switzerland at £11.21, Finland at £10.89, and Ireland at £10.46.

At the other end of the scale, Spain and Portugal were among the least expensive countries for wine buyers, with average prices of £4.36 and £4.35 per bottle respectively. France was closer to the middle at £6.10 per bottle.

Several factors influence wine prices in Europe, including production volumes, costs, availability, and winery reputation. Exchange rates, tariffs, excise duties, and VAT also play important roles in determining final retail prices.

Excise duty on wine varies widely across Europe. Major producer countries like Spain and Italy have a zero rate on wine under EU rules, while France imposes relatively low levies. In contrast, Turkey, Nordic countries such as Iceland and Norway, Ireland, and the UK all have above-average duty rates according to recent analysis by the World Health Organization (WHO). In February 2025, the UK fully implemented a new system that bases duty rates on alcoholic strength—meaning wines with higher alcohol content are taxed more heavily.

Despite being one of Europe’s more expensive places to buy wine, data shows that wine remains the cheapest alcoholic beverage on average across the continent according to WHO research. However, this has not stopped calls from health organizations for higher taxes on all alcoholic drinks to address alcohol-related diseases.

Wine prices have generally increased across Europe over the past decade. Analysis from the American Association of Wine Economists (AAWE) found that Turkey saw consumer wine prices surge by more than 1,500% in ten years up to September 2025. Croatia experienced a nearly 92% increase in prices during that period; Spain saw a 27.4% rise; Italy’s increase was just 7.4%; while Ireland actually saw an 11% decrease in wine prices.

In Britain specifically, Office of National Statistics data shows that a typical 175ml glass of wine cost an average of £5.17 in January 2025—up from £3.44 ten years earlier.

For those dining out with fine wine in major cities like London or Paris, recent research by Knight Frank found that London is among the most expensive places globally for high-end restaurant wines. The median price per bottle at top restaurants in London exceeds $740—higher than Paris’s $551 and comparable to New York and Dubai.

These trends highlight how taxes and other economic factors continue to shape Europe’s diverse landscape for wine lovers—making some countries far more costly than others for enjoying a simple bottle at home or a special glass out on the town.