Chapel Down has credited a “generational shift” towards sparkling wine for strong sales growth last year.

The Kent-based wine maker, which listed on the Aim junior stock market in 2023, said sales rose by a better-than-expected 19% to £19.4m in the year to 31 December, led by a 38% increase in retail sales as well as strong exports.

James Pennefather, the chief executive of Chapel Down, said: “In spite of continued economic pressures, consumers are continuing to find reasons to celebrate, with over 1m bottles of Chapel Down traditional method sparkling wines dispatched for the first time during 2025.

“We are seeing a generational shift into English sparkling wine as millennials, who prefer a lighter, fresher, crisper style of wines, are increasingly adopting the category.”

He said those born in the 1980s and 90s “love authenticity, craft and heritage and English sparkling offers those experiences within an hour of London” – referring to the vineyard tours and fine dining offered by Chapel Down and others.

Pennefather said Chapel Down had grown ahead of the market to take a bigger share, with drinkers turning to the brand “throughout the year and for a broader range of celebration occasions”.

He said demand from wealthier drinkers was holding up despite cost of living concerns and other trends such as the rise of GLP-1 weight control drugs, with rosé and premium wines in demand.

Chapel Down’s prices start from £15 for bottle of still Bacchus, to about £30 for a classic Brut sparkling, and more than £100 for one of the top Coeur de Cuvée sparkling wines.

Its growth comes despite a tricky year for hospitality businesses, such as restaurants and bars, which have come under pressure as households rein in spending on non-essentials amid higher energy and food bills.

Pennefather said the environment had been “more challenging” in terms of sales to the hospitality industry, but that sales rose 5% as Chapel Down expanded distribution and sold more by the glass.

He said the 2025 harvest had been “exceptional”, with yields 15% above the five-year average and the taste of the wine more complex after a long sunny summer.

Pickers harvest grapes at a Chapel Down vineyard near Maidstone. Photograph: Toby Melville/Reuters

However, Chapel Down has no immediate plans to expand its vineyards having grown to just over 1,000 acres in recent years, 777 acres of which were fully productive – a 30% increase since 2022.

Pennefather said the current land holdings, which will gradually come into full production over the next two years, were “a platform for double-digit growth into the 2030s” with the aim of tripling the number of bottles sold to about 3m or 1% of the champagne-equivalent market.

Britain is the fastest growing wine region in the world, according to the property group Knight Frank. Between 2017 and 2022, England and Wales more than doubled wine production from 5.3m to 12.2m bottles, according to WineGB. It expects wine production to double again to 24.7m bottles by 2032.

Vines are being planted as far north as Yorkshire and Scotland as the changing climate and new growing methods make UK wine-making more feasible.

Pommery and Taittinger, two of France’s best-known champagne houses, both bought land and planted vines in England about a decade ago, while the world’s biggest sparkling wine producer, Germany’s Henkell Freixenet, snapped up the English wine estate Bolney in 2022.