Why is the wine industry fragmented?

The wine industry is fragmented because there are so many wine varieties that are grown all over the world. A company can't mass-produce every type of wine from a central location because the grapes that go into each type of wine need different climates to grow and the methods used to age the wine differ.

As a result, it's difficult for just a handful of companies to rule the wine industry. In addition, it's easy for customers to research and switch between wine varieties, which allows smaller local wineries to compete with the largest companies.