Nearly half of all bottles of wine purchased in Germany comes from a discount supermarket such as Lidl and Aldi, according to the German Wine Institute (DWI).
Discount supermarkets now account for 48 of all wine sales in the domestic wine market, said Ernst Büscher of the DWI.
Aldi is the biggest seller of wine in Germany, said Büscher.
The average price of wine has risen by 12 cents to €2.84 per litre, he explained.
"We have been seeing that increasing numbers of retail shops seek to improve their image by stocking a good selection of wine," added Monika Reule, manager at DWI.
The shift to the discounters has meant falling sales for specialist wine shops and vintners selling directly to the public.
Domestic wine sales fell in 2013, dropping 2% to around 14.5 million hectolitres.
Meanwhile, German wine exports rose by 1% last year to 1.3 million hectolitre.
A quarter of the 2013 wine exported was destined for the US.