State of the Wine Industry Report 2021
20th Anniversary Issue
Key takeaways
01
Improved demand from consumers
As hospitality, cruise lines, travel, concerts, sports and the like reopen, and deferred events such as weddings take place, there will be improved demand from consumers and a bounce for overall sales in 2021.
02
Invest in ecommerce and digital strategies
Opportunities for marginal growth will be found by investing in ecommerce and digital strategies.
03
Balanced harvest supply in the West
Supply in the West is largely balanced going into 2021 but with low growth rates, a large harvest will put supply back out of balance.
The data
Direct-to-consumer channel movement
Channel shifting was the byword for 2020 in grocery, smaller producer and direct-to-consumer channels. With tasting rooms' closure in March, the consumer adapted and went online to purchase. The shift replaced lost tasting room sales. Online is now the greatest opportunity for producers in 2021.
Off-premise volume and value changes
2020 began with declining volume measures and discounting due to an acute oversupply of wine and overall flattening consumer demand. March lockdowns moved consumers to a panic-buying phase for wine, spiking wine sales growth above 60 percent. By the end of the year, total wine sales were about even with the prior year.
Average winery sales channels pre-COVID and during COVID
Restaurants and tasting room sales made up about 43 percent of the average winery’s sales in April 2020, when the government issued shelter-in-place orders, closing both channels. Resilient producers immediately evolved to phone sales, e-commerce, Zoom tastings and curbside pickup, among other tactics. By November, the magnitude of the shift was apparent, with online sales showing the greatest total change.
E-commerce trends in alcohol
With consumers sheltering and working from home, online sales became important for all alcohol producers. Growth in delivery company accounts for companies like Drizly and Instacart exploded. We believe there is a permanent consumer shift to more online purchases of wine, which will expand with the coming of age of millennial consumers.
Read the full State of the Wine Industry Report
Download and read the full State of the Wine Industry Report on the go or save it for later.
Download now
State of the Wine Industry 2021 – Part I
The report findings were discussed in a live videocast featuring Rob McMillan, EVP and founder, SVB Wine Division. Industry experts joining him included Amy Hoopes, President, Wente Family Estates; Erik McLaughlin, CEO, Metis; Devin Joshua, Managing Director, Merryvale Vineyards; and Paul Mabray, CEO, Pix.wine.
Watch videoDownload slides
State of the Wine Industry 2021 – Part II
Continued discussion of the report findings, in addition to our esteemed panelists answering questions from the audience.
Watch videoDownload slides
Explore previous wine reports
Written by SVB's Rob McMillan
As one of the US wine industry’s top voices, Rob assesses current market conditions and provides a unique trends forecast in his annual report.
Stay up to date with SVB’s Wine Division
Get insights from our SVB wine industry experts