State of the Wine Industry Report 2023
Key takeaways
01
The consumers older than 60 are the only growth segments
Consumers younger than 60 have a lower share of wine consumption compared to what they did in 2007. Consumers older than 60 are the population bands where there is still growth.
02
Premiumization trend slows
While older consumers are paying more for premium wine, younger buyers are increasingly less engaged with the wine category.
03
More consumers are abstaining from wine
35% of 21–29-year-old consumers drink alcohol, but not wine. That number drops 7 percentage points to 28% for individuals 50–59 years old. Of those consumers who left that group, two percentage points moved to being at least marginal wine consumers. Meanwhile, five percent are now abstaining from drinking alcohol.
Share of direct-to-consumer sales by age band
The proportion of wine sold directly to consumers over age 60 has continued to grow in total share over all other age bands, as consumers younger than 60 are less interested in buying wine today.
A second consecutive year of negative growth
After years of declining growth sales volume could stabilize, but swift action is required to turn the tide.
Climate change is causing some of the cost increases
Heavy rains in the winter increase the likelihood of larger harvest yields in the West. No matter the cause, a large harvest overall will be unwanted, particularly in segments where demand is negative.
State of the Wine Industry 2023
This virtual event launched the 22nd annual SVB State of the Wine Industry report. The report looks at key supply, demand and pricing trends to gauge what's going on in the wine world and to make predictions for the year ahead. Author Rob McMillan was joined by a panel of other industry experts to discuss the key findings in this year's report.
Explore previous wine reports
Written by SVB's Rob McMillan
As one of the US wine industry’s top business analysts, Rob assesses current market conditions and provides a unique trends forecast in his annual report.
