State of the US Wine Industry Report 2024
Minor headwinds contributed to the mixed outcomes at premium wineries
Direct-to-consumer volume and value sales were lower in 2023 and tasting room visitation dropped for the second straight year. However, strong 2023 holiday sales should improve the outlook for both.
Consumer demand for the total wine category continues its decline
As reported over the last several years, fewer U.S. consumers have been drinking wine. Instead, they have selected alternatives such as RTDs, spirits, cannabis or have been abstaining all together.
There is an oversupply of planted vineyards given current sales volumes
Conditions are present for overproduction, which may lead to inventory excess, discounting and price reductions. Pressure starting from the grower will create inventory bulges and drive higher-than-needed inventory turns in 2024.