State of the US Wine Industry Report 2024

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Key takeaways

Premium wineries experienced mixed success during the past year. The value of premium wine is still growing, but we anticipate volume sales will finish lower this year. Increased efficiencies in production, grape growing and marketing are needed as several factors are contributing to an overall slowing-demand environment.


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.